Caesars Entertainment reported a 2.7% year-on-year increase in Q1 revenue, driven by record performance in its digital division, which helped offset mixed results across Las Vegas and regional operations.
For the 3 month period ended March 31, Group Revenue increased to $2.87 billion, an increase of $0.08 billion over the previous year. Group EBITDA adjusted increased by 0.3% to $887 million.
The Digital Division was the best performing division with revenues increasing $374 million, an increase of 11.6% over the previous year. Digital EBITDA was $69 million and margins improved to 18.4%.
CEO Tom Reeg credited the company’s land-based customer base, saying:
The bulk of our customer acquisition comes from our Caesars Rewards database. We’re not swimming in those same pools where prediction markets are making acquisition costs higher. There’s still a gigantic opportunity in converting customers in our database… that play digitally elsewhere.
The company also experienced an increase in average revenue per user of 15% and an increase in hold to 8.3% as a result of an increased percentage of parlays and multi-leg bets compared to previous years. Continued product enhancements, including the rollout of a universal wallet and developing its own in-house games, also contributed to increased user engagement.
Caesars’ Regional Division produced $1.43 billion in revenue, an increase of 3% compared to previous years, but profitability was lower due to tougher year-over-year comparisons, including the absence of the Super Bowl taking place in New Orleans.
Revenue from Las Vegas was flat to the previous year; however, adjusted EBITDAR was slightly lower than the previous year’s EBITDAR of $426 million. The Company cited strong demand for group business and conventions, which increased occupancy to 95.3% in Las Vegas, but leisure travel has decreased.
Operating Expense was generally consistent at $2.37 billion. After accounting for additional costs incurred, Caesars had a pre-tax loss of $71 million and a net loss of $83 million, both of which are less than the previous year. The Company had a total net loss of $98 million, down from $115 million last year, when including non-controlling interests.
