Caesars forecasts $30m in online EBITDA for Q4 2023

Caesars Entertainment has released a brief Q4 trading update ahead of schedule after confirming a tender for $3.4bn of its outstanding bonds.

The Las Vegas-headquartered operator detailed its “current expectations” for net revenue, net income, and adjusted EBITDA in a filing with the Securities and Exchange Commission (SEC).

Caesars stressed the possibility it may adjust the reported figures and as it has not yet completed its annual tax provision or reached final conclusions in terms of intangible assets and goodwill.

Caesars stated: “The significance of potential adjustments to this preliminary financial information could result in actual net income (loss) to be outside of the ranges provided for the three months ended December 31, 2023.”

In terms of net revenue, Caesars provided guidance for Q4 of between $2.81bn and $2.84bn, with between $303m and $305m coming from digital operations.

Total Q4 group net revenue in 2022 landed at $2.82bn while the digital arm returned $237m.

Elsewhere, the operator announced expected downturns in revenue from Las Vegas, while regional operations should remain on par with 2022.

Net losses are expected to shrink from Q4 2022’s $148m to between $157m and $4m, with the digital division further closing the gap on losses.

Q4 2022’s saw the arm reported a loss of $35m, with the firm guiding a loss of between $9m and $7m for Q4 2023.

Adjusted EBITDA for digital is also projected to improve, up from a $5m loss in Q4 2022 to between a $28m and $30m positive in the latest reporting period.

Group adjusted EBITDA is expected to fall below last year’s figure of $957m, with a range of $920m to $940m provided due to decreases in Las Vegas and regional operations.

Alongside the financial filing, Caesars announced a cash tender offer for all of its outstanding 6.25% senior secured notes due 2025.

The offer is scheduled to expire on January 30, 2024, but it could be extended or terminated, the operator noted.