Caesars says 4th-quarter revenue hurt by Las Vegas shooting
Caesars Entertainment Corp. said Wednesday that its Las Vegas revenue fell in the fourth quarter after the Oct. 1 massacre, but the company gave an upbeat outlook for 2018.
Las Vegas same-store net revenue, including its off-Strip property Rio, declined 3.9 percent to $873 million for the quarter, the company reported Wednesday after the market closed.
Same-store adjusted earnings before interest, taxes, depreciation, amortization and rent in the city fell 10 percent to $294 million. Las Vegas-based Caesars owns nine casinos in Las Vegas, including eight on the Strip.
Total company same-store net revenue was flat for the quarter at $1.96 billion as other markets grew. Caesars owns 47 properties in 13 U.S. states and five countries.
“U.S. regional revenue improvement was offset by unfavorable year-over-year hold primarily at Caesars Palace and a challenging environment in Las Vegas post Oct. 1,” the company said in a statement.
Caesars posted quarterly net profit of $2 billion, driven by $2.03 billion from U.S. tax reform and bankruptcy restructuring, the company said. Caesars emerged from bankruptcy in early October.
Caesars’ same-store net revenues for the full year rose 0.8 percent to $8.1 billion while adjusted earnings before interest, taxes, depreciation, amortization and rent rose 3 percent to $2.2 billion.
The company posted full-year margins of 35.5 percent for Las Vegas and 27.1 percent enterprise-wide, the highest in over a decade.
The company plans to invest up to $600 million in room renovations and other same-store projects in 2018 and up to $250 million in new projects like a convention center outside Caesars Palace.
The company also said it plans to offer new esports initiatives this year.
Shares of Caesars rose 90 cents, or 7.2 percent, to $13.40 after hours.
Contact Todd Prince at tprince@reviewjournal.com or 702-383-0386. Follow @toddprincetv on Twitter.