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Caesars Entertainment reported first-quarter earnings this week. During his opening statement of the earnings call, Caesars CEO Tom Reeg described the quarter by saying: “This was kind of a repeated butt-kicking, broadly based throughout the quarter.”
While Caesars’ Las Vegas hotels saw record occupancy, the casino held less than usual during the first quarter of 2024. This softened earnings for the quarter.
Much like the Caesars’ 2023 fourth-quarter earnings, this quarter was helped by its online casino and sportsbook arm, Caesars Digital.
Key takeaways
- Caesars Digital had $282 million in net revenue during the first quarter, while EBITDA during the first quarter was $5 million.
- Online casino saw 54% net revenue growth during the first quarter for Caesars.
- Caesars’ new online casino brand will be released in the second half of the year.
Caesars Entertainment Q1 2024 earnings
Overall Caesars reported net revenue of $2.7 billion. This was slightly lower than $2.8 billion during the same period in 2023.
The results were a net loss of $158 million during the first quarter. The company had a net loss of $136 million in last year’s first quarter. The result equates to a quarterly loss of 73 cents per share.
Reeg summed up Caesars’ first-quarter 2024 earnings by saying:
“Operating results during the first quarter in Las Vegas are a combination of record occupancy, driven by the Super Bowl and international visitation for Chinese New Year, offset by lower-than-expected hold. In our Regional segment, results reflect weather-related weakness in January and early February partially offset by our new property openings.”
One thing about online casinos and sports betting is that the weather doesn’t slow that business. This stands out when looking at Caesars’ first-quarter earnings.
Caesars online casino posted 54% net revenue growth in Q1 2024
Caesars Digital (NASDAQ: CZR) was the bright spot of the company’s first-quarter earnings.
The online casino and sportsbook segment had $282 million in net revenue during the first quarter. This was a 18.5% increase compared to the same period last year when it generated $238 million.
Caesars Digital turned its earnings around. EBITDA during the first quarter was $5 million. During the same period last year Caesars Digital lost $4 million.
While revenue and earnings were positive the net loss for Caesars Digital increased by 6.3% from $32 million to $34 million.
Online casinos strongest segment of Caesars Digital
Caesars Palace Online Casino and Caesars Sportsbook & Casino make up Caesars Digital. While both had positive quarters for the company, the online casino segment was stronger.
Caesars’ online casino segment saw 54% net revenue growth during the first quarter. Online sports betting net revenues were a little softer with a 23% increase compared to last year.
Co-President of Caesars Sports and Online Gaming Eric Hession said the sports betting segment was slowed due to “less favorable results around Super Bowl and March Madness.” Hession noted the strength of the Caesars Palace online casino app saying that it:
“Now makes up more than 50% of the net gaming revenues in this segment. Customers continue to respond favorably to the product interface, game content and improved loyalty marketing. iCasino remains a critical component of our digital growth strategy for 2024 and beyond.”
The company will continue to feed the growing online casino segment and plans to launch a second brand to complement the recently upgraded Caesars Palace online casino.
Caesars recently debuted an NHL-themed live dealer blackjack game as the league dropped the puck on the playoffs. The company also released Caesars Palace Frenzy in New Jersey.
The new online casino brand will be released in the second half of the year. Reeg didn’t say which brand will be used but he said to expect the new app “before the end of the year.”
