Caesars reports big financial declines in Las Vegas in SEC filing
Revenue declined by 56 percent to 58 percent compared with a year ago at Caesars Entertainment Corp.’s five Nevada properties opened since June 4, the company disclosed Tuesday.
In a filing early Tuesday with the Securities and Exchange Commission, Caesars also said operating income fell 110 percent to 120 percent compared with the prior year through last Wednesday. Cash flow was off 70 percent to 80 percent and profit margins fell 3,400 basis points for operating income and 1,700 points for adjusted cash flow for the period.
The company reopened Caesars Palace and the Flamingo on June 4 and Harrah’s Las Vegas on June 5 after being closed 78 days in an effort to slow the spread of the COVID-19 pandemic. The other reopened property is at Lake Tahoe.
When gaming regulators allowed the reopening of casinos in the state, they ordered caps at 50 percent of normal capacity and mandated several health and safety protocols.
According to the SEC filing, Caesars’ regional properties in the South and Midwest are faring better than its Las Vegas counterparts. The filing provided similar financial comparisons for the reopenings of Harrah’s Bossier City and Harrah’s Louisiana Downs in Louisiana, Harrah’s Gulf Coast and Horseshoe Tunica in Mississippi, Harrah’s North Kansas City in Missouri, and Horseshoe Council Bluffs in Iowa.
Caesars reported revenue flat to up 2 percent for the regional properties, operating income up 60 percent to 70 percent, adjusted cash flow up 35 percent to 40 percent, and profit margins up 1,000 basis points.
The Louisiana properties opened May 18, Mississippi on May 21, and Iowa and Missouri on June 1.
Several gaming industry analysts have said they expected regional casinos to outperform traditional fly-in markets like Las Vegas because customers would be more reluctant to be on planes for several hours than to drive 30 minutes to an hour to a nearby casino.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
