Entertainment
American gaming powerhouse Caesars Entertainment has published its Q4 and FY 2024 financials, highlighting stable revenue and an increase in net income, despite a slight decline in adjusted EBITDA.
In addition to that, the company announced that it is open to the possibility of selling more non-core assets in order to reduce its debt.
Caesars Reports Stable FY 2024 Results
In Q4 2024, Caesars reported net revenues of $2.8 billion, marking a slight year-on-year decline from $2.83 billion in Q4 2023. Net income, on the other hand, increased to $11 million compared to a net loss of $72 million in the prior-year period.
Same-store adjusted EBITDA stood at $882 million, marking a slight drop from $924 million in the prior-year period. Caesars Digital’s adjusted EBITDA, on the other hand, dropped from $29 million in Q4 2023 to $20 million in Q4 2024.
In terms of its full-year results, Caesars reported revenues of $11.2 billion, slightly down from $11.5 billion in the previous years. Net loss narrowed significantly from $786 million in 2023 to $278 million in 2024. The decrease was driven by the release of $940 million of valuation allowance against deferred tax assets.
In the meantime, same-store adjusted EBITDA of $3.7 billion, down from $3.9 billion in 2023. Caesars Digital adjusted EBITDA, on the other hand, stood at $117 million, marking a significant increase from the $38 million reported the previous year.
The Management Is Optimistic About 2025
Tom Reeg, Caesars Entertainment’s chief executive officer, commented on the results, saying that the Q4 figures showed stable conditions in Las Vegas. He noted that the Q4 performance of Caesars Digital was impacted by sports betting customer-friendly outcomes in October and December. However, this negative impact was offset by a significant growth in iGaming net revenues.
Reeg said that the company is optimistic about 2025 amid a stable land-based environment and potential for further growth in the digital segment.
When combined with lower capex and cash interest expense, 2025 is expected deliver significant free cash flow which we expect will be used to further reduce leverage.
Tom Reeg, CEO, Caesars Entertainment
Caesars Considers Selling Non-Core Assets to Repay Debt
In the meantime, Caesars suggested that it remains open to selling non-core assets, including casinos, in order to further reduce its debts. However, the company added that it expects the 2025 climate to be less favorable to such transactions than in 2024.
Reeg told analysts that his team is in active dialogue for potential transactions, although the talks have yet to yield results. According to him, divesting non-core assets would be a step in the right direction, although he refrained from clarifying what assets his team considers to be non-core.
In any case, specialists seem to agree that divesting certain properties might prove effective in reducing the company’s outstanding debt.
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Angel Hristov