Q2 2024 Caesars Entertainment Inc Earnings Call Transcript
Key Points
- Caesars Entertainment Inc (CZR) reported consolidated net revenues of $2.8 billion and total adjusted EBITDAR of $1 billion, both flat versus the prior year.
- The Las Vegas segment delivered a same-store second quarter net revenue record of $1.1 billion and adjusted EBITDAR of $514 million, beating the prior year by 1.2%.
- Recent room renovations at the Versailles Tower at Paris and Colosseum Tower at Caesars Palace are driving above-plan returns on investment.
- Caesars Digital delivered second quarter net revenues of $276 million, up 28% year-over-year, and set a quarterly adjusted EBITDA record of $40 million.
- Strong free cash flow generation of over $100 million in Q2 was applied to permanently reduce the 2030 Term Loan B, extending the maturity profile significantly.
- Adjusted EBITDAR for the regional segment was $469 million, down 8% year-over-year, driven by competitive pressures, construction disruption, and difficult comparisons.
- Las Vegas EBITDAR margins of 46.6% were down 40 basis points year-over-year despite increases in labor costs.
- The regional segment faced significant headwinds, including construction disruption in New Orleans and a large group event in Reno not recurring this year.
- The company is still dealing with peak construction disruption in New Orleans, which will continue into the third quarter.
- The regional segment is expected to face similar headwinds in the third quarter, potentially leading to another year-over-year decline.
Hello, thank you for standing by. Welcome to Caesars Entertainment, Inc. 2024 Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. (Operator Instructions)
I would now like to turn the call over to Brian Agnew, Senior Vice President of Corporate Finance, Treasury, and Investor Relations. Sir, you may begin.
Thank you, Tawanda, and good afternoon to everyone on the call. Welcome to our conference call to discuss our second quarter 2024 earnings. This afternoon, we issued a press release announcing our financial results for the period ended June 30, 2024. A copy of the press release is available in the Investor Relations section of our website at investor.caesars.com.
As usual, joining me on the call today are Tom Reeg, our Chief Executive Officer; Anthony Carano, our President and Chief Operating Officer; Bret Yunker, our Chief Financial Officer; Eric
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