Caesars buoyed by 42% digital division net revenue rise in Q2
Adjusted EBITDA from online arm returns to profitability as operator’s net losses shrink
Caesars has reported a 42% year-on-year (YOY) uptick in net revenue from its Caesars Digital business during Q2 to $216m, up from $152m a year prior.
Delivering its latest financial update, the Las Vegas-headquartered operator confirmed a positive adjusted EBITDA from the online segment for the first time this year, up from a negative $69m return in Q2 2022 to $11m in Q2 2023.
As in previous quarters, digital net losses decreased again in Q2, falling from a negative $116m in Q2 2022 to negative $22m in Q2 2023.
Across the business, digital was the big winner of the quarter, with only Caesars regional casino business registering revenue growth in Q2, albeit at a level of just 0.5% YOY.
Caesars’ flagship Las Vegas operations saw a 1.2% YOY revenue slide during Q2 to $1.1bn, while Caesars’ managed and branded division reported a 2.7% YOY decline in revenue to $72m.
At a group level, Caesars posted net revenue of $2.88bn during Q2, up 2.1% YOY from the Q2 2022 total of $2.82bn.
Net income amounted to $920m, up from a net loss of $123m in the same period last year.
Meanwhile, group adjusted EBITDA rose to just over $1bn, up 3% YOY from Q2 2022, when it amounted to $987m.
Caesars CEO Tom Reeg highlighted the growth of the digital division and property investments during the reporting period.
“The second quarter of 2023 reflected continued strength in our business. Demand remains strong in both Las Vegas and our regional markets,” Reeg said.
“Caesars Digital posted its first quarter of positive adjusted EBITDA since our rebranding to Caesars Sportsbook in the third quarter of 2021. Our capital investments are generating stronger than expected returns based on recent new property openings,” he added.
The gambling giant’s stock fell 1.23% in after-hours trading to $57.08 on the Nasdaq after closing the day down 2%.