Caesars swings to Q3 loss after Rio sale despite revenue rise
Caesars Entertainment reported a 2.3% revenue increase to $2.24bn for the third quarter of 2019, but the operator swung to a loss due to impairment costs from the company’s sale of the Rio All-Suites Resort & Casino for a lower fee than the company’s valuation.
Revenue increased slightly in every vertical except one. Casino made up just over half of the company’s $2.24bn of revenue, at €1.13bn, 2.6% more than in 2018. Food and beverages were the next largest source of revenue at $411m, up 0.7%, with revenue from hotel rooms following closely behind with $409m, up 3.5%.
Management fees contributed $15m to revenue, down 6.3%, while reimbursed management costs brought in $53m, up 3.9%. Other revenue increased 1.9% to $217m. Las Vegas venues brought in $973m for Caesars, up 6.9% from 2018.
Venues in the rest of the US brought in $1.12bn, 0.5% less than in 2018, a decline the company attributed to increased competition in Atlantic City and Southern Indiana. Revenue from locations outside of the US fell 4% to $144m, which Caesars said was primarily due to lower gaming volumes in the UK.