Caesars Q1 lifted by 349% year-on-year jump in digital division revenue
Net losses and adjusted EBITDA losses from digital division continue to decrease in first three months of 2023 as operator lauds strong quarter
Caesars has reported a 349% year-on-year (YOY) surge in revenue from the Caesars Digital business during Q1 2023 to $238m, up from a negative figure of $53m a year prior.
The Las Vegas-headquartered operator continued to narrow its digital adjusted EBITDA losses during Q1, with losses shrinking from negative $554m in Q1 2022 to a negative figure of just $4m in 2023.
Caesars Digital’s net losses mimicked the wider firm’s adjusted EBITDA numbers, with net losses dropping from negative $576m in Q1 2022 down to just negative $32m in in Q1 2023.
At a divisional level, Caesars reported percentage increases in revenue across all four major divisions, with its corporate and Las Vegas operations enjoying particularly high increases during Q1.
Corporate and other revenue jumped 50% YOY to $3m in Q1, with Caesars’ Las Vegas operations reporting a 24% revenue increase over the same period to $1.1bn.
The managed and branded (MAB) division and Caesars’ regional division reported single-digit growth in percentage terms during Q1 2023, with MAB revenue increasing by 4.5% YOY to $69m and regional division revenue rising 2.2% to $1.3bn.
At a group level, Caesars Entertainment posted net revenue of $2.8bn during Q1, up 24% YOY from the Q1 2022 total of $2.3bn.
Company net losses decreased by double digits over the same period by 80%, from a Q1 2022 negative $680m to a negative $146m in 2023.
Caesars group adjusted EBITDA rose to $958m in the first three months of 2023, compared to a prior Q1 2022 adjusted EBITDA figure of just $296m.
Caesars CEO Tom Reeg praised the firm’s performance during Q1, lauding the potential of the Caesars Digital business in the coming quarters.
“We delivered another strong quarter led by a new Q1 adjusted EBITDA record in Las Vegas,” Reeg said.
“Results in our regional segment remained consistent with prior quarters, especially when excluding the impact of bad weather in northern Nevada during the quarter.
“Our digital segment was nearly break even in the quarter despite launching operations in Ohio and Massachusetts,” Reeg added.
The operator’s share price fell by 4% on the positive results to a closing price of $44.52 on the Nasdaq stock exchange.