Caesars Entertainment (CZR) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues were $2.83 billion, down 1.7% year-over-year, with a net loss of $102 million to $122 million, mainly due to impairments, higher interest expense, and the absence of a prior-year tax benefit.

• Adjusted EBITDA for Q2 2024 was $1.0 billion, nearly flat year-over-year, with strong Las Vegas and Caesars Digital performance offsetting Regional declines.

• Caesars Digital delivered net revenues of $276 million, up 27.8% year-over-year, and record adjusted EBITDA of $40 million.

• Regional segment recorded $118 million in impairment charges due to increased competition and lower projected cash flows.

• Las Vegas segment set a same-store Q2 net revenue record of $1.1 billion and adjusted EBITDA of $514 million, up 1.2% year-over-year, driven by high occupancy and improved table games hold.

Financial highlights

• Q2 2024 net revenues: $2.83 billion (down 1.7% year-over-year); six-month revenues: $5.57 billion (down 2.4%).

• Q2 2024 net loss: $102 million to $122 million; six-month net loss: $244 million to $280 million.

• Adjusted EBITDA: $1.0 billion for Q2 2024 (flat year-over-year); $1.85 billion for six months (down from $1.97 billion in 2023).

• Q2 2024 diluted EPS: $(0.56) vs. $4.26 in Q2 2023.

• Interest expense for Q2 2024 was $594 million, up from $586 million in Q2 2023.

Outlook and guidance

• Management expects continued growth in Caesars Digital as new jurisdictions legalize sports betting and iGaming.

• Las Vegas expected to post growth in the second half of 2024, with strong occupancy and pricing trends; group and convention bookings for 2025 are pacing mid-single digits above 2024.

• Regional segment anticipated to remain challenged in Q3 due to ongoing headwinds, with growth expected in Q4 as new properties open.

• 2024 full-year capital expenditures are forecast at $800 million, excluding certain projects.

• Liquidity remains strong with $830 million in cash and $2.1 billion in available revolver capacity as of June 30, 2024.