Investing.com -- Caesars Entertainment Corporation (O:CZR) sharply reduced its losses in the fourth quarter of last year, amid a spike in hotel revenues, providing some optimism for a battered casino attempting to reorganize while under bankruptcy.
During the casino and resort's fourth quarter, which ended in late-December, Caesars Entertainment reported a loss of $76 million or 0.54 per share, considerably above losses of $1.02 billion or 7.08 a share a year earlier. Caesars saw its revenues surge nearly 9% to $1.12 billion, while its casino sales inched up by 0.6% for the three-month period. Analysts forecasted net profits of $1.62 billion on losses of 0.09 per share.
In January, 2015, Caesars Entertainment filed for Chapter 11 bankruptcy in U.S. District Court in Chicago, brought about by its heavy debt load and curtailed gambling habits as the nation suffered through the Great Recession. By October, Caesars filed an amendment to the reorganization plan aimed at cutting approximately $10 billion in debt. As part of the plan, Caesars could split into two separate companies, with one operating the casino division and the other owning its real estate arm.
"Caesars achieved solid operating momentum throughout 2015. Including CEOC's results, the enterprise experienced its best full-year of operating results since 2007," said Mark Frissora, President and CEO of Caesars Entertainment. "These results largely reflect higher hotel revenues, with cash ADR up double-digits, and increased marketing and operational efficiencies, which delivered approximately $350 million in incremental EBITDA enterprise-wide year-over-year."
Caesars Entertainment will look to rebound this year, after a tumultuous stretch in 2015 when its shares plunged more than 35% to all-time lows. In July, Caesars shares fell to record lows at 4.76.
"We remain focused on executing a balanced agenda of enhancing revenue growth while driving productivity gains to improve margins and cash flow, while increasing long-term value for our stakeholders," Frissora added.
Shares in Caesars Entertainment lost 0.21 or 2.72% on Tuesday to close at 7.52.