On February 25, Caesars Q4 earnings report was revealed with missing estimates and declining profit compared to last year. The entertainment company fell short of market expectations in the fourth quarter of 2024, with net revenue from its Las Vegas and regional properties dropping compared to the previous year.
The Reno-based gaming giant, which runs eight casino hotels on the Las Vegas Strip, reported $2.8 billion in net revenue for the last three months of 2024, down slightly from $2.83 billion in Q4 2023. According to financial reports, Caesars earned over $1.08 billion in net revenue from its Las Vegas operations during the quarter, showing a year-over-year drop of less than 1%.
Caesar’s Q4 Earnings Report
Caesars Entertainment had strong earnings in Q4 2024, but its revenue fell short. Las Vegas operations stayed solid with 96% room occupancy, though adjusted EBITDAR dropped by 1% from last year. The digital segment stood out, with net revenue rising by 20%, highlighting the company’s focus on digital growth.
The Entertainment company reported $2.8 billion in revenue for the quarter, slightly below the forecast of $2.89 billion. However, earnings per share exceeded expectations at $0.05, beating the projected $0.01. For the full year 2024, the company posted net revenues of $11.2 billion and an impressive EBITDA of $3.7 billion, with a solid margin of 33.2%. Las Vegas same-store net revenues reached $1.1 billion, reflecting steady performance in the region.
Flamingo Las Vegas Restaurant Gains Spotlight
During Tuesday’s fourth-quarter and year-end earnings call, the focus shifted back to the familiar spots on the Strip, with discussions about Flamingo Las Vegas, Caesars Palace, and even Planet Hollywood. CEO Tom Reeg shared, “We launched Gordon Ramsay’s Burger and Pinky’s at Flamingo, bringing life to the Strip frontage there for the first time since we acquired Caesars.”
Gordon Ramsay Burger opened at Flamingo in January, just six weeks after Pinky’s by Vanderpump made its debut. Meanwhile, Carmella Italian Restaurant & Lounge opened at Planet Hollywood on December 29. The restaurants have garnered a large number of customers, contributing to the overall earnings of the company.
Caesars Stock Update
Caesars Entertainment’s stock experienced notable movement last week, closing at $56.20 on the day before the earnings call. Following the announcement of its fourth-quarter and year-end results, the stock saw a slight increase, rising to $57.50 by the end of the week, marking a 2.3% gain.
Despite the mixed earnings report, with revenue falling short of expectations, the strong performance in digital segments and exceeded earnings per share expectations helped boost investor confidence.
