The LV Advisor declared that the Chief Executive Officer at Caesars Ent., Tom Reeg along with the senior VP of finance, Brian Agnew discussed questions with the analyst of Deutsche Bank, Carlo Santarelli.
During the discussions, analyst Santarelli acclaimed the Caesars‘ stabilized operation in LV and its prudence. The hotel and casino entertainment company also revealed about the expectations of a $25 million growth of their cash flows from the F1 race. They also foresaw that it will be more profit–generating than the upcoming Super Bowl.
Concerning the investments in LV, the company’s head does not expect that much activity, but meanwhile, they have small projects with 20% of expected returns.
In a discussion with Santarelli, the management team affirmed that Caesars, with its broad range of brick–and–mortar casinos, has no plans to partake in any Las Vegas Strip consolidation this year, whether as a buyer or seller. Additionally, the company is unlikely to make substantial enhancements to its properties situated in that region.
In parallel, Caesars‘ Ent. has a strict purpose for online content, targeting $500 million in yearly cash flow. Moreover, they have a plan to double their online casino market share. To enhance its cash–flow margins, Caesars intends to reduce promotions and corporations that are deemed uneconomical.
In areas beyond Las Vegas, the licensing process for three new casinos that resemble LV–style establishments in the New York City region is underway. However, community–advisory boards possess the authority to thwart proposals even before they reach the sitting–board stage.
As per reports, Caesars seems content with the initial outcomes of its Horseshoe Lake Charles endeavor, which is estimated to yield $60 million in yearly revenue. However, the company’s executives have voiced apprehension regarding the deficiency of the property’s 170 hotel rooms.
In the future, the triumph of the recently revamped Horseshoe in Lake Charles, Louisiana, could prompt Caesars to build an additional hotel tower in the vicinity, as the current room capacity is meager compared to rival establishments in the city.