Caesars Entertainment’s first-quarter results fell short of market expectations, despite record levels of occupancy driven by the Super Bowl and visits for the Chinese New Year. This led to a 3% drop in shares during extended trading.
Despite an increase in visitors to Las Vegas due to the Super Bowl, Caesars reported a decrease in its non-gaming segments like dining and retail, as well as its gaming operations. CEO Tom Reeg noted that Caesars Digital experienced strong revenue growth, but online sports were impacted by unfavorable outcomes for major events like the Super Bowl and March Madness.
The shift in consumer spending towards services has benefited Caesars Entertainment, which operates properties like Caesars Atlantic City and Caesars Palace. However, profits from its U.S. properties, including those in Las Vegas, have declined due to increased expenses related to food and beverage, as well as hotel operations. The regional segment sales were also affected by unfavorable winter weather conditions during the first two months of the year.
Caesars Entertainment reported a loss of $0.73 per share, compared to analysts’ expectations of a per share loss of $0.07. Revenue for the quarter ended December 31 was $2.74 billion, falling short of the expected $2.84 billion according to LSEG data