• 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
  • Macau ops share junket deposit liability: Macau top court
    Macau ops share junket deposit...

    May 16, 2022  

  • Kangwon Land back to pre-Covid capacity from May 16
    Kangwon Land back to pre-Covid capacity...

    May 13, 2022  

More news
  • Macau repeat visitors denied visa by China says Bernstein
    Macau repeat visitors denied visa by...

    May 16, 2022  

  • Macau satellite profit model still in doubt: industry
    Macau satellite profit model still in...

    May 16, 2022  


Latest News

Macau ops share junket deposit liability: Macau top court

Macau ops share junket deposit liability: Macau top court

May 16, 2022  

Macau’s Court of Final Appeal announced on Monday sentences in relation to a total of nine cases concerning debt claims involving junket operators based at local casinos. In all the cases, the...
Read More
Macau repeat visitors denied visa by China says Bernstein

Macau repeat visitors denied visa by China says Bernstein

May 16, 2022  

Macau satellite profit model still in doubt: industry

Macau satellite profit model still in doubt: industry

May 16, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”Any reduction in [Macau gaming] tax would be positive for future profits and cash flows, all else equal”

DS Kim, Amanda Cheng and Livy Lyu

Analysts at brokerage JP Morgan Securities (Asia Pacific)



Most Popular

  • Macau mulls GGR tax cut if casinos attract foreign playersMacau mulls GGR tax cut if casinos attract foreign players May 13, 2022
  • Macau GGR tax cut may spur 15pct EBITDA hike: JP MorganMacau GGR tax cut may spur 15pct EBITDA hike: JP Morgan May 16, 2022
  • Macau modifies satellite owner plan, rev share ban staysMacau modifies satellite owner plan, rev share ban stays May 13, 2022
  • Macau repeat visitors denied visa by China says BernsteinMacau repeat visitors denied visa by China says Bernstein May 16, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us