COVID takes its toll on Caesars as 2020 yields net loss of $1.8bn

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The full cost of COVID has been spelled out in Caesars Entertainment’s Q4 and full-year financials for the period ended December 31, 2020, showing a 12-month net loss of $1.8bn versus net income of $81m year-on-year.

In Q4, and on a same-store basis, net revenues reached $1.6bn, marking a decrease of 37.5% versus the comparable prior-year period, while net loss was recorded at $555m compared to net loss of $13m in Q4 2019. Same-store adjusted EBITDA in Q4 was of $346m versus $722m year-on-year.

For the full year, Caesars saw same-store net revenues of $6.1bn, a decrease of 42.5% versus the comparable prior-year period. Same-store adjusted EBITDA came in at $1.1bn versus $3bn for 2019.

CEO Tom Reeg commented: “Our fourth quarter was negatively impacted by additional COVID-19 restrictions implemented in several states starting in November. Early results in the new year indicate a strengthening of consumer demand as restrictions have been lifted and demand levels normalize, especially at our regional, non-destination properties.”

He added: “With vaccinations underway, we are optimistic about the year ahead and look forward to the recovery of travel and tourism in the US and especially Las Vegas.”

Turning to operational highlights, the firm told investors that through its sports betting joint venture with William Hill it is currently operational in 15 states and Washington DC and currently operating mobile online sports betting in 12 jurisdictions.

Caesars added that it anticipates being operational in 20 jurisdictions by year end 2021.

Headline figures

Fourth Quarter Results and Recent Highlights:

  • Net revenues of $1.5bn, an increase of 152.9% on a GAAP basis. Same-store net revenues were $1.6bn, a decrease of 37.5% versus the comparable prior-year period.
  • Net loss of $555mn compared to net loss of $13m for the comparable prior-year period.
  • Adjusted EBITDA of $296m on a GAAP basis, up 91.0% year over year. Same-store adjusted EBITDA of $346m versus $722m for the comparable prior-year period.

Full-Year Results and Recent Highlights

  • Net revenues of $3.5bn, an increase of 37.4% on a GAAP basis. Same-store net revenues of $6.1bn, a decrease of 42.5% versus the comparable prior-year period.
  • Net loss of $1.8bn compared to net income of $81m for the comparable prior-year period.
  • Adjusted EBITDA of $737m on a GAAP basis versus $697m last year. Same-store adjusted EBITDA of $1.1bn versus $3bn for the comparable prior-year period.

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