Caesars buoyed by 104% digital revenue growth in Q4 2022
Casino and sportsbook operator shrinks digital net losses as overall group revenue rises 8%
Caesars has reported a 104% year-on-year (YOY) rise in revenue from its digital division during Q4 2022 to $237m, up from just $116m a year prior.
Releasing its financial results for the period, the Las Vegas-headquartered firm revealed narrowing digital adjusted EBITDA losses of a negative $5m, down more than 98% from the $305m loss reported by the firm during the same period of 2021.
Caesars Digital negative net income figures shrank during Q4 2022 by 90% YOY from a negative $360m to a figure of negative $35m in the period.
As with Q3, Caesars Digital was once again the leading segment of Caesars’ business during Q4, and was the only division to post a triple-digit YOY increase in its net revenue.
Caesars’ Las Vegas operations reported a 10% YOY increase in its revenue to $1.1bn, while its regional casino empire saw Q4 net revenue increase by 0.5% to $1.3bn.
Managed and branded divisional net revenue remained relatively flat at $72m, the same figure posted by the firm during Q4 2021.
At a group level, Caesars posted net revenue of $2.8bn during Q4, up 8% YOY from the Q4 2021 total of $2.5bn. Company net losses decreased by double digits over the same period by 65%, from a Q4 2021 negative $434m to a negative $148m in 2022.
Caesars’ adjusted EBITDA rose by almost 65% YOY during Q4 to $957m from a prior Q4 2021 high of $534m.
Caesars Entertainment CEO Tom Reeg characterized the quarter as a strong period for Caesars, pointing to sportsbook growth as lighting the way to a potentially strong 2023.
“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,” Reeg said.
“Additionally, our Las Vegas segment set a new full-year record for adjusted EBITDA.
He continued: “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,” Reeg concluded.
The operator’s share price fell by 3% on the positive results to a closing price of $51.22 on the Nasdaq stock exchange.