Caesars Entertainment disclosed third-quarter earnings reflecting a mixed but cautiously optimistic outlook for Las Vegas operations and broader business segments, according to statements by CEO Tom Reeg and other company executives in the company’s press release.
The company reported a decline in Las Vegas visitation that contributed to a third-quarter revenue drop. Hotel occupancy in Las Vegas fell to 92% in the quarter from 97% the previous year, Anthony Carano, the president and chief operating officer of Caesars, said in the earnings call.
Key Takeaways:
- Caesars reports mixed Q3 earnings with a focus on recovery efforts in Las Vegas
- Hotel occupancy declines slightly but remains above 90%, with dynamic pricing strategies in place
- Las Vegas segment delivers $379 million in adjusted EBITDA, showing resilience despite softer summer visitation
Average daily room rates also declined by 5% year-over-year. Despite these decreases, Carano described the results as “solid” in light of ongoing challenges.
They noted sequential improvements, particularly pointing to September as a strong month and expressing confidence that group bookings are on track to generate record EBITDA in 2025.
Optimistic Outlook for Las Vegas Drives Reinvestment
Reeg emphasized that Las Vegas is adjusting pricing dynamically to meet demand, responding to criticisms of overpricing on the Strip.
“On the days you read those stories, you could have gotten a room for $29, plus a resort fee,” Reeg said, highlighting the diversity of available accommodations ranging from budget to premium experiences. The company maintained occupancy above 90% in the third quarter despite pricing pressures.
Caesars also compared its current adjusted EBITDA levels favorably against historical pre-merger figures, projecting a faster return to prior revenue levels.
The company is continuing investments in key properties, including Flamingo Las Vegas, which recently added new amenities such as a pool experience. Planned upgrades at Caesars Palace and Cromwell underline the company’s efforts to enhance its guest offerings as part of sustaining momentum.
Steady Regional Gains and Advancing Digital Platform
Caesars reported consolidated net revenues of $2.9 billion and adjusted EBITDA of $884 million for the quarter, down from $996 million a year earlier. The Regional segment delivered $506 million in adjusted EBITDA on 6% net revenue growth, with improved flow-through from targeted reinvestment in Caesars Rewards customers.
The Digital segment generated $311 million in net revenue and $28 million in adjusted EBITDA. Results were pressured by unfavorable NFL outcomes in September, the annualized sale of the World Series of Poker (which contributed about $8 million in Q3 2024), incremental state taxes, higher acquisition marketing and some bad debt. Digital’s adjusted EBITDA declined from $52 million in Q3 2024.
Caesars also continued expanding its iGaming content portfolio, partnering with AGS for exclusive slot launches across land-based and online channels.
