Caesars Entertainment Shares Drop 2% Following Disappointing Q3 Results

LAS VEGAS - Caesars Entertainment Inc. (NASDAQ:CZR) saw its shares decline by 2.8% in after-hours trading after reporting third-quarter results that fell short of analyst expectations on Tuesday following market close.

The casino operator posted a loss of $0.04 per share, below the expected profit of $0.24 per share. Revenue amounted to $2.9 billion, missing analyst estimates of $2.93 billion.

Caesars' quarterly revenue decreased to $2.87 billion, reflecting a 2.6% year-over-year decline on a same-store basis. Revenue from the Las Vegas segment fell 1.3% to $1.06 billion, while regional revenue decreased by 7.6% to $1.45 billion.

CEO Tom Reeg stated, "In the third quarter, we once again achieved consolidated adjusted EBITDA of $1 billion on a same-store basis." He noted that the Las Vegas results reflected "record third-quarter hotel, food, beverage, and banquet revenue, driven by strong occupancy rates and cash ADRs."

However, Reeg added that the operational results of the regional segment were negatively impacted by "new competition, construction-related disruptions, and tough comparisons to last year."

On a positive note, the Caesars Digital segment set a new quarterly adjusted EBITDA record at $52 million, benefiting from over 40% net revenue growth.

The company ended the quarter with $802 million in cash and cash equivalents. Caesars announced that it recently completed a new $1.1 billion unsecured senior refinancing agreement, stating that this agreement, along with previous financing, "continues to set the stage for significant interest expense savings in 2025."