Caesars Entertainment (CZR) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenues were $2.9 billion, down up to 4% year-over-year, with Adjusted EBITDA of $1 billion and net income of $9 million, driven by record non-gaming Las Vegas and digital segment growth, but offset by regional competition and construction disruption.

• Las Vegas delivered $1.06 billion in net revenue and $472 million in Adjusted EBITDA, down 2% year-over-year, with record hotel and F&B cash revenue and 97.1% occupancy.

• Regional segment Adjusted EBITDA was $498 million, down 13% year-over-year, impacted by competition, tough comps, and construction, notably in New Orleans and Reno.

• Caesars Digital posted $303 million in net revenue (up 41% year-over-year) and a record $52 million Adjusted EBITDA, with iGaming revenue up 83% and sports betting revenue up 36%.

• Major asset sales included the World Series of Poker and LINQ Promenade, with proceeds used for debt reduction and share buybacks.

Financial highlights

• Q3 2024 Adjusted EBITDA margin was 34.8%–35%, flat year-over-year.

• Las Vegas EBITDA margin was 44.4%, also flat year-over-year.

• Digital segment trailing 12-month EBITDA reached $126 million.

• $1.1 billion senior unsecured bond issued at 6% to refinance higher-cost 2027 maturities.

• $140–$141 million share buyback executed in Q3, with $500 million authorization remaining.

Outlook and guidance

• Optimism for Q4 and 2025 driven by strong Las Vegas occupancy, ADR trends, and new property openings in New Orleans and Danville.

• Regional segment expected to see tailwinds from new openings, but 2025 outlook is flat to slightly down due to ongoing competition.

• Digital business expected to exceed $500 million EBITDA target, with continued strong growth in iGaming and sports betting.

• Group and convention business in Las Vegas pacing to set new records in 2025.

• CapEx to decline significantly post-2024, with 2025 budgeted at $600–$650 million.