You could say the revenue results at Caesars in 2024 are a mixed bag.
Caesars Entertainment shared its financial results for both the fourth quarter and the full year, giving us a clear picture of the company's performance.
The company released figures for brick and mortar casinos, along with sports betting and Caesars Palace Online Casino.
Fourth Quarter Down Slightly for Caesars
In the fourth quarter, Caesars reported net revenues of $2.80 billion, slightly down from $2.83 billion compared to the same period last year.
The net income stood at $11 million, a notable improvement from a net loss of $72 million in the previous year. This indicates a positive shift in financial health over the past year.
The company’s same-store Adjusted EBITDA, which essentially measures the company's profitability, was $882 million. This was a little lower than the $924 million reported last year.
“Fourth quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong ADRs; and competitive pressures regionally offset partially by the openings in New Orleans and Danville late in the quarter,” CEO Tom Reeg said.
Danville Casino Has Phenomenal First Month
Speaking of Virginia's newest casino, Caesars Virginia had an outstanding first month in Danville.
It outperformed the other two casinos in the state, generating over $28.5 million in adjusted gaming revenue, resulting in more than $5 million in tax revenue. This happened even after its opening experienced a short delay.
Danville City Manager Ken Larking noted that the city had budgeted for the permanent casino to bring in around $2 million to $3 million each month, though this is subject to change.
"We’re excited about what the future holds," said Danville Vice Mayor James Buckner. "Caesar’s Virginia has been a great partner with Danville so far, and we look forward to the future."
Caesars Experiences Slight Decrease Overall in 2024
Looking at the full year, Caesars reported net revenues of $11.2 billion, a slight decrease from the $11.5 billion of the previous year.
They recorded a net loss of $278 million compared to a net income of $786 million last year. This decline was largely due to a $940 million tax-related benefit they received last year, which was not repeated.
Their same-store Adjusted EBITDA for the full year was $3.7 billion, down from $3.9 billion.
Caesars Digital Puts up Strong Performance YOY
On a brighter note, Caesars Digital, which includes their online gaming and sports betting, saw a substantial increase in Adjusted EBITDA, jumping from $38 million in 2023 to $117 million in 2024, thanks to strong performance in online gaming.
This occurred despite showing an Adjusted EBITDA of $20 million, down from $29 million last year.
“Caesars Digital was negatively impacted by sports betting customer friendly outcomes in both October and December offset by over 60% growth in iGaming net revenues,” Reeg said.
The overall number may have been helped by the company’s recent launch of a new feature on its iGaming platform, Caesars Palace Online Casino. "Caesars Pick & Win” is a daily collect-and-win game that gives players a chance to land bonus cash and other prizes on a daily basis.
Caesars Entertainment also launched its first online casino live dealer studio. Players in Pennsylvania can now access it through Caesars Palace Online Casino, Horseshoe Online Casino, and Caesars Sportsbook & Casino.
Caesars CEO Looks Forward to Financially Strong 2025
Overall, while Caesars faced some financial challenges this year, there are clear signs of growth and optimism for the future, especially in the digital space.
“As we look ahead to 2025, the brick and mortar operating environment remains stable and we are expecting another year of strong net revenue and Adjusted EBITDA growth in our Digital segment,” Reeg said.
He also mentioned an expected increase in free cash flow due to lower capital expenditures and interest expenses, which they plan to use to reduce debt.
