Caesars Reports Smaller Loss But Still Misses Estimate
Caesars Entertainment has posted a smaller loss for the second quarter but still missed expectations with slots and table games attracting fewer gamblers than predicted. The company saw revenue fall by $116.8 million, 7.5%, across its casinos in the U.S. and Britain.
However, company CEO Gary Loveman remains optimistic and believes that food and drink will help recover lost money.
“Food and beverage revenues were up very meaningfully in a year when gaming revenues were weak, and we do think that trend is with us for a long time to come. We have visitors that are coming to Las Vegas principally for nongaming activities, though they may gamble a little while they’re here.”
Overall food and drink revenue was flat for the quarter but was up 8.9% in Las Vegas.
Caesars says that the drop in gambling income is due to fewer gamblers. The company also said that it is facing increased competition in Vegas as states begin to legalise online gambling.
Caesars net loss for the second quarter shrank by 12% to $1.69 per share from $1.93 last year and revenue fell from $2.16 billion. However, analysts had predicted a loss of $1.40 per share on revenue of $2.18 billion.