Caesars Q2 digital revenue rockets 129%
Las Vegas stalwart hails “significant” improvement as land-based reopening in Las Vegas boosts overall revenue
Caesars Entertainment has reported a 432% year on year rise in overall group revenue for Q2 2021 to $2.5bn.
The triple-digit upsurge was largely due to the return of land-based operations following the relaxation of Covid-19 restrictions in key markets including Las Vegas and across the firm’s regional operations.
Group revenue during the same period of 2020 amounted to just $470m while restrictions were in place.
Caesars Digital Q2 revenue soared by 129% annually to $117m, an increase buoyed in part by the addition of $31m in revenue arising from its $3.7bn takeover of William Hill.
The group’s managed and international operations reported a 218% revenue uptick to $86m. However, revenue from Caesars corporate operations declined slightly, from $7m in 2020 to $5m in Q2 2021.
Company net losses narrowed to $36m from a previous Q2 2020 high of $1.1bn, while adjusted EBITDA rose to a positive $1bn from a prior 2020 negative of $131m.
Over the course of H1, Caesars’ overall group revenue rose by 68% year on year to $4.5bn, with net losses falling from $1bn in 2020 to $415m during the same period in 2021.
Adjusted EBITDA rose 468% during the first half of the year to $1.5bn.
Caesars confirmed the sale of its UK operations on 16 July, although financial terms of the deal and the name of the acquiring entity were not disclosed.
Caesars CEO Tom Reeg highlighted the impact of pandemic-related relaxations on the casino giant’s fortunes.
“Our second quarter operating results improved significantly versus the first quarter of 2021 driven by continued strength in our regional markets and a dramatic improvement in results in our Las Vegas segment,” Reeg explained.
As of June 30, Caesars had $14.7bn in outstanding debts, something which Caesars CFO Bret Yunker suggested the company was keen to pay down even further.
“We anticipate that our balance sheet will be further enhanced through improved operating trends and expected asset sale proceeds,” Yunker explained.
“We paid down $325m of debt during the quarter and remain committed to further debt reduction,” he added.
The positive results follow the relaunch of the Caesars Sportsbook earlier this week.