Caesars Entertainment reported a net loss during its 2024 fiscal year following a drop in group revenue. However, the gaming giant remains confident in the long-term profit targets for its digital arm after the division reported impressive growth.
Group revenue for the 12 months to 2024 exceeded $11.2 billion (£8.89 billion/€10.71 billion). This is 2.5% lower than the previous year, according to data published on February 25th.
Caesars attributed this primarily to its Las Vegas and regional segments, as the divisions showed declines, in 2024. Managed and branded revenue also fell, although there was some positive news from the digital segment.
Revenue from the digital business, which includes igaming and online sports betting, increased by 19.5%. This continues a growth trend seen in recent years, but the trajectory has not been as high as seen in 2023 (77.6%).
Caesars: Goal is to reach US$500 million by 2025
While digital growth hasn’t been as impressive as other recent years, Caesars remains confident in its long-term profit goals.
In May 2023, Caesars declared a two-year digital EBITDA target of $500 million. Now, CEO Tom Reeg has stated that this should become a reality by the end of 2025.
For context, digital adjusted EBITDA in 2024 totaled US$117 million, an increase of 207.9% compared to the US$38 million recorded in 2023.
“All of our goals remain the same. Remember, we set our goals of reaching $500 million before we even launched Caesar Sports. These goals haven’t changed since they were just numbers on a spreadsheet almost four years ago,” he said.
Caesars High Hopes for Las Vegas Area
Regional properties, the group’s biggest source of revenue, saw a 4.1% drop in revenue to $5.54 billion last year. Reeg said, however, that this segment continues to improve, with a “solid and stable” customer base.
This division will also likely be helped by the completion of the Caesars New Orleans expansion and the opening of Caesars Virginia in December. According to Reeg, this prepared the regional segment for a more positive performance this year.
As for Las Vegas, revenue fell 1.5%, recording US$ 1.34 billion. Caesars attributed this, in part, to a difficult comparative year, as 2023 included the first Formula 1 race in the city.
However, Reeg again noted a stable customer base for the segment. He also referenced the addition of several other amenities that should support the business in the future.
“We opened Gordon Ramsay’s Burger and Pinky’s at Flamingo, activating the Strip facade at Flamingo for the first time since we owned Caesars. We opened Caramella’s at Planet Hollywood.’
“We still have returns from our hotel projects. We have an anniversary, the opening of the balcony rooms in Versailles. So we feel really good about what 2025 will look like,” he said.
Also in 2024, US$274 million came from managed and branded operations, a drop of 10.8%. Another $5 million was reported in corporate and other losses.
Overall, casino revenue was 1.6% lower at $6.27 billion. Additionally, hotel revenue fell 3.5% to $2.02 billion and food and beverage revenue fell 0.7%.
Net loss reaches US$ 278 million
In terms of expenses, total operating costs were 1.3% lower in the year, at US$8.94 billion. Other expenses exceeded US$2.43 billion, leaving a pre-tax loss of US$124 million, greater than the US$60 million the previous year.
Caesars paid $87 million in taxes – compared to 2023, when it received $888 million in benefits – and also booked $67 million in losses from non-controlling interests.
Thus, it ended 2024 with a net loss of US$278 million, in contrast to a profit of US$786 million in 2023. Adjusted EBITDA was also 4.6% lower in the annual comparison, to US$3.72 billion.
What happened in Q4 2024 to Caesars?
In terms of the last quarter of 2024, total revenue was 0.9% lower, reaching US$2.8 billion. The results followed similar trends for regional and Las Vegas businesses. However, digital revenue was also marginally lower due to customer-friendly sports results towards the end of the period.
Operating expenses were 7% lower at $2.13 billion, while after other costs, pre-tax profit was $43 million, compared to a loss of $40 million in 2023.
Caesars paid $19 million in taxes and included $13 million in total losses from non-controlling interests. This meant that net profit for the last four months reached US$11 million, an improvement on the US$72 million loss reported in the last quarter of the previous year.
However, adjusted EBITDA fell 4.6% to $882 million. “As we look to 2025, the physical operating environment remains stable and we look forward to another year of strong net revenue and adjusted EBITDA growth in our digital segment,” concluded Reeg.
