On a recent third-quarter earnings call, Caesars Entertainment CEO Tom Reeg announced that the company has changed course and will not sell one of its Las Vegas holdings, as has been speculated for over a year.
Reeg apologized to shareholders for the back-and-forth uncertainty, and cited unfavorable market conditions as well as an increase in cash flow for the asset that was that was supposed to be on the auction block; the company never named the property directly, but many believed that it was the Flamingo, based on other moves Caesars had made in recent months.
Despite the fact that Caesars never gave detailed information on the matter, Reeg admitted that it “created an unnecessary overhang in the stock.”
Overall, the company posted positive results as compared to the same period last year, bringing in $52 million in net income on revenues of just under $3 billion, up from the net loss of $233 million that was reported for 3Q 2021.
Its mobile sports betting offshoot, Caesars Digital, performed very well, posting an increase in revenue of over 120 percent. Its losses also decreased to $63 million, as opposed to $190 million from the same period last year.
The CEO noted that the department was cash flow positive last month—which wasn’t included in the third-quarter report—and was generally bullish on its prospects for the rest of the year and beyond, given the expansion of both mobile sports betting and iGaming throughout the country.
The Las Vegas market, in which the company operates nine properties (and will continue to, given Reeg’s comments), was also very healthy—Reeg said that despite fears of recession, he couldn’t “point you to anything in our business, in or out of Vegas, that shows any slowdown in the consumer. So, we feel very good.”
