Caesars Entertainment reports second-quarter 2018 results

"We delivered solid second quarter results, led by strong gaming and hospitality performance in Las Vegas, where we have completed renovating 60% of our 23,000 hotel rooms since 2014. The results also reflect balanced, robust cost management and growth strategies," said Mark Frissora, President & Chief Executive Officer. "Caesars remains positioned for sustained revenue and EBITDAR growth, and starting this quarter we begin to realize the benefits of the Centaur acquisition, which closed on July 16th, and new sports betting businesses in New Jersey and Mississippi."

"Our strong operating performance and growth initiatives support a robust free cash flow profile, which positions the company well for sustained growth in the coming quarters and years," added Eric Hession, Executive Vice President and Chief Financial Officer. "We are committed to maintaining our strong balance sheet and to executing on our disciplined capital allocation strategy to maximize value for shareholders."

Second Quarter Highlights:

• Second quarter net revenues increased by $1.11 billion, from $1.01 billion to $2.12 billion, due to the inclusion of the results of CEOC, LLC ("CEOC"), which emerged from bankruptcy in the fourth quarter of 2017.
• Net income improved $1,461 million, from a net loss of $1,432 million to net income of $29 million, due to restructuring charges in the prior year.
• CEC subsidiary executed a $1 billion one year forward interest rate swap, increasing its fixed debt percentage to 60%.

Same-Store Highlights:

• Same-store net revenues improved 2.8%, or $57 million, from $2.06 billion to $2.12 billion.
• Same-store adjusted EBITDAR increased 13.1% or $72 million, from $551 million to $623 million, driven by revenue growth in gaming and hospitality, and operating cost reduction.
• Same-store adjusted EBITDAR margin expanded 270 basis points to 29.4%.
• Las Vegas RevPAR increased 3.5% to $136, within the Company's guidance range. Las Vegas ADR increased $7 to $145.
• Marketing costs decreased 6.6%, or $34 million, including $25 million of contra-revenue, reflecting the Company's continued focus in this area.