LAS VEGAS—Caesars Entertainment Corporation reported that net revenues increased 4.9% to $2.22 billion ahead of its merger with El Dorado Resorts.
The company also reported that income from operations decreased 4.6% to $269 million, while the net loss attributable to Caesars was $315 million. Basic loss per share totaled $0.47.
“Caesars delivered solid financial results in the second quarter driven by the contribution from Centaur and strength from our Las Vegas hotel and food and beverage businesses,” said Tony Rodio, CEO, Caesars Entertainment. “Our Las Vegas performance was the result of strong group and leisure demand, which produced an all-time quarterly record for hotel cash revenue and occupancy for the second consecutive quarter. These results were partially offset by competitive pressures in Atlantic City and other parts of our regional portfolio, as well as unfavorable hold predominately at Caesars Palace.”
On June 24, 2019, Caesars and Eldorado Resorts Inc. announced that their boards of directors unanimously approved a definitive agreement pursuant to which Eldorado will acquire all of the outstanding shares of Caesars common stock in a cash and stock transaction. Caesars stockholders will receive total value per share equal to $8.40 per share in cash consideration and 0.0899 shares of Eldorado common stock (valued as of the completion of the merger based on Eldorado’s 10-trading day volume weighted average price per share) for each share of Caesars common stock they own.
Following the completion of the merger, Eldorado and Caesars stockholders will hold approximately 51% and 49% of the combined company’s outstanding shares of common stock, respectively.
“As we work toward successful completion of the proposed merger with Eldorado Resorts, the management team and I remain focused on improving the company’s operations and financial profile through incremental revenue opportunities and operating efficiencies,” he said. “I’m confident that the proposed transaction will create an industry-leading platform poised to succeed in our dynamic industry.”
Las Vegas delivered solid performance in the second quarter driven by healthy consumer demand and strength across the hotel and food and beverage verticals. Hotel strength came from solid growth in cash hotel revenue, up 6.3% YOY, a 370-basis-point YOY increase in occupancy and a 6.2% YOY increase in RevPAR. Food and beverage benefitted from the increase in occupancy with Caesars Palace representing most of the strength due to strong performance at Hell’s Kitchen, Vanderpump Cocktail Garden and banquets.
