Caesars boosted by online growth

Caesars boosted by online growth

Friday, May 6, 2016 Totally Gaming
CEO Mark Frissora said Caesars is focusing on improvements to technology

Caesars Entertainment Corp (CEC) reported a huge net loss of $308m (€270.0m) during the first three months of 2016, while rival Wynn was back in the black.

CEC saw revenue up by almost seven per cent to $1.17bn during the three months to March 31, with the company attributing the growth to the performance of its Caesars Interactive Entertainment (CIE) social and mobile games business.

The company’s results last year, when it earned $6.8bn, included a multibillion-dollar gain related to the deconsolidation of Caesars Entertainment Operating Company (CEOC), and the results this year include a $237m charge related to the division’s restructuring.

Speaking to investors, chief executive Mark Frissora spoke of Caesars’ desire to make strides on putting forward-thinking gambling technology in its casinos. He said the company had a two-part strategy that entailed creating “unique, appealing gaming environments” and also deploying “distinctive, innovative games unlike traditional casino products”.

Meanwhile, Wynn said that it reversed a quarterly loss, reporting net income of $75.2m in the first quarter compared with a loss of $44.6m in the first quarter of last year.

The company said weakness in Macau continued to sap net revenues, which were down around nine per cent year-on-year to $997.7m.

In the same week that MGM reported gains in the US but big losses in China, Wynn attributed its net revenue drop to a 13.8 per cent decrease from Macau operations that was partially offset by a 0.7 per cent increase from business in Las Vegas.  

TotallyGaming.com says: “Caesars’ balance sheet is a complicated affair, but the company is clearly optimistic about its online offering and a strong non-gambling performance in the US.”

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