Caesars Entertainment's Q2 2016 financial results announced

Highlights

• Net revenues for Continuing CEC increased 7.8% year-over-year to $1.2 billion primarily attributable to strength in Caesars Interactive Entertainment's ("CIE") social and mobile games business and growth in hospitality revenues in Las Vegas.
• Net loss for Continuing CEC was $2.0 billion compared to net income of $50 million in the second quarter of 2015 and was largely driven by an accrual of $2.0 billion related to the restructuring of CEOC and a year-over-year increase in stock-based compensation at CIE due to fair value estimates.
• Adjusted EBITDA for Continuing CEC grew 11.8% year-over-year to $388 million.
• Net revenues for CIE increased 33.9% year-over-year to $249 million driven by greater monetization of monthly unique paying users in the social and mobile games business. Net income declined $43 million to a net loss of $4 million mainly due to an expense of $66 million for the quarter related to the fair value adjustment of CIE's stock-based compensation awards. Adjusted EBITDA grew 42.9% to $100 million.
• Cash ADR in Las Vegas was up 8.2% due to increased resort fees, effective hotel yield management and improved pricing power due to room product enhancements.

"We delivered solid operating performance in the second quarter, including an 8% increase in net revenue and strong income and margin results, excluding the impact of bankruptcy-related charges and CIE stock compensation expense," said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment. "Our second-quarter performance was driven by strong results in Las Vegas lodging, exemplified by a 6.5% increase in RevPAR, as well as entertainment and continued strength in the social and mobile games business."

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"Additionally, our productivity efforts have improved our revenue per employee and marketing efficiency, as we drive further margin improvement and cash flow while maintaining high levels of employee and customer satisfaction," concluded Frissora.