Caesars hit by losses despite revenue growth in first half
Caesars Entertainment has reported a net loss of $532m (£437.0m/€474.9m) for the first half of 2019, despite also experiencing a year-on-year increase in net revenue.
The US casino giant generated revenue of $4.34bn during the six months to June 30, up from $4.09bn in the corresponding period last year.
Caesars’ casino operations remained by far the biggest source of income during the first half, with revenue rising from $2.04bn last year to $2.21bn – driven by its operations in the Las Vegas market
There was also revenue growth across all areas of Caesars’ business, with food and beverage revenue climbing from $774m to $805m and rooms revenue from $755m to $793m.
However, Caesars reported an increase in operating expenses in the first half, as it spent a total of $3.83bn during the period. Direct casino costs were up from $1.13bn to $1.25bn, while property, general, administrative and other expenses jumped from $883m to $927m.
Caesars also noted an additional charge of $50m in relation to the impairment of intangible assets, although it did see depreciation and amortisation costs drop from $548m to $488m.
Income from operations increased from $407m to $509m, but higher losses in certain areas of the business meant net loss jumped from just $5m in the first half of last year to $532m. Loss before tax also rocketed from $28m to $622m.