Caesars Entertainment reported its third-quarter results on Monday, encompassing the three-month period that ended on September 30, 2022. The company saw sustained improvement across the board with GAAP net revenues hitting $2.9 billion compared to $2.7 billion over the same period from a year before. GAAP net income also improved for the company and stood at $52 million, which was better than the $233 million reported back in Q3 2021.
Third-Quarter Results Hold Steady for Q3
Adjusted EBITDA was also much better, reaching $1 billion compared to $880 million. The news was welcomed by Caesars Entertainment CEO Tom Reeg who made a statement, commenting on the latest company results. Reeg said that the latest results reflected the company’s commitment to recovery and its customers, and also established a new quarterly record for consolidated adjusted EBITDA. He added:
Results in the quarter also reflect a new quarterly record for our brick-and-mortar properties led by a new all-time high third-quarter EBITDA performance in our regional segment and continued strength in Las Vegas.
Caesars Digital is also posting solid results for the company and a smaller-than-expected EBITDA loss, Reeg said. The company had $13.3 billion in aggregate principal amount of debt outstanding, the firm detailed on its balance sheet. This is true as of September 30, 2022. Total cash and cash equivalents stood at $944 million for the company, excluding $297 million in restricted cash.
Caesars Entertainment CFO Bret Yunker also reported on the company’s results, confirming Reeg’s remarks that it has been a good quarter for the company:
We continued to reduce debt during the quarter using net asset sale proceeds and free cash flow totalling $880 million. In early October, we successfully upsized our pro rata bank facilities to $3 billion, including a new $750 million Term Loan A and a $2.25 billion Revolving Credit Facility that mature in 2028.
Flamingo Not to Be Sold, Caesars Boss Confirms
Meanwhile, Reeg detailed some of the company’s other plans and changes in existing ones. For one, Reeg used the third-quarter earnings conference call to quell some rumors, including the one that has been circulating about the company ending up selling a Las Vegas Strip property. This will not be happening, although many industry observers hazarded a guess that Flamingo could be sold for as much as $1 billion by the company, as it seeks to expand in new and emerging markets.
However, Reeg did confirm on the call that Caesars had tried to sell the property for the suggested price tag, but potential buyers were reluctant to bite, as the Flamingo would also need a significant refurbishment.
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