Caesars Entertainment, Inc. Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Caesars Entertainment (NASDAQ: CZR) reported its Q4 and full-year 2024 results, showing mixed performance across segments. Q4 saw GAAP net revenues of $2.80 billion, slightly down from $2.83 billion year-over-year, while achieving net income of $11 million compared to a prior-year loss of $72 million.

For the full year 2024, the company posted net revenues of $11.2 billion, down from $11.5 billion in 2023, with a net loss of $278 million versus net income of $786 million in the previous year. Same-store Adjusted EBITDA decreased to $3.7 billion from $3.9 billion.

The Digital segment showed strong iGaming growth of over 60%, though sports betting faced challenges. The company reduced debt by $500 million using WSOP and Promenade sale proceeds and repurchased $50 million in common stock. Management projects stable brick-and-mortar operations and strong Digital segment growth for 2025, with reduced capex forecast at $600 million.

Positive

• Q4 net income of $11M vs prior year loss of $72M
• Digital segment iGaming revenue grew over 60%
• Digital segment EBITDA improved to $117M from $38M year-over-year
• $500M debt reduction in Q4
• Extended debt maturity to 2027

Negative

• Q4 revenue declined to $2.80B from $2.83B
• Full-year net loss of $278M vs income of $786M in 2023
• Same-store Adjusted EBITDA decreased to $3.7B from $3.9B
• Digital segment EBITDA declined to $20M from $29M in Q4
• Regional markets faced competitive pressures

Insights

Financial Analyst

Caesars Entertainment's Q4 and full-year 2024 results reveal a company navigating challenging market conditions with a clear focus on debt reduction and digital growth. For Q4, the company reported $2.80 billion in revenue (down slightly from $2.83 billion) while achieving a modest $11 million net profit compared to a $72 million loss in the prior year period. This profit swing despite revenue pressure demonstrates improved operational efficiency, though same-store Adjusted EBITDA declined by 4.5% to $882 million.

The full-year results paint a more complex picture with revenue declining 2.6% to $11.2 billion and a swing to a $278 million net loss from $786 million in net income. However, this decline was primarily due to a one-time $940 million tax benefit in 2023 rather than operational deterioration. Core operations faced headwinds as evidenced by the 5.1% decline in same-store Adjusted EBITDA to $3.7 billion.

The company's performance reflects a bifurcated market: Las Vegas remains resilient with high occupancy and strong average daily rates, while regional properties face intensifying competition. The late-quarter openings in New Orleans and Danville provided some offset to these regional pressures, but weren't enough to prevent overall performance declines.

Caesars Digital represents a compelling growth story despite quarterly volatility. While Q4 Digital EBITDA fell to $20 million from $29 million due to unfavorable sports betting results, the full-year Digital EBITDA tripled to $117 million. The 60%+ growth in iGaming revenue demonstrates Caesars' ability to capitalize on the higher-margin online casino segment, which provides more stable returns than the volatile sports betting business.

The balance sheet shows meaningful progress in the company's deleveraging strategy. With $12.3 billion in debt and $866 million in cash, Caesars utilized $500 million from asset sales (WSOP and Promenade) for permanent debt reduction while simultaneously repurchasing $50 million in shares. This balanced capital allocation approach signals management's confidence in future cash flow generation.

The 2024 refinancings have strategically positioned Caesars for 2025, extending their nearest debt maturity to 2027 and reducing future interest expenses. Combined with the projected $600 million capex ceiling (excluding Caesars Virginia), this creates a clear pathway for significant free cash flow generation in 2025, which management has committed to using primarily for further deleveraging.

For investors, Caesars presents a company transitioning from growth-focused investments to harvesting cash flow and strengthening its balance sheet. While facing operational challenges in regional markets, the company's strong Las Vegas performance and rapidly growing Digital segment provide offsetting growth vectors that should support improved financial metrics in 2025.

LAS VEGAS & RENO, Nev.--(BUSINESS WIRE)-- Caesars Entertainment, Inc., (NASDAQ: CZR) (“Caesars,” “CZR,” “CEI” or “the Company”) today reported operating results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter Results:

• GAAP net revenues of $2.80 billion versus $2.83 billion for the comparable prior-year period.
• GAAP net income of $11 million compared to a net loss of $72 million for the comparable prior-year period.
• Same-store Adjusted EBITDA of $882 million versus $924 million for the comparable prior-year period.
• Caesars Digital Adjusted EBITDA of $20 million versus $29 million for the comparable prior-year period.

Full Year Results:

• GAAP net revenues of $11.2 billion versus $11.5 billion for the comparable prior-year period.
• GAAP net loss of $278 million compared to a net income of $786 million for the comparable prior-year period, with the decrease primarily driven by the release of $940 million of valuation allowance against deferred tax assets associated with our REIT leases in the prior year.
• Same-store Adjusted EBITDA of $3.7 billion versus $3.9 billion for the comparable prior-year period.
• Caesars Digital Adjusted EBITDA of $117 million versus $38 million for the comparable prior-year period.

Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, “Fourth quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong ADRs; and competitive pressures regionally offset partially by the openings in New Orleans and Danville late in the quarter. Caesars Digital was negatively impacted by sports betting customer friendly outcomes in both October and December offset by over 60% growth in iGaming net revenues. As we look ahead to 2025, the brick and mortