Caesars shares jump as CEO forecasts profit potential


Caesars, the largest owner of casinos in the US, reported adjusted first-quarter earnings of US$505mil (RM2.1bil) before interest, taxes, depreciation and amortisation, a 23% increase from a year earlier.

LAS VEGAS: Caesars Entertainment Inc shares leaped in extended trading after chief executive officer Tom Reeg gave an upbeat profit forecast and pointed to continuing signs of recovery for the gambling industry.

Caesars, the largest owner of casinos in the US, reported adjusted first-quarter earnings of US$505mil (RM2.1bil) before interest, taxes, depreciation and amortisation, a 23% increase from a year earlier.

Reeg – who orchestrated the merger of Caesars and Eldorado Resorts last year, along with the recent purchase of sports betting operator William Hill Plc – said on a conference call yesterday that the company would likely earn US$1bil in profit in at least one quarter this year and that he’d be “disappointed” if Caesars doesn’t generate over US$4bil for all of 2022.

Consumers cooped up in their homes by the coronavirus socked away savings that they’re now beginning to spend on travel and entertainment. Casinos outside of Las Vegas have led industry’s recovery because guests don’t have to fly to them. Younger patrons with fewer entertainment options have been among the first to return. Older guests may follow.“As the world reopens, we already see this capital being unlocked and coming into our doors, ” Reeg said. “I think the demand for entertainment and just fun, after the last 12 to 14 months, is going to be like nothing any of us have seen in our lifetime.”

The shares jumped as much as 9.4% to US$104.48 during the call. They were up 29% this year through the close Tuesday in New York. — BloombergReeg also reiterated plans to sell one of the company’s big Las Vegas hotels and William Hill’s non-US business to help reduce debt. He plans to take the William Hill name off the company’s sportsbooks and app, replacing them with Caesars.

Like other Las Vegas resort operators, Caesars has seen an especially steep decline in its meeting and convention business, which has been effectively shut down for the past year. Weekday hotel rates, which depend on that business, remain low. But leisure travel has picked up.

On the call, President Anthony Carano said “weekends in Las Vegas are sold out for the foreseeable future.”

The Caesars website showed rooms available at 10 of the company’s Las Vegas resorts this weekend at rates from US$179 a night. -- Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Caesars casino , profit , shares ,

   

Next In Business News

Job hole or inflation? Fed policymakers split over risk view
Banks clear Fed stress test, paving way to boost buybacks, dividends
Oil price settles up near 3-year highs on signs of demand growth
China's DiDi to list on New York Stock Exchange
GLOBAL MARKETS-Global shares gain as infrastructure spending, jobs data boost
Consolidation is inevitable
New Panasonic CEO says efficiency to fuel Tesla business, growth
Indonesia’s lower CPO export levy beneficiaries
Astro signs Netflix as new streaming partner
Boustead’s three-pronged strategy to reinvent itself

Stories You'll Enjoy


Vouchers