Caesars optimistic for intrastate despite heavy losses
Interactive division drives revenue growth, but operator sees FY losses pass US$300m.
Caesars Entertainment remains positive about regulatory online developments in New Jersey and Nevada in the light of the operator’s egaming arm contributing to full-year revenue growth.
Its online division, encompassing real-money Caesars Interactive Entertainment (CIE) and social businesses Playtika and Bingo Blitz, was seen as the main driver in revenues from the operator’s ‘other’ category doubling year-on-year to US$275.7m for the year ended 31 December.
However the company recorded an overall US$343m operating loss for the period after what chief financial officer Donald Colvin described as “Tangible and intangible non-cash impairment charges.”
The period saw Caesars Interactive Entertainment acquire Bingo Blitz operator Buffalo Studios for an undisclosed amount in December last year, while in the same month it was given approval to offer online poker in Nevada and will be able to go live once software partner 888 is approved by the state’s gaming commission. eGaming Review understands this will be in July or August this year.
Caesars is also eagerly awaiting the decision of New Jersey Governor Chris Christie on amendments to legislation in the Garden State, with the politician saying last week there was “no reason not to sign” the modified bill into law today.
Gary Loveman, Caesars’ chief executive, said in an analyst call yesterday: “We’re optimistic that the legislature will adopt the government’s recommendations and that he will sign the amended bill imminently.”
Group net revenues rose 29.1% year-on-year, predominantly due to the fillip offered by CIE, while the start of 2013 has seen the business roll out a social poker app on Facebook in partnership with Electronic Arts.
The full-year results were the first since the arrival of Colvin who has also taken the role of executive vice president with the operator.