In a recent Form 8-K submission to the US Securities and Exchange Commission, Caesars Entertainment disclosed preliminary financial data for the fourth quarter of 2023, covering the period ending on December 31st.
The report presents a range of estimates for various key performance indicators, providing insight into the company’s overall performance.
Caesars forecasts group revenue for the fourth quarter of 2023 to be in the range of $2.82 billion to $2.84 billion, surpassing the adjusted revenue of $2.77 billion reported in the same period in 2022.
Notably, this adjusted figure accounts for the subtraction of revenue from the Rio All-Suite Hotel & Casino in Las Vegas before its divestiture in October 2023.
The unadjusted 2022 total revenue stood at $2.82 billion, aligning closely with the lower end of the estimated Q4 2023 results.
Breaking down the revenue sources, Caesars anticipates revenue from its Las Vegas operations to be between $1.08 billion and $1.09 billion, reflecting a decrease compared to the adjusted $1.10 billion in the previous year.
This decline is attributed to the absence of revenue from the Rio property, which contributed $54 million to Las Vegas operations in Q4 2022.
Meanwhile, revenue from regional operations is expected to range from $1.34 billion to $1.37 billion, outperforming the $1.36 billion total recorded in 2022.
The digital business segment is poised for significant revenue growth, with estimates ranging between $303 million and $305 million for Q4 2023.
The midpoint of this range, $304 million, represents a notable 27.0% increase from the previous year.
Caesars also provided forecasts for other revenue streams, including managed and branded revenue, expected to fall between $67 million and $69 million, compared to $72 million in 2022.
Furthermore, the company foresees a corporate and other loss of $2 million, in contrast to the $2 million revenue reported in the prior year.
Looking at segmental performance in terms of adjusted EBITDA and net income, Caesars anticipates a decline in total adjusted EBITDA from $949 million to a range between $920 million and $940 million.
However, the digital division is expected to achieve positive EBITDA for the fourth consecutive quarter, a significant turnaround from the $5 million adjusted EBITDA loss posted in Q4 2022.
Conversely, most other segments are expected to experience a decrease in adjusted EBITDA, with the most substantial decline anticipated in Las Vegas, where Caesars predicts EBITDA between $486 million and $492 million, lower than both the adjusted 2022 figure of $529 million and the actual result of $537 million.
In terms of group net loss, Caesars estimates a loss ranging from $157 million to $4 million, potentially approaching profitability if it reaches the upper end of these estimates.
Las Vegas operations are expected to remain profitable, generating between $246 million and $254 million, although this represents a decline from the adjusted $287 million in 2022.
Regional operations may turn a profit of $13 million in the best-case scenario, while the lower estimate suggests a $54 million loss. In 2022, regional operations incurred a $17 million loss.
The digital business is likely to continue operating at a net loss, with estimates ranging between $9 million and $7 million, marking an improvement from the $35 million loss reported in the previous year.
Caesars emphasized that the figures disclosed are preliminary results, with the full Q4 and 2023 year-end results expected to be released on February 20th, providing a more comprehensive view of the company’s financial performance.