Caesars CEO to step down

2 November 2018

Caesars Entertainment Corporation has begun its search for a new chief executive after it was confirmed that Mark Frissora is to stand down from the role early next year.

Frissora will continue as CEO and president until February 8, with Caesars to seek a replacement in the time being.

Frissora took on the role at Caesars in July 2015 having initially come on board in January, just two days after the firm filed for bankruptcy. He went on to successfully steer the company through some of its most turbulent times.

Prior to joining Caesars, Frissora was chairman and CEO of vehicle rental firm Hertz Global 2006 until late 2014, and also had a six-year spell as chairman and CEO of Tenneco, a global supplier of automotive emission control and ride control products.

“I have been privileged to lead this iconic company and am proud of all that our team has accomplished,” Frissora said, “We have improved our margins significantly and created enterprise value which enabled the successful reorganisation of our Caesars Entertainment Operating Company subsidiary.

“I am confident that the company is well positioned to thrive and grow in the future. I am committed to maintaining stability and operating discipline during this transition.”

During his time at the helm of Caesars, Frissora has implemented strategies that have led to a 900 basis points increase in adjusted EBITDAR margin, as well as a near-$800m (£614.7m/€699.1m) increase in adjusted EBITDAR.

Frissora has also helped the company cut the cost of its debt by 400 basis points and enabled it to expand into markets such as Dubai and Mexico.

Jim Hunt, chairman of the board at Caesars, praised Frissora’s time as CEO: “Under Mark's leadership, the company has significantly improved margins and profitability while simultaneously increasing customer and employee satisfaction.

“We are grateful for his leadership and numerous contributions and are optimistic for the future.”

Confirmation of Frissora’s departure came as the company reported its financial results for the third quarter, during which net revenue rocketed by $1.99bn to $2.19bn.

This was due to the inclusion of the results from CEOC, which emerged from bankruptcy in Q4 of 2017, and the results of the Centaur Holdings business that Caesars acquired in July this year.

Operating profit increased by 176% year-on-year to $232m, while net income attributable to Caesars came in at $110m, compared to a net loss of $433m in the corresponding period year.

Elsewhere, Caesars was this week unveiled as the first founding partner of the Las Vegas Stadium, the future home of the Las Vegas Raiders NFL American football franchise. Caesars plans to use the link-up to offer special customer experiences.

In recent days, Caesars has also announced partnerships with the NFL’s Baltimore Ravens, the Philadelphia 76ers NBA basketball franchise and the New Jersey Devils NHL ice hockey team.

Image: Mark P. Frissora