Major gambling operator Caesars Entertainment Corp. reported on Tuesday its financial results for the quarter ended June 30, 2016. The company posted net revenue of $1.2 billion, reflecting a 7.8% increase year-on-year. The growth was mainly attributed to the performance of the operator’s Caesars Interactive Entertainment social and mobile gaming business as well as of its hospitality division in Las Vegas.
Casino revenue amounted to $545 million for the period in review, up 0.4% from the same three months of 2015.
The gambling operator reported net loss of $2 billion for the second quarter compared to net income totaling $50 million for the same period of 2015. The figure posted was to a great extent driven by $2 billion accrued in relation to Caesars Entertainment Operating Company’s restructuring. The major gambling operator’s operating unit voluntarily filed for Chapter 11 bankruptcy protection last year.
Caesars Entertainment reported adjusted EBITDA of $388 million for the three months ended June 30, 2016, up 11.8%.
Net revenue from Caesars Interactive Entertainment increased 33.9% during this year’s second quarter to reach a total of $249 million. The company pointed out that the growth was mainly driven by a rise in the monthly monetization rate of unique paying players in its social and mobile segment.
The interactive division reported net loss of $4 million compared to a net income of $43 million generated during the second quarter of 2015. The decline was mainly attributed to a $66-million expense related to fair value adjustment of Caesars Interactive Entertainment’s stock-based compensation awards. The business generated adjusted EBITDA of $100 million during the quarter in review, up 42.9% year-on-year.
Caesars Entertainment also posted information about its divisions’ performance during the six months ended June 30, 2016. Net revenue totaled $2.4 billion for the period in question, up 7.2% from the $2.2 billion generated during the first half of 2016. Casino revenue amounted to $1.075 billion, down 0.9% year-on-year. Adjusted EBITDA was up 13.7% year-on-year to $737 million.
Commenting on the results posted, Caesars Entertainment President and CEO Mark Frissora said in a statement that the company delivered solid operating performance during this year’s second quarter. The executive added that their productivity efforts resulted in improved revenue per employee and marketing efficiency. As for what is coming next, Mr. Frissora said that the gambling operator will remain committed to driving further improvement in margin and cash flow while maintaining high satisfaction levels among employees and customers alike.
The results posted did not include proceeds from Caesars Entertainment Operating Company.
