Caesars Acquisition Company posted information about the financial performance of Caesars Growth Partners, LLC (a joint venture between Caesars Entertainment Corporation and Caesars Acquisition Company) during the first quarter of 2015. The company reported an increase in revenue and EBITDA for both its Interactive Entertainment and Casino Properties and Developments businesses.
Total net revenue amounted to $566.5 million, up 36.1% as compared to what was reported for the same period a year ago. Adjusted EBITDA increased 45.2% to $148 million for the first quarter of 2015.
Caesars Interactive Entertainment generated net revenue of $176.6 million during the three-month period ended March 31. In comparison, the amount of $124.2 million was posted in 2014. The increase in revenue was mainly attributed to strong growth in the division’s social and mobile games, as well as to the inclusion of UK-based gaming company Pacific Interactive. Revenue from social and mobile games amounted to $167.6 million. The WSOP and online real money gaming generated a total of $9 million during the reported period.
Caesars Interactive Entertainment also posted a 101.3% rise in adjusted EBITDA. During the first quarter of 2015, the business generated a total of $62.6 million compared to $31.2 million reported for the same period a year ago. The increase was attributed to the growth in revenue.
Caesars’ Casino Properties and Development business generated revenue of $389.9 million, up 33.5% compared to what was posted back in 2014. Of those, $259 million came from casino operations, $68.3 million from food and beverage, $74.3 million from rooms, and $36.2 million from other operations.
The increase in Casino Properties and Development revenue was primarily attributed to the launch of The Cromwell and Horseshoe Baltimore in May 2014 and August 2014, respectively. The rise in adjusted EBITDA was mainly due to the growth in revenue.
Mitch Garber, Chief Executive Officer of Caesars Acquisition Company, commented on the reported results as “another great quarter” for Caesars Growth Partners. The official attributed the company’s performance to the growth in its two units.
Mr. Garber also pointed out that during the reported period, Caesars Acquisition Company started operating several of the renovated rooms at The LINQ Hotel & Casino Phase II. He said that the operator would remain focused on its businesses in order to keep on yielding solid revenue.
