Caesars benefits from digital growth

Caesars benefits from digital growth

Friday, May 8, 2015 Totally Gaming
Caesars filed for bankruptcy in January

US casino operator Caesars Entertainment Corporation (CEC) has said that improved digital gaming performance helped it post a 21 per cent net revenue increase year-on-year for Q1 2015. 

The total of $1.1bn (€979.1m) for continuing operations was reported just four months after the company filed for bankruptcy and deconsolidated subsidiary Caesars Entertainment Operating Co (CEOC).

CEC, which did not include CEOC figures after January 15, has in part put the overall net revenue climb down to a 42 per cent upturn in net revenue from its Caesars Interactive Entertainment (CIE) operations to $177m. 

Net income for CEC totalled $7.72bn, compared to a $386m loss for the same period last year, while casino revenue is up 22 per cent to $549m. 

“Our first quarter results were driven by strength in CIE's social and mobile games business, contributions from new hospitality amenities and favourable hold,” said CEC chairman and CEO Gary Loveman.

“These factors, coupled with improved margins due to cost savings initiatives, drove improved adjusted EBITDA performance across all segments of our business.

“While we are pleased with our first quarter performance, we are focused on driving further same-store revenue growth, effectively managing expenses and making critical hospitality investments to position the business for long-term growth."

Meanwhile, gaming solutions provider Scientific Games has reported significant year-on-year growth in Q1 – its first full quarter since the acquisition of Bally for $5.1bn.

Scientific said that revenue in the period amounted to $658.7m, up from $388.1m last year.

Operating income improved from a loss of $12.1m in the first quarter of last year to a positive figure of $18.1m in the opening period of this year.

Gavin Isaacs, president and chief executive of Scientific Games, said: “In our first full quarter following our merger with Bally, we made significant progress in our strategies to integrate Bally operations and unify our organisation.

“Our focus on developing new player entertainment experiences that engage players and drive growth for our customers is equally matched by our focus on realising expected integration cost savings and increasing our free cash flow.

“The process of integrating Bally and Scientific Games is ahead of schedule.”

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