• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Caesars Entertainment’s loss widens in 3Q

Nov 11, 2014 Newsdesk Latest News, Top of the deck, World  


Caesars Entertainment’s loss widens in 3Q

Caesars Entertainment Corp, the largest U.S. owner of casinos and currently planning its expansion into Asia, said its third-quarter loss widened as casino revenue growth was sluggish. The firm on Monday reported a third-quarter net loss of US$908 million or US$6.29 per share compared with a loss of US$761 million or US$6.03 per share a year earlier.

Net revenue was up 6 percent compared to the third quarter of 2013 to US$2.2 billion, with casino revenue inching up 0.3 percent to US$1.4 billion, the firm said.

Consolidated adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 12.9 percent year-on-year to US$443 million. Operating expenses for the quarter were lower at US$2.54 billion compared with US$2.61 billion a year ago.

The increase in casino revenue “was driven mainly by the opening of Horseshoe Baltimore and The Cromwell, offset by significant unfavourable hold and lower volumes at Caesars Palace,” management said in prepared remarks to analysts.

Results at Caesars Palace (pictured) were held back by lower winnings, or an unfavourable hold, for the casino and a US$20 million rise in bad-debt expense, the company reported.

Caesars is struggling to cope with a slow recovery in gambling spending nationally in the U.S. and the debt it took on in a 2008 leveraged buyout.

The long-term debt of the company’s consolidated business reached US$22.9 billion at the end of September, down from US$24.2 billion at the end of June.

Caesars plans cost-cutting that will add US$250 million to US$300 million next year to EBITDA, chief executive Gary Loveman said in the prepared remarks.

The company also said it has “commenced formal discussions with several groups of creditors” to improve the financial condition of its Caesars Entertainment Operating Co unit, the controller of 44 gaming and resort properties.

“While it is premature to report on the details of these negotiations with creditors, it is fair to say that the talks have been constructive,” Mr Loveman said.

Caesars’ shares declined 4.6 percent to US$11.54 at the close in New York on Monday. The stock has lost 46 percent this year.

Caesars operates more than 50 casinos in the United States. The firm is a partner in a consortium that plans to break ground next year on a casino project in South Korea’s Incheon. The scheme is scheduled to open in 2018.

The company is also in talks to invest more than US$1 billion in a casino resort in the Philippines, although the government there seems to be divided on the proposal. Caesars management gave no details about their expansion plans for Asia during Monday’s conference call.

Separately, Caesars named Eric Hession, the company’s senior vice president and treasurer, as chief financial officer, effective January 1, 2015. Mr Hession will succeed Donald Colvin, who retires at the end of December.


  • tweet
Related articles
  • Sands China partners with Kakao Pay to lure S.Korean visitors
    Sands China partners with Kakao Pay to...

    Sep 25, 2023  

  • 26 Capital to delist, liquidate as Okada Manila merger fails
    26 Capital to delist, liquidate as...

    Sep 25, 2023  

More news
  • G2E Asia 2024 set for Macau in June, no Singapore event
    G2E Asia 2024 set for Macau in June, no...

    Sep 26, 2023  

  • LET Group, buyer amend deal for Hokkaido land
    LET Group, buyer amend deal for...

    Sep 26, 2023  


Latest News

G2E Asia 2024 set for Macau in June, no Singapore event

G2E Asia 2024 set for Macau in June, no Singapore event

Sep 26, 2023  

The 2024 edition of the Global Gaming Expo (G2E) Asia casino trade event is to be held in Macau, according to a Tuesday press release. There will not be a G2E Asia event in Singapore next year, the...
Read More
LET Group, buyer amend deal for Hokkaido land

LET Group, buyer amend deal for Hokkaido land

Sep 26, 2023  

Sale of Pagcor casinos by 2025 feasible: DoF

Sale of Pagcor casinos by 2025 feasible: DoF

Sep 26, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


50

Maximum aggregate number of licensed gaming promoters – also known as ‘junkets’ – that Macau's casino operators will be able to work with in 2024



Most Popular

  • Any Macau clamp on money changing may hurt GGR: punditsAny Macau clamp on money changing may hurt GGR: pundits September 25, 2023
  • Macau govt sets junket cap per casino operator for 2024Macau govt sets junket cap per casino operator for 2024 September 25, 2023
  • Wynn Macau Ltd cancels K-pop festival scheduled for OctWynn Macau Ltd cancels K-pop festival scheduled for Oct September 25, 2023
  • Strong Macau hotel bookings for autumn Golden WeekStrong Macau hotel bookings for autumn Golden Week September 22, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us