Caesar's highlights the influence of its New Orleans, Virginia properties, and convention group business in Las Vegas.
Loose Lips Sink Ships, But They Can Also Rebuild Empires: Caesars Entertainment's Q4 2024 Earnings Call
Unveiling the riches of Caesar's treasure chest
Buck Wargo, here to deliver the deets on Caesars Entertainment's Q4 2024 earnings call. Buckle up, because this baby's gonna be a rollercoaster ride!
On the 25th of February, 2025, the big kahuna - that's Caesars Entertainment for you - gabbed about their financial musings, focusing on their regional operations and Las Vegas properties. The expansions in New Orleans and permanent Caesars Virginia, popped up like icons on the map in October and December respectively, according to their merry COO and President, Anthony Carano.
Now, Vegas, baby, Vegas! Profits in Sin City weren't exactly exploding, but they certainly didn't flop. The fourth quarter's same-store net revenues clocked in at $1.1 billion, with adjusted EBITDAR fancy-talking currency hovering around $478 million, dipping a mere 1% compared to the previous year. Ant's verdict? "You gotta hand it to Vegas! Even with the F1 debris, we still managed to impress!" Occupancy wise, this city that never sleeps shined with an occupancy rate of 96%, dropping a smidge from the previous year. Vegas, uber-Vegas! If you dig deeper, you'll find that group business made up a hefty 16% of occupied room nights, with recent investments in rooms and gaming assets delivering unparalleled returns.
Anthony's cousin in the regional segment, net revenues slid 1%, and adjusted EBITDAR dived a more precipitous 5%. However, the rate of decline in EBITDAR improved sequentially versus the second and third quarters. This region's had its fair share of bumps in the road, but with the successful opening of New Orleans and Danville, Virginia, Caesars is all about the pom-poms and cheerleaders. "Booyah!"
Ant said that 2024 was the year of the capital investment, an intense cycle that began post-merger in July 2020. These completed capital projects are expected to make a big splash in 2025, and beyond, riding the waves of competitive pressures in the regional segment.
"The flow of free cash, baby, is about to get turbulent and dev-ee-ne in 2025 and 2026!" exclaimed CEO Tom Reeg, ever the optimist. Vegas had a stellar Q4 compared to the previous year; cash room revenue merely dipped less than 1%, a real miracle given the absence of the F1 business. Food and beverage revenue also smashed its past records, slot coin-in established a new high-water mark, and table win climbed, thanks to a superior hold.
The regional segment has its challengers, with a $500 million trailing EBITDA, squaring off against new competitive threats. But the warrior within repeats, "Fight for your right to party, regional properties!" Reeg touted impressive Virginia performance, which effectively doubled the revenue after doubling capacity. Alas, New Orleans had a bumpy start due to a deadly terror attack on New Year's Eve, a canceled convention, and the worst snowstorm in eons. The city's been a funhouse ride, but expectations are high for a bountiful 2025, when the initial chaos fades away, leaving behind the glimmers of potential riches.
Digital revenue, on the other hand, proclaimed all-time records in net revenue, EBITDAR, and cash flow. And 2025's looking greedy... for more green. Bet on Caesars stacking quarters on quarters, leading to their envisioned $500 million EBITDAR goal.
So there you have it, folks! Caesar's Q4 2024 earnings call - a mirrored reflection of the casino titan's ups and downs, hopes and fears, victories and vanquishes. Buck Wargo's in your corner, spilling the tea - or should I say, the cocktails! Get out there and make that green rain pour!
Buck Wargo shared insights from Caesars Entertainment's Q4 2024 earnings call, highlighting the casino-and-gambling industry's intricacies in Las Vegas and beyond.
Discussing the Vegas scene, Wargo mentioned notable figures in casino-personalities like Antony Carano, COO and President, and CEO Tom Reeg, with their shared optimism about the city's casino-games culture.
