Caesars Entertainment, one of the largest casino and hospitality corporations in the United States, has today announced the release of its third quarter report and stated that it remains optimistic of an eventual recovery of its operating industry within the US, particularly Las Vegas.
The company had a busy third quarter with $1.4 billion in net revenue and many highlights, including the merger of Eldorado Resorts, Inc. and Caesars Entertainment Corporation, an acquisition all-cash offer of William Hill plc and the commencing of a new multi-year sports betting partnership with American multinational basic cable sports channel ESPN.
In addition, Caesars announced the sale of casino hotel and entertainment complex in downtown Evansville, Indiana; Tropicana Evansville to Gaming and Leisure Properties and Twin River Worldwide Holdings.
By the end of the third quarter, 55 out of 56 Caesars’ properties had reopened for business following a prolonged period of downtime related to the ongoing Covid-19 pandemic and the firm stated that its operating results continued to improve.
However, the quarter brought many challenges for the gaming giant as it navigated the Coronavirus pandemic with phased reopenings of its casino and hotel properties, some of which are operating on adjusted measures, such as reduced capacity and limited available gaming machines and table games.
In light of this, only five of Caesars’ nine properties in its Las Vegas segment were open during the entire third quarter, which meant that revenues were down more than fifty percent. What’s more, revenues were also down in other regions of business as much as 39%.
One major positive for the corporation during the recovery third quarter was the signing of the collaboration with ESPN for sports betting services, which will include the integration of William Hill to ESPN digital platforms so that punters can connect to betting markets via the Caesars Sportsbook by William Hill and mobile app in online betting active states.
Chief Executive Officer of Caesars Entertainment Tom Reeg commented on the third quarter report along with reflecting on the firms activities during the period in comparison to last year:
“Our third quarter was a busy period for the company. We officially closed our merger with Former Caesars on July 20, 2020.
We announced a recommended offer to acquire William Hill plc on September 30, 2020 and successfully raised $1.9 billion of new equity that closed on October 1, 2020.
Additionally, 55 out of our 56 properties have now reopened and operating results continue to improve sequentially.
Regional markets continued to outperform destination markets and we remain optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially in Las Vegas.”