Financial Data and Key Metrics Changes - The company reported consolidated net revenues of $2.9 billion and adjusted EBITDAR of $955 million for Q2 2025 [6][4] - The digital segment achieved its best quarter ever with adjusted EBITDA of $80 million, a 100% increase year over year [12][6] - Las Vegas segment reported same store adjusted EBITDAR of $469 million, with occupancy at 97% compared to 99% last year [7][6] - Regional segment reported adjusted EBITDAR of $439 million, impacted by one-time items [8][6] Business Line Data and Key Metrics Changes - Digital segment net revenues increased by 24% year over year to $343 million, with adjusted EBITDA margins growing to 23.3% [12][6] - The Las Vegas segment faced challenges with lower table games volume and hold, but is on track for a record EBITDA year in 2025 [8][6] - Regional revenues were up year over year, driven by new properties and strategic reinvestment in the Caesars Rewards database [7][6] Market Data and Key Metrics Changes - The Las Vegas market experienced softer demand, particularly in May and June, but bookings have stabilized recently [20][19] - The regional segment was negatively impacted by approximately $30 million in one-time items, including construction disruptions [22][21] - Digital growth was driven by a significant increase in sports and casino revenues, with net revenues up 2851% year over year [12][6] Company Strategy and Development Direction - The company is focused on refining its marketing approach and leveraging its customer database to drive profitable revenues [43][45] - Investments in new slot capital and property renovations are expected to generate strong returns [8][10] - The company aims to achieve over $500 million in EBITDA from digital by 2026, with ongoing improvements in customer acquisition tools [60][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter and 2026, citing a strong group calendar and expected recovery in Las Vegas [20][36] - The company anticipates that regional EBITDA will be flat to up for the full year, despite recent challenges [22][21] - Management noted that the digital segment's momentum is strong, with expectations for continued growth [60][59] Other Important Information - The company has made significant investments in its properties, including room remodels and partnerships to enhance guest experiences [66][65] - The tax bill is expected to reduce cash taxes significantly, which will help offset any shortfalls in EBITDA from Las Vegas [30][29] Q&A Session Summary Question: Can you unpack the stabilization seen in Las Vegas? - Management noted that forward cash room expectations stabilized in July after a decline in May and June, projecting a record group year in 2025 [34][35] Question: What are the specifics of the promotional efforts? - The company is leveraging its database for targeted marketing and filling rooms in Las Vegas, adapting offers based on performance [43][45] Question: How is the company addressing the softness in leisure demand in Las Vegas? - Management indicated that the softness is part of normal seasonality and expects improvement as group bookings increase [53][52] Question: What is the outlook for digital growth? - The company is on track to exceed the $500 million EBITDA target for digital, with strong momentum and customer acquisition strategies in place [60][59] Question: Are there plans for further investments in Vegas properties? - Management confirmed ongoing room remodels and partnerships to enhance property offerings, but noted that most major capital investments have already been made [66][65]

Financial Data and Key Metrics Changes - Consolidated net revenues for Q1 2025 were $2.8 billion, an increase of 2% year over year, while total adjusted EBITDAR rose to $884 million, up 4% year over year [5][6] - Same store adjusted EBITDAR in Las Vegas was $433 million, essentially flat compared to the prior year, marking the third-best Q1 performance on record [5][6] - Las Vegas EBITDA margins improved to 43.2%, up 50 basis points year over year [6] Business Line Data and Key Metrics Changes - The Regional segment delivered $440 million of adjusted EBITDAR for the quarter, up 2% year over year, driven by stable same store trends and contributions from New Orleans and Danville [8] - Caesars Digital reported net revenue of $335 million, a 19% increase year over year, with adjusted EBITDA of $43 million, up $38 million year over year [10] - Sports Betting net revenue increased by 9%, while iCasino net revenue grew by 53% year over year [10][11] Market Data and Key Metrics Changes - The Regional segment experienced significant improvement compared to the last three quarters of 2024, despite weather disruptions and the impact of one less operating day [8] - In April 2025, iGaming revenue was reported to be up almost 70% year over year, indicating strong growth momentum [19] Company Strategy and Development Direction - The company is focused on capital projects in Las Vegas, which are expected to drive better-than-expected returns, particularly from recent hotel remodels and food and beverage projects [7] - The company is in a capital inflection point, transitioning to a free cash flow harvesting mode, with expectations to use operating free cash flow primarily for debt paydown [22][24] - The management remains optimistic about the forward outlook for Las Vegas, with solid occupancy trends driven by leisure and group customers [7] Management's Comments on Operating Environment and Future Outlook - Management noted that despite economic uncertainties, they have not observed any consumer softness and forward bookings remain strong [20][22] - The company is prepared to leverage its database to outperform peers if economic conditions