Consolidated Net Revenues: $2.7 billion, declined by 1% year-over-year.
Total Adjusted EBITDAR: $853 million, down 10% year-over-year.
Las Vegas Segment Adjusted EBITDAR: $440 million, marking the second-best Q1 on record despite low table hold.
Regional Segment Adjusted EBITDAR: $433 million, a 3% decrease versus last year, mainly due to unfavorable winter weather.
Digital Segment Net Revenues: $282 million, up 19% year-over-year with an adjusted EBITDA of $5 million during the quarter.
Future Guidance
Capital Expenditure (CapEx): For 2024, expected to be $800 million, excluding the Danville JV. Indicates a completion of significant construction projects expected to generate strong returns.
Debt Refinancing: Achieved $4.4 billion of parent-level debt refinancing in Q1, improving debt maturity profile to 2031 and beyond.
Operational Improvements: Anticipated growth in the last three quarters of the year for Las Vegas and Regional segments due to the normalization of the identified transitory issues like table hold and weather impact.
Digital Segment: Continuation of strong growth in Online Sports Betting and iCasino, with expansions and enhancements in product offerings aimed to improve revenue and customer experience.
Trends, Market Conditions, Sentiment
Resiliency in Las Vegas: Despite challenges, Las Vegas showed strong visitation with record Q1 occupancy and high cash hotel and F&B revenues, indicating robust demand.
Impact of Adverse Weather: Weather significantly impacted Regional segment performance, yet improvements were observed month-over-month within Q1.
Strong Digital Growth: Continued momentum in Caesars Digital, driven by significant growth in Online Sports Betting and iCasino revenues.
Challenges with State Launches: The launch of Sports Betting in North Carolina encountered initial losses, highlighting the unpredictability and investment required in new market entries.
Capital Efficiency and Debt Management: Focus on completing high-return capital projects and utilizing free cash flow for debt reduction reflects a strategic approach to improve financial health and operational efficiency.
Notable Quotes
Tom Reeg on Quarter Challenges: “This is the kind of quarter where everything that could go wrong did for us… There’s well over $75 million of what’s clearly one-time negatives for us in the quarter.”
Reeg on Las Vegas Table Hold: “This was [table hold] particularly negative on the operating leverage side because you’re fully staffed… You’ll have quarters that are the reverse.”
Reeg on Regional and Digital Segments: “We are particularly optimistic about the rest of the year, particularly the second half… feel fantastic about where digital is today.”
Reeg on Future Growth: “We’re going to generate more than $500 million of Digital EBITDA. It’s just a matter of when… you should expect a step down in gross CapEx in ‘25.”
