Caesars Entertainment has achieved year-on-year growth in Q3, reporting record adjusted EBITDA of $1.04bn and highlighting further success within its digital division. The group’s revenue increased to $2.99bn, up 3.7% from the previous year, with growth evident across all core segments, including digital.
The launch of Caesars Palace Online in Q3 contributed to an increase in total spending on digital by 38.0%, despite the offering only going live halfway through Q3 in mid-August. This resulted in CEO Tom Reeg anticipating the full impact of Caesars Palace Online to be felt in Q4, expressing confidence in the digital business’s performance.
Reeg also discussed plans to enhance the business and support long-term goals, such as achieving $500.0m in EBITDA by 2025, including the potential addition of another skin to the portfolio. The Regional business at Caesars remained the primary revenue source, generating $1.57bn in Q3, up 2.3%, with the segment achieving record adjusted EBITDA of $575m in the quarter.
Las Vegas revenue also saw an increase of 4.0% to $1.12bn, with adjusted EBITDA rising to $482m. In terms of Caesars Digital, revenue edged up 1.4% to $215m, with adjusted EBITDA reaching $2.0m, marking significant improvement from the previous year.
The company’s operating costs totaled $2.23bn, up 1.9%, with casino activities representing the main area of spending. Overall, Caesars’ net profit in Q3 amounted to $74m, a rise of 36.5% from the previous year. Looking at year-to-date performance, the company saw a 8.9% increase in revenue to $8.70bn.
Caesars Digital experienced significant growth, with revenue jumping 115.1% year-on-year to $669m. The managed and branded arm also contributed $239m in revenue, reflecting strong overall performance for the digital business.
Caesars president and chief operating officer, Anthony Carano, expressed optimism about the company’s future, highlighting consumer demand and ongoing strategic initiatives as drivers of long-term EBITDA growth. With a strong finish to 2023 anticipated, Caesars Entertainment remains focused on driving operational efficiencies and maximizing returns on capital projects.