Caesars Interactive Q3 profits up 40%
Revenues hit $195m during the period leading to adjusted EBITDA of $74m
Caesars Interactive Entertainment (CIE) has reported a 40% year-on-year increase in profits in the third quarter driven by continued growth in its social and mobile games business. [private]
CIE, which operates real-money gaming sites in New Jersey and Nevada, as well as social gaming business Playtika, saw revenues increase 20% to $195m during the quarter.
The increase in revenues helped generate adjusted EBITDA of $74m, leading to income from operations more than doubling (up 104%) to $43m for the three month period ended 30 September.
During the quarter, Playtika grew monthly unique paying users from 595,000 last year to 860,000, while average revenue per user per day jumped 14% to $0.33.
The operator did not separate revenues for its real-money gaming business, but Eilers Research suggests its Nevada and New Jersey facing sites saw revenues increase 7% YoY to $11m.
Eilers said key growth drivers for Caesarsâ RMG business were the new payment category codes introduced back in April, and new states such as Pennsylvania going live.
And while RMG accounted for just 6% of CIE total revenues during the period, Eilers said it believes management is making the necessary adjustments to turn it into a break-even business on a standalone basis.
â[This] should help improve its interactive adjusted EBITDA margin, which is currently being dragged down by this business segment,â Eilers said in its reports on CIEâs Q3 earnings.
The latest numbers take CIEâs net revenues for the first nine months of the year to $557m leading to adjusted EBITDA of $205m and an operating income of $136m.