Caesars Swings to Loss But Sees Recovery Under Way

Business News

Caesars Entertainment has reported an 78% second-quarter drop in net revenue due to coronavirus closures.

The operator of six reopened resorts on The Strip on Thursday reported a net loss of $100 million compared to a net income of $18.9 million recorded during the same period a year earlier.

“Our second quarter operating trends were negatively impacted as the majority of our properties remained closed during April and May 2020,” Tom Reeg, Caesars Entertainment CEO, said in a statement. 

The second quarter report comes two weeks after a historic merger between Eldorado Resorts Inc. and Caesars Entertainment Corp. became official and created the largest casino and gaming company in the United States.

The merger further bolstered the regional presence of the combined companies, which now either own or operate gaming properties in 16 U.S. states, including Nevada, Colorado, Louisiana and New Jersey. The merged gaming entity, which keeps the Caesars name, counts 55 casino properties under its umbrella, which includes international properties as well.

“Now that the merger has closed, our operating teams are fully engaged with integrating the two companies and executing on the synergy plans,” Reeg said. “We remain optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially Las Vegas.”

Caesars’ second-quarter losses were not as devastating as what competitors reported. A sustained shutdown of MGM Resorts properties in the wake of COVID-19 contributed to a second quarter operating loss of $1 billion.

Citing the disappearance of convention business on The Strip, Las Vegas Sands reported second quarter loss of almost $1 billion. “We’re in a world of hurt here in terms of Las Vegas,” Las Vegas Sands President and COO Rob Goldstein said in an earnings call. “I’ve never felt more gloomy than I do today about what’s happening in Las Vegas.”