Caesars Q3 2020 Earnings Report
Key Takeaways
Caesars Entertainment, Inc. reported net revenues of $1.4 billion and a net loss of $926 million. The company completed its merger with Former Caesars on July 20, 2020, and announced an offer to acquire William Hill plc. Operating results continued to improve sequentially, with regional markets outperforming destination markets.
Net revenues increased by 52% on a GAAP basis but decreased by 34% on a same-store basis compared to the prior year.
Net loss was $926 million, compared to net income of $37 million in the prior year.
Same-store Adjusted EBITDA was $463 million, compared to $810 million in the prior year.
Caesars announced an all-cash offer to acquire William Hill plc and raised $1.9 billion of new equity.
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Caesars Revenue by Segment
Forward Guidance
Caesars Entertainment is optimistic about the eventual recovery of travel and tourism in the U.S., especially in Las Vegas. The company continues to have a strong liquidity position.
Positive Outlook
- Sequential improvement in operating results.
- Outperformance of regional markets compared to destination markets.
- Successful raising of $1.9 billion of new equity.
- Strong liquidity position with revolvers undrawn and significant unrestricted cash.
- Agreement to sell Tropicana Evansville for $480 million.
Challenges Ahead
- Impact of COVID-19 on the company's business, financial results, and liquidity.
- Potential adverse reactions to the merger with CEC.
- Possibility that the proposed acquisition of William Hill is not consummated.
- Risks associated with increased leverage and rental expense.
- Competitive responses to the Merger and the proposed acquisition of William Hill.