Caesars returns to profit in Q1 despite revenue drop
Caesars Entertainment Corporation (CEC) reported $123m (£99.7m/€113.7m) in comprehensive profit for the first quarter of 2020, despite experiencing a year-on-year drop in revenue due to enforced casino closures as a result of the novel coronavirus (Covid-19) outbreak.
Net revenue for the three months through to March 31, 2020, totalled $1.83bn, down 13.6% from $2.12bn in the corresponding period last year.
CEC said the business had performed well over the opening two months of the year, with revenue in January and February rising by 12.0% year-on-year, primarily due to growth in Las Vegas and Indiana.
However, revenue in March was approximately half that of the previous year due to temporary property closures across the US.
Shortly after the end of Q1, Caesars announced that it was to furlough around 90% of its staff to help mitigate the impact of the closures. The operator, which said the furloughs would apply to US-owned properties and corporate staff, also launched a new assistance fund to support employees and local communities hit by the outbreak.