Caesars Optimistic of 2021 Rebound After Last Year's Losses
February 28, 2021
Caesars Entertainment’s Q4 and full-year financial results illustrated the extent of the impact of the COVID-19 pandemic, but the company is confident of a significant rebound in 2021.
Caesars' results for the period ended December 31, 2020, showed a 12-month net loss of US$1.8bn when compared with net income of $81m in 2019. In Q4, net revenues reached US$1.6bn, marking a decrease of 37.5 per cent against the comparable prior-year period. Net loss for the period was $555 million compared to net loss of US$13m in Q4 2019.
For the full year, same-store net revenues were at US$6.1bn, a decrease of 42.5 per cent from the comparable prior-year period.
The group's Las Vegas properties saw revenue plummet 54.8 per cent to $447m (2019: $989m), with Q4 seeing eight of the group’s nine venues in the region open during the entire quarter. Rio All Suite Hotel & Casino resumed operations on December 22.
CEO Tom Reeg acknowledged that while the fourth quarter was "negatively impacted by additional COVID-19 restrictions implemented in several states starting in November," early 2021 results indicate a "strengthening of consumer demand as restrictions have been lifted and demand levels normalize, especially at our regional, non-destination properties."
He added: “With vaccinations underway, we are optimistic about the year ahead and look forward to the recovery of travel and tourism in the U.S. and especially Las Vegas.”
Meanwhile, Caesars' sports betting joint venture with William Hill is currently operational in 15 states and Washington, D.C. and it is currently operating mobile online sports betting in 12 jurisdictions.
Caesars added that it anticipates being operational in 20 jurisdictions by year end 2021.