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Caesars Entertainment misses quarterly estimates on Las Vegas business hit

Published 04/30/2024, 06:03 PM
Updated 04/30/2024, 06:06 PM
© Reuters. Caesars Palace Las Vegas Hotel and Casino is seen on the Las Vegas Strip in Las Vegas, Nevada, U.S. February 26, 2018.  REUTERS/Darrin Zammit Lupi/File Photo
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(Reuters) - Caesars (NASDAQ:CZR) Entertainment missed market expectations for first-quarter results on Tuesday, as record levels of occupancy driven by the Super Bowl and visits for the Chinese New Year were offset by low table hold in its Las Vegas segment.

Shares of the company were down about 3% in extending trading.

Despite a surge in visitors in Las Vegas due to the Super Bowl, the biggest sporting event in the U.S., Caesars reported a fall in its non-gaming segments such as dining and retail, as well as its gaming operations.

"Caesars Digital delivered strong revenue growth despite lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness," said CEO Tom Reeg in a statement.

The casino operator, which runs Caesars Atlantic City and Caesars Palace, has benefited from a shift in consumer spending towards services.

However, profit from its U.S. properties, including in Las Vegas, has eased from last year's highs due to increased expenses on food and beverages, as well as hotel operations.

Regional segment sales were impacted by unfavorable winter weather conditions in the first two months of the year.

© Reuters. Caesars Palace Las Vegas Hotel and Casino is seen on the Las Vegas Strip in Las Vegas, Nevada, U.S. February 26, 2018.  REUTERS/Darrin Zammit Lupi/File Photo

The casino giant reported a loss of $0.73 per share, compared to analysts' expectation of a per share loss of $0.07.

Revenue of $2.74 billion for the quarter ended December 31 was below the expectation of $2.84 billion, according to LSEG data.

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