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After reaching its highest revenue of all time ($9.6 billion) in 2021 and setting the scene for an even more lucrative 2022, Caesars Entertainment has now published its first-quarter results. Did the Reno-based hotel and casino entertainment company kick off 2022 on a similar note? Let’s find out.
21% Revenue Boost for Q1 2022
For starters, Caesars Entertainment’s first quarter 2022 report shows the company managed to generate $2.29 billion in revenue during the period that ended on March 31. Compared to last year’s $1.79 billion in revenue, the new number marks an increase of close to 21% for the same three-month period under review. One of the main triggering factors for the revenue increase was represented by Caesars’ operations in Las Vegas. These went up close to 84% to $914 million in Q1 2022 from $497 million in Q1 2021.
The boost was also triggered by the company’s regional operations which went up 14% on a year-on-year basis, reaching $1.36 billion in the first quarter of the current year from last year’s $1,19 billion. As expected, pari-mutuel commissions and casino stood for $1.29 billion of the total recorded revenue, while hotel operations represented $383 million of the amount. Food and beverage generated $339 million, while other operations added $278 million to the final numbers.
$680 Million in Net Losses
The company has also reported a 52.5% rise in net losses for Q1 2022 compared to Q1 2021, from $423 million to $680 million. Caesars Digital generated $576 million in net losses during the first quarter of the current year from $8 million in the same period of last year. Managed and branded operations recorded a loss of $211 million in Q1 2021, after a positive $15 million net income in 2021. Corporate and other operations added $185 million to the total net loss, from a net loss of $428 million in 2021. Las Vegas and regional operations did well, bringing in a net income of $168 million, respectively, $124 compared to a net loss of $67 million and a net income of $65 during the first quarter of 2021.
As for the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) numbers, Caesars’s report speaks about $296 million for the same period, compared to $521 million for Q1 2021. The adjusted EBITDA that excludes the Caesars Digital segment reached $850 million in Q1 2022 compared to $530 million in Q1 2021.
The group’s chief executive officer Tom Reeg said the first-quarter results are a reflection of their “sequential improvement” that took place on a monthly basis in terms of revenues and EBITDA. The Las Vegas segment also reached an all-time record for Q1 EBITDA, while the regional segment generated “solid EBITDA and margin growth”. Reeg added the company feels optimistic about a well-balanced rest of the year, in the context of the current healthy consumer trends.
At the end of April, Caesars partnered with Emagine in a decision to rebrand the Royal Oak Sports Lounge. The company also signed a multi-year sponsorship deal with the New York Mets, turning into the official sports betting partner of the popular franchise.