soften [29] - Management expressed confidence in the growth of the digital segment, which is expected to continue to perform well despite potential macroeconomic challenges [20][22] Other Important Information - The company repurchased $100 million of its stock at an average price of $23.84, indicating a commitment to opportunistic share repurchases alongside debt reduction [14] - The company expects full-year CapEx for 2025 to be approximately $600 million, excluding the Virginia joint venture [14] Q&A Session Summary Question: What is the outlook for Las Vegas bookings and group-related revenue? - Management indicated that group bookings were about 20% of the first quarter room base and expect 2025 to be a record year for group bookings, particularly strong in Q4 [28] Question: Can you clarify the headwind from last year's other revenue piece? - Management confirmed a $6 million headwind on the EBITDA side due to declines in skin revenues and World Series of Poker revenues [31] Question: What was the net impact of weather and leap year on regional performance? - Management estimated the net impact to be in excess of $10 million, with an additional $6 million from the leap year effect in Las Vegas [36] Question: Have there been changes in customer behavior, particularly among lower-end customers? - Management noted that unrated play has been softer than rated play, but rated play is up mid-single digits [43] Question: How does the company view the impact of international travel on Las Vegas? - Management stated that they primarily operate as a domestic business, with some international high-end play continuing without change [92] Question: What are the expectations for regional margins moving forward? - Management expects regional margins to improve as competitive pressures are anniversaried and as Danville and New Orleans ramp up [98]

Financial Data and Key Metrics Changes - Consolidated net revenues for Q1 2025 were $2.8 billion, an increase of 2% year over year, while total adjusted EBITDAR rose by 4% to $884 million [6][10] - Same store adjusted EBITDAR in Las Vegas was $433 million, essentially flat compared to the prior year, marking the third-best Q1 performance on record [6][8] - Las Vegas EBITDA margins improved to 43.2%, up 50 basis points year over year [8] Business Line Data and Key Metrics Changes - The Regional segment delivered adjusted EBITDAR of $440 million, up 2% year over year, driven by stable same store trends and contributions from New Orleans and Danville [10] - Caesars Digital reported net revenue of $335 million, a 19% increase year over year, with adjusted EBITDA of $43 million, up $38 million [12] - Sports Betting net revenue increased by 9%, while iCasino net revenue grew by 53% year over year [12][13] Market Data and Key Metrics Changes - The Regional segment experienced significant improvement compared to the last three quarters of 2024, despite weather disruptions [10] - In April 2025, iGaming revenue was up nearly 70% compared to the same period last year, indicating strong growth momentum [21] Company Strategy and Development Direction - The company is focused on capitalizing on new projects in Las Vegas, which are expected to yield better-than-expected returns [9] - There is a commitment to enhancing guest experiences through significant capital investments over the past four years [10] - The company is in a "free cash flow harvesting mode," with expectations to use operating free cash flow primarily for debt paydown [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Las Vegas market outlook, despite economic uncertainties, citing solid occupancy trends driven by leisure and group customers [9][22] - The company does not foresee consumer softness impacting its business, with strong forward bookings and continued growth in digital segments [22][24] - Management acknowledged potential macroeconomic challenges but emphasized that the digital segment is growing robustly, which could mitigate risks [24][46] Other Important Information - The company repurchased $100 million of its stock at an average price of $23.84, indicating a commitment to opportunistic share repurchases alongside debt reduction [16] - The company expects full-year CapEx for 2025 to be approximately $600 million, excluding the Virginia joint venture [16] Q&A Session Summary Question: What is the outlook for Las Vegas bookings and group-related revenue? - Management indicated that group bookings accounted for about 20% of the first quarter room base and expect 2025 to be a record year for group bookings, particularly strong in Q4 [29] Question: Can you clarify the headwind from last year's other revenue piece? - Management confirmed a $6 million headwind on EBITDA from skin revenues and World Series of Poker revenues, which are expected to decline in Q2 and Q3 [32] Question: What was the net impact of weather and leap year on regional performance? - Management estimated the net impact from weather and leap year to be in excess of $10 million [37] Question: Have you seen any changes in customer behavior, particularly among lower-tier customers? - Management noted that unrated play has been softer than rated play, but rated play is up mid-single digits [44] Question: How does the company view the impact of international travel on Las Vegas? - Management stated that while there has been a reduction in Canadian visitation, the overall business remains strong with 97-98% occupancy [91] Question: What are the expectations for digital growth, particularly between iGaming and sports betting? - Management indicated that while sports betting is expected to generate significant EBITDA, iGaming is seen as a stronger growth area due to its stability and customer engagement [58][62]