Caesars Entertainment is the latest operator to emphasise rewards to new trends, after closures in the second quarter devastated the financial results of the company with a series of expected declines in the outcome.
The remarks come in the company’s quarterly report, detailing the success of legacy Eldorado assets since the two companies completed an ongoing merger last month to become the largest casino and entertainment corporation in the United States.
Caesars Entertainment chief executive Tom Reeg commented: “Our second quarter operating trends were negatively impacted as the majority of our properties remained closed during April and May 2020. Our properties began to reopen in late May and early June.
“All of the combined new Caesars Entertainment regional properties are now reopened and we are encouraged by operating trends.”
Second quarter sales fell 78.2 percent from $637.1 m (2019: $126.5 m), with the company announcing that since mid-May 51 of its assets have resumed operations.
Net loss for the quarter fell to $100 million, compared to a profit of $18.9 million a year ago, with adjusted EBITDA also dropping 106.3 per cent from $178.6 million to a loss of $10.3 million.
In the first six months of the year to the period ended June 30, sales came in at $599.5 million , down 48.1% from $1.27 billion, net loss hit $275.6 million from a profit of $57.1 million in 2019, and adjusted EBITDA fell 71 percent from $345.3 million to $92.1 million.
Reeg added: “Now that the merger has closed, our operating teams are fully engaged with integrating the two companies and executing on the synergy plans. Our number one priority remains the safety and security of our team members and guests.
“Our COVID-19 operating plans for reopened properties are designed to ensure a safe and exciting environment for our guests. We remain optimistic regarding an eventual recovery of travel and tourism in the US and especially Las Vegas.”
The cash and equity deal of $17.3bn has previously seen Eldorado applaud the improved size and regional diversification to be felt as a result of the merger, with around $500 m in synergies anticipated to be felt in the first year.
In addition to its regional portfolio of casino properties, including a roster of eight Las Vegas Strip hotels, Caesars owns or operates casinos in 16 US states including Nevada, Colorado, Missouri, Iowa, Florida, Mississippi, Louisiana, Ohio, Illinois , Indiana, New Jersey , Pennsylvania, Arizona, North Carolina, California and Maryland.
At the end of the reporting period, the legacy Eldorado Resorts had outstanding $2.7bn in debt with gross cash and cash equivalents at $950.5 m.
Bret Yunker, chief financial officer of Caesars said: “We have a strong liquidity position which will allow us to weather short term weakness due to COVID-19. For new Caesars Entertainment, Inc. we successfully executed an $8bn debt raise on June 19, 2020, which further enhances our pro forma liquidity.”