Online Gambling Drives Revenue Growth for Caesars Entertainment Corp.

Las Vegas-based gambling operator Caesars Entertainment Corp. announced its financial results for the three months ended December 31, 2015 and the year as a whole. Net revenue for the fourth quarter of 2015 amounted to $1.1 billion, up 8.7% year-on-year. Annual net revenue was up 14.7% year-on-year to reach $4.5 billion.

The gambling company attributed the increase in both quarterly and full-year net revenue to the strength in its hospitality offering as well as to the excellent performance of its online gambling division – Caesars Interactive Entertainment, and its social and mobile gaming business, in particular.

Quarterly net revenue from casino operations amounted to $519 million, up 0.6% as compared to the $516 million reported for the same period of 2014. Those generated annual net revenue of $2.1 billion, representing a 12.6% increase from the $1.9 billion posted for the previous year.

Caesars Interactive Entertainment, which is known to be the online gambling arm of the major operator, generated a total of $208 million in the fourth quarter of 2015. Annual revenue from the division increased 30.5% year-on-year to reach a total of $766 million.

Quarterly adjusted EBITDA amounted to $305 million, up 51.7%. Full-year adjusted EBITDA increased 46.1% year-on-year to reach $1.3 billion. The gambling company attributed the considerable increases to growth in net revenue, marketing and operational efficiencies, as well as to improvements in its hotel customer mix.

EBITDA from Caesars Interactive Entertainment amounted to $77 million for the three months ended December 31, 2015, up 67.4% year-on-year. Full-year EBITDA from the online gambling division totaled $283 million, up 62.6% year-on-year. Caesars Interactive Entertainment attributed the growth in both net revenue and EBITDA to its continued focus on both conversion and monetization of gambling customers so that to increase revenue per customer.

Commenting on the company’s financial performance, Mark Frissora, CEO and President of Caesars Entertainment Corp., said that it has achieved solid operating momentum over the past 12 months and this resulted in its best full-year in terms of operating results since 2007.

Mr. Frissora added that the generated level of sustained growth was indicative of the successful “low-cost, high-quality operating model” his company had adopted. The executive also pointed out that they will remain focused on achieving revenue growth while “driving productivity gains” for the improvement of margins and cash flow and on delivering value for shareholders.

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