Caesars Digital Q3 2022 revenue jumps 120% as EBITDA losses shrink
Casino and sportsbook operator reports 6.4% group revenue increase reflecting a new quarterly record
Caesars has reported a 120.8% year-on-year (YOY) rise in revenue from its digital division during Q3 2022 to $212m, up from just $96m a year prior.
Releasing its financial results for the period, the Las Vegas-headquartered firm revealed narrowing digital same-store adjusted EBITDA of a negative $38m, down more than 77% from the $164m loss posted by the firm in the same period of 2021.
Caesars Digital’s negative net income figures also narrowed during Q3, shrinking 67% YOY from a negative $190m to a figure of negative $63m in the period.
Digital proved to be the leading segment of Caesars’ wider business during Q3 and was the only division to post a triple-digit YOY increase in its net revenue during the quarter.
Caesars’ flagship Las Vegas operations reported a 5.1% YOY increase in its revenue to just over $1bn, while the group’s regional casino empire saw Q3 net revenue increase by just 0.1% to $1.5bn in the same period.
Losses were revealed in the group’s managed and branded division, where revenue slid 1.4% YOY to $70m, and the Caesars corporate division, which saw net revenue fall to a loss of $2m.
At a group level, Caesars posted net revenue of $2.9bn during Q3, up 6.4% YOY to $2.8bn.
Its net income returned to positivity during Q3, rising from a 2021 net loss of $233m to a positive figure of $52m 12 months later.
Caesars’ same-store adjusted EBITDA rose 13.6% in Q3 to $10bn, rising to $1.05bn when excluding the Caesars Digital segment.
Caesars Entertainment CEO Tom Reeg welcomed the group’s performance during the period, singling out both Caesars’ brick-and-mortar operations and digital for particular praise in his remarks.
“Our third-quarter results reflect a new quarterly record for consolidated adjusted EBITDA,” Reeg said.
“Results in the quarter also reflect a new quarterly record for our brick-and-mortar properties led by a new all-time high third-quarter EBITDA performance in our regional segment and continued strength in Las Vegas.
“Caesars Digital reported strong revenue growth in the quarter and a smaller than expected EBITDA loss driven by improved operating efficiencies,” the Caesars Entertainment CEO added.
The operator’s share price rose 2.04% on the positive results to a closing price of $44.90 on the NASDAQ stock exchange.