Caesars Entertainment predicts digital revenue and earnings growth for Q4, with an initial report showing a slight increase in overall revenue. According to a Form 8-K filed with the US Securities and Exchange Commission, the early figures cover the last three months of 2023. Caesars has released both lower and higher estimates for several key figures and business segments.
The group revenue for the period is expected to be between $2.82bn and $2.84bn, both of which surpass the $2.77bn adjusted revenue recorded in Q4 of 2022. It was noted that this adjusted total reflects the Rio All-Suite Hotel & Casino operations in Las Vegas prior to divestiture. The actual revenue in 2022 was $2.82bn, which is towards the lower end of the Q4 2023 estimated results.
Las Vegas operations revenue is projected to be between $1.08bn and $1.09bn, suggesting a decrease from the adjusted $1.10bn posted in the previous year. Digital revenue, however, is expected to be between $303m and $305m, marking a 27.0% increase from 2022.
Caesars anticipates that the digital division will be EBITDA-positive, marking the first consecutive quarter of positive results. Other segments, including Las Vegas and regional operations, are expected to see lower adjusted EBITDA.
The forecast for group net loss suggests a loss of between $157m and $4m, indicating it could potentially reach a profit if it falls at the higher end of these estimates. The digital business is expected to improve from a loss of $35m in the previous year to a loss between $9m and $7m in Q4.
Caesars emphasized that the figures are preliminary and the full Q4 and 2023 results will be published on February 20. These preliminary results indicate positive growth in the digital business and notable changes in revenue across various segments.