Caesars reports significant growth in Q3 as Hession is appointed CFO

Caesars reports significant growth in Q3 as Hession is appointed CFO

Wednesday, November 12, 2014

Caesars Growth Partners (CGP) has cited the success of its interactive business as the key reason behind a significant jump in revenue during the three months through to September 30, while parent company Caesars Entertainment Corporation has appointed Eric Hession as its new chief financial officer. 

CGP reported overall net revenue of $458.8m (€367.7m) in the third quarter, a total that represents an increase of 31.1% on the $246.9m generated in the corresponding period last year.

Overall net income from operations jumped by 74.5% from $46m in Q3 of 2013 to $82.1m in the latest quarter, while net income from continuing operations increased by 51.5% to $70.7m.

CGP’s total adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the third quarter totalled $105.4m, up 33.9% on the same period last year.

The company put this widespread growth down to a significant increase in revenue within its Caesars Interactive Entertainment (CIE) subsidiary. The division generated $161.6m in revenue during the third quarter, which is more than double the $78.9m collected in the same period in 2013.

Adjusted EBITDA from within the CIE subsidiary totalled $53.4m, which is up 74.5% from $30.6m posted in the same quarter last year. However, net income plummeted 117.9% to a loss of $2.9m while income from operations slumped 11.5% to $20.1m.

Elsewhere, CGP’s casino properties and developments business generated $342.2m in revenue during the third quarter, up 31.3% on the previous year, while adjusted EBITDA jumped by 17% to $56.3m. However, income from operations fell 53.6% to $10.8m.

Mitch Garber, chief executive officer of Caesars Acquisition Company, said that the company’s ongoing strategy to achieve further growth is proving to be successful and it expects to achieve more success in the fourth quarter and beyond.

 “Our Interactive Entertainment business continues to deliver impressive results, primarily from our market leading social and mobile games business,” Garber said.

“Overall, we are confident that our strategy of developing new projects in key markets and investing capital to expand and enhance our existing casino and interactive portfolio will drive growth and solid operating results for CGP.” 

Meanwhile, parent company Caesars Entertainment Corporation has named Hession as its new chief financial officer. After previously serving as senior vice-president and treasurer, Hession will replace the outgoing Donald Colvin, who will retire from the role of chief financial officer effective December 31. 

Caesars Entertainment made a point of noting that Colvin’s exit is not related to the firm’s financial predicament.

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