Caesars Entertainment revealed its financial results for the fourth quarter and full year of 2022. Nevada-based land and online US gambling giant reported net revenue of $2.82 billion, which is a 7.7% year-on-year increase.
During the company’s quarterly earnings call, Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented:
“Our fourth quarter delivered another set of strong operating results as both our Las Vegas and Regional segments each set a new fourth quarter record for Adjusted EBITDA. Additionally, our Las Vegas segment set a new full-year record for Adjusted EBITDA.
Caesars Sportsbook delivered significantly improved operating results during the fourth quarter which sets the foundation for a strong 2023. Consumer demand remains strong in all of our verticals and we are optimistic for the year ahead.”
Caesars’ fourth quarter highlights
Caesars’ Generally Accepted Accounted Principles (GAAP) net revenues stood at $2.8 billion for Q4 2022. That compares to $2.6 billion for the comparable prior-year period. The company reported a GAAP loss of $148 million in its last quarter of 2022. That’s significantly less than a net loss of $434 million during Q4 of 2021.
Caesars’ Adjusted EBITDA was $957 million. That’s a 65% increase compared to $581 million for the same period last year. Same-store Adjusted EBITDA, without the Caesars Digital segment, was $962 million. That’s an 8.6% increase related to $886 million for 2021’s Q4.
Once again, Las Vegas was the company’s strongest performer, posting a $1.15 billion net revenue for Q4 of 2022. That figure was $1 billion during the last three months of 2021.
Strong quarter for Caesars Sportsbook
As for the online sports betting and casino vertical, Caesars Digital more than doubled its Q4 net revenue to $237M from $116M. The company reported $35 million in net losses, a $325 million improvement compared to $360 million in Q4 2021.
The US gambling firm finished 2022 with $790 million in net losses, as opposed to $580 million in 2021.
The Caesars app also reported $5 million in adjusted EBITDA losses for Q4 2022. The company ended 2022 with $666 million in losses. That’s still an improvement from 2021 Q4’s $476 million.
Caesars delivers US gambling net revenue of $10.8 billion
As for the entire year, Caesars’ GAAP net revenue was $10.8 billion. That’s nearly $1.2 billion higher than last year’s $9.6 billion.
The company also revealed that its loss narrowed to $899 million, or $4.20 per share. Last year, Caesars reported a loss of $1 billion.
Same-store Adjusted EBITDA of $3.2 billion compares to $3.0 billion for FY2021. Same-store Adjusted EBITDA, excluding the Caesars Digital segment, was $3.9 billion. That’s a positive increase compared to $3.5 billion during FY2021.
Bret Yunker, Caesars’ Chief Financial Officer, concluded:
“We permanently reduced total debt by over $1.2 billion during 2022, resulting in total leverage as calculated under our bank credit facility of 4.4x as of December 31, 2022. In addition, we successfully extended $7.5 billion of debt facilities maturing in 2024 and 2025 through a $3.0 billion bank syndication completed in October 2022, and $4.5 billion of debt capital markets issuance which closed in February 2023.”