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  • Q4 2023: Caesars Entertainment reports 29% growth in digital revenue
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Caesars Entertainment’s preliminary Q4 2023 results saw 29% growth in digital revenue, in spite of customer friendly sports results during the quarter.

Caesars opted to give a preview of its results early this year, due to the business announcing a $3.4bn tender of outstanding bonds as part of a debt restructuring.

The operator only gave estimates within a range for the results. NEXT.io has opted to note the midpoint between the two estimates for the sake of clarity.

The Las Vegas-tentpole reported $2.3bn in overall revenue for the quarter, a slight 0.1% decline from the same period the previous year.

The results saw a 5.5% fall in the company’s Las Vegas operations to $1.09bn, driven by construction disruption, trade union negotiations and lower hold.

This was partially offset by an approximate 28.3% rise in digital revenue to $304m, reflective of improved iGaming and sports betting handle compared to Q4 2022.

Overall, the company reported a 2.8% decline in EBITDA to $930m. Meanwhile, the company’s net loss was estimated at $81m, compared to last year’s $148m.

The best-case range would see a $4m loss, while the low end stands at $157m in the red.

Like many US operators, Caesars’ total was negatively affected by customer friendly sports results in November.

As such, the business estimated revenue would be $44m less than expected, while adjusted EBITDA and net income would likely face a $28m hit.

Caesars restructures debt to pay down 2025 loans

Caesars also announced it had set up a new debt facility of $3.40bn. This is to be funded through a tender offer of the business’ 6.250% Senior Secured Notes due 2025. The offer is set to expire at 5pm ET on 30 January.

The company said this was to pay down debt that is to become due in 2025, as well as settle any associated fees, interest or premiums.

JP Morgan will act as the lead deal manager for the tender, while Deutsche Bank has been engaged as the co-deal manager.

Caesars’ stock price has suffered recently, with shares down 19.3% from six months ago.

In the operator’s Q3 earnings call, CEO Tom Reeg argued that the share price volatility was “not reflective” of the firm’s actual operations.

In Q3, the operator reported $3bn in revenue, as well as its highest ever achieved adjusted EBITDA, which stood at $1.04bn for the quarter.

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