Caesars figures boosted by hotel performance

Hotel revenue helped Caesars Entertainment Corp (CEC) to record a 14.7% increase in net revenue and reduce net loss over the course of 2015.

In its preliminary results, Caesars said that net revenue for the year to December 2015 was $4.5 billion (€4.1 billion), with the figure for the final quarter up 8.7% to $1.12 billion.

The company said that quarterly adjusted earnings for continuing CEC grew 51.7% year-on-year to $305 million and full-year adjusted earnings increased 46.1% to $1.3 billion, primarily driven by net revenue increases, marketing and operational efficiencies, and improved hotel customer mix.

Caesars Entertainment Operating Co (CEOC), which the company placed into a Chapter 11 bankruptcy reorganisation at the start of 2015, was excluded from the reported results. The operating unit includes its major Las Vegas properties, as well as nearly two dozen regional casinos.

When the operating unit's net revenue of $4.7 million was factored into the results, the company's overall 2015 net revenue increased 6% to $9.1 billion.

“Caesars achieved solid operating momentum throughout 2015,” said Mark Frissora, president and chief executive of CEC.

“Including CEOC's results, the enterprise experienced its best full-year of operating results since 2007.

“These results largely reflect higher hotel revenues, with cash ADR up double-digits, and increased marketing and operational efficiencies, which delivered approximately $350 million in incremental EBITDA enterprise-wide year-over-year.”

Frissora said that higher hotel revenue, including a double-digit increase in average daily room rates, were reasons for the 2015 financial results.

Frissora said: “The ability to generate this level of sustained growth is a testament to the success of our low-cost, high-quality operating model.

“We remain focused on executing a balanced agenda of enhancing revenue growth while driving productivity gains to improve margins and cash flow, while increasing long-term value for our stakeholders.”

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