Caesars Entertainment(US:CZR)2025-10-28 20:22Financial Performance - For the three months ended September 30, 2025, total net revenues were $2,869 million, a slight decrease from $2,874 million in the same period of 2024[165]. - Adjusted EBITDA for the total company was $884 million for the three months ended September 30, 2025, down from $1,001 million in 2024, resulting in an Adjusted EBITDA margin of 30.8%[165]. - The company reported a net loss of $39 million for the three months ended September 30, 2025, compared to a net income of $9 million in the same period of 2024[165]. - During the nine months ended September 30, 2025, total net revenues were $8,570 million, an increase from $8,446 million in 2024[165]. - Adjusted EBITDA for Q3 2025 was $884 million, a decrease of 11.7% from $1,001 million in Q3 2024[200]. - For the nine months ended September 30, 2025, Adjusted EBITDA totaled $2,723 million, down 4.6% from $2,854 million in the same period of 2024[200]. Segment Performance - Caesars Digital segment reported net revenues of $311 million for the three months ended September 30, 2025, compared to $303 million in 2024, reflecting a growth of 2.6%[165]. - The Las Vegas segment generated net revenues of $952 million for the three months ended September 30, 2025, compared to $1,062 million in 2024, indicating a decline of 10.4%[165]. - The Regional segment saw an increase in net revenues to $1,536 million for the three months ended September 30, 2025, up from $1,446 million in 2024, marking a growth of 6.2%[165]. - Adjusted EBITDA for the Las Vegas segment decreased by 19.7% to $379 million for the three months and by 10.2% to $1,281 million for the nine months, reflecting lower visitation trends and unfavorable gaming hold[184]. - Adjusted EBITDA for the Regional segment was $506 million, a slight increase of $8 million (1.6%) from $498 million in the same period last year[187]. - Adjusted EBITDA for Caesars Digital decreased by $24 million (46.2%) to $28 million for the three months ended September 30, 2025, compared to $52 million in 2024[190]. Revenue and Expense Trends - Net revenues for the three months ended September 30, 2025, were $2,869 million, a slight decrease of 0.2% compared to $2,874 million in 2024, while net revenues for the nine months increased by 1.5% to $8,570 million from $8,446 million[167]. - Total operating expenses rose by 5.7% to $2,356 million for the three months and by 3.4% to $7,043 million for the nine months, primarily due to increased casino expenses and depreciation[168]. - Interest expense, net decreased by 3.4% to $(576) million for the three months and by 2.9% to $(1,729) million for the nine months, attributed to a reduction in outstanding debt and a shift to variable rate debt[177]. Cash Flow and Capital Management - Operating cash inflows for the nine months ended September 30, 2025, were $998 million, compared to $766 million for the same period in 2024, reflecting improved working capital management[203]. - As of September 30, 2025, the company had cash and cash equivalents of $836 million and total borrowing capacity of $2,792 million[203]. - Capital expenditures for the nine months ended September 30, 2025, were $648 million, down from $1.0 billion in the same period of 2024[210]. - The company has authorized a $500 million common stock repurchase program, with $271 million remaining for future repurchases as of September 30, 2025[204]. Debt and Financial Obligations - The company expects estimated lease payments to VICI and GLPI to be approximately $338 million for the remainder of 2025[207]. - Debt service obligations for the remainder of 2025 are estimated at approximately $188 million[207]. - The company redeemed $546 million of CEI Senior Notes due 2027 in July 2025, funded through the CEI Revolving Credit Facility[205]. - Long-term variable-rate borrowings totaled $6.1 billion as of September 30, 2025, representing approximately 51% of consolidated long-term debt[228]. - The weighted average interest rates on the company's variable and fixed rate debt were 6.53% and 6.18%, respectively[228]. Market Risk and Compliance - The company is exposed to market risk primarily from variable rate long-term debt arrangements and manages this risk by monitoring interest rates[227]. - The company has utilized derivative financial instruments to manage market risk but does not use them for trading purposes[230]. - The company faces certain contingencies involving litigation and compliance, which are discussed in detail in the annual report[224].