Published on May 1st, 2017 | by itadmin
Caesars Entertainment Posts Lower-Than-Expected Q4 Results – Shares Slide
Caesars Entertainment Corp (CZR) recently posted their financial results for the fourth quarter of the 2017 fiscal year. The company’s results came in below analyst and market estimates.
Thus, Caesars Entertainment posted net revenues of $2.131 billion, whereas analysts had been expecting $2.22 billion. However, the figure was better than the one achieved during the same quarter of the previous year, when the company posted net revenues of $2.004 billion.
The company generated a net loss of $1.070 billion, which was narrower than the loss they posted in the fourth quarter of the previous year, which was $1.752 billion.
GAAP net loss came in at $7 per share, which was lower than the GAAP net loss posted during the same quarter of the previous year, which was $12.83 per share. Analysts were expecting the company to post losses of $1.65 per share for the fourth quarter of the 2017 financial year, indicating a significant difference.
Caesars Entertainment posted $372 million in adjusted EBITDA, which was 8.4 percent lower than the same period of a year ago, when the company posted adjusted EBITDA of $406 million.
Caesars Entertainment’s property EBITDA declined by 7 percent from the $386 million reported during the same quarter of the previous year to $359 million for this quarter.
For all of 2017, Caesars Entertainment generated net losses of $2.8666 billion, which works out to a net loss of $19.45 per share.
Gary Loveman, the Chief Executive Officer of Caesars Entertainment, stated that the interactive business continued to be strong and sequential improvement as well as new offerings in the hospitality segment had all been instrumental in the company’s performance for the fourth quarter, even with the very disappointing situation at Caesars Palace.
In regards to 2017, Loveman stated that Caesars Entertainment was extremely focused on improving CEOC performance via various cost reduction schemes and by implementing the financial restructuring plan that has already been announced. With over 80 percent of their first lien noteholders backing the plan, Loveman stated the company was committed to coming to an understanding with other groups of creditors to achieve even greater consensus so they could go through the restructuring process as fast as possible.
Caesars Entertainment was trading at $10.2, indicating a drop of 7.44 percent during after-hours trading. The company has been trading between $8.51 and $26.66 over the past 52 weeks. Caesars Entertainment has a market cap of $1.53 billion.