In the second quarter, stronger gaming fundamentals across most of our properties were offset by expected unfavorable year-over-year hold, primarily in baccarat, and the impact of more hotel rooms off the market for renovation," said Mark Frissora, President and Chief Executive Officer.
"Despite these second-quarter headwinds, we have seen improved performance in the third quarter and believe we are on track to surpass our initially disclosed 2017 full-year EBITDAR projections by at least $40 million before the anticipated deconsolidation of Horseshoe Baltimore. We currently expect to complete the restructuring of CEOC and the merger of Caesars Entertainment and Caesars Acquisition in the first week of October, which will allow us increased flexibility to prudently invest in growth."
Among the key aspects included in the comapany's report are:
- Net revenues increased 1.0% year-over-year to $1.0 billion, mainly due to higher volumes across most properties, strong hotel performance in Las Vegas and incremental revenues from operational initiatives.
- Net loss for CEC, before including the effect of noncontrolling interest, was $1.4 billion, reflecting a $617 million improvement compared to the second quarter of 2016, primarily attributable to lower adjustments related to the restructuring of Caesars Entertainment Operating Company, Inc. ("CEOC").
- Adjusted EBITDA was flat at $289 million.
- Despite softness in Las Vegas and ongoing construction disruption year-over-year, continuing CEC occupancy improved 1.4%, and lodging revenues increased 1.3%.
- Received stockholder approval for the merger of CEC and Caesars Acquisition Company ("CAC") and continued to make progress with regulators in jurisdictions where approvals are required for CEOC's restructuring and emergence from bankruptcy, with approvals from Nevada, Missouri, and Louisiana still pending.