Publishing its results for the fourth quarter and full-year 2017, Caesars Entertainment reported a leap in net quarterly income to $2bn against a Q4, 2016, loss of $436m.
Fourth quarter net revenues increased to $1.9bn due to the inclusion of Caesars Entertainment Operating Company, the subsidiary that owns and operates much of the Caesars estate and which the group confirmed has now emerged from bankruptcy.
The $2bn net income against net revenues of $1.9bn was possible thanks to a $2bn windfall as a result of the change in US taxation.
The results, widely regarded as positive, led to a near five per cent jump in share value in extended trading on the US Nasdaq yesterday.
For the full year, net revenues rose to $4.85bn thanks to the inclusion of CEOC while net loss was $375m.
In a statement, Mark Frissora, president and CEO of Caesars Entertainment, said: “Caesars Entertainment delivered another year of solid operating performance with revenue growth across all segments versus 2016, operating income margin expansion, and same-store EBITDAR margin up 59 basis points year-over-year to the highest level in more than a decade.
“Same-store gaming revenues increased company-wide for the full year despite unfavourable hold of approximately $80m. Non-gaming revenues and Las Vegas RevPAR [revenue per available room] increased for the full year, driven by room renovations and overall strength of our hospitality assets,” said Frissora.
“In 2018, we will continue to invest in our core business while pursuing attractive growth opportunities, including our acquisition of Centaur Gaming.”
The $1.7bn acquisition of gaming and horse racing company Centaur Holdings was announced in November, in a move that boosts Caesars’ position in the Indiana market.
