Dive Brief:
- In the third quarter of 2024, Caesars Entertainment saw net revenues decline 2.6% year over year, according to a Tuesday earnings report. Caesars also posted that net revenues decreased 1.3% year over year in Las Vegas, where the company operates several prominent resorts along the Strip.
- Caesars posted a 4% year-over-year decline in adjusted EBITDA in Q3, according to the report. In Las Vegas, adjusted EBITDA decreased 2.1% on an annual basis.
- The company’s regional segment was negatively impacted by new competition and construction disruption, according to Caesars CEO Tom Reeg. Las Vegas, meanwhile, posted strong occupancy and cash ADRs in the quarter, despite declines, and growth is anticipated for future quarters spurred by group business, Reeg said during a Tuesday earnings call.
Dive Insight:
Group and convention business in Las Vegas contributed to performance growth in Q3 and is pacing well for 2025, according to Reeg.
“Group business was stronger in ‘24 than ‘23, and will be stronger in ‘25 than ‘24,” Reeg said during the call.
Last quarter, Las Vegas led all other top 25 U.S. markets for events volume growth, up 18.5% year over year in May, according to Knowland. Group business performance in Las Vegas fully recovered to pre-pandemic levels in the fourth quarter of last year.
Record third-quarter hotel, food and beverage and banquet revenues in Caesars’ Las Vegas segment were driven by strong ADRs and occupancy of 97.1%, Caesars President and COO Anthony Carano shared during the earnings call.
Reeg is optimistic about Caesars’ results in Las Vegas in the fourth quarter, as the company’s newly renovated Versailles Tower is online this year after opening in August.
Additionally, Formula 1’s Las Vegas Grand Prix in November should drive increased visitors to the market. However, Reeg said, this year’s event should result in a flat or slightly declined year-over-year impact, whereas last year’s F1 race resulted in a roughly $17 million lift to Caesars’ adjusted EBITDA.
Beyond Las Vegas, Reeg said Caesars should see future growth in its regional segment driven by the recent opening of its $435 million Harrah’s redevelopment.
“[Caesars New Orleans] turned out beautifully,” Reeg said. “The early reception has been tremendous, and we're very, very optimistic about what happens in New Orleans.”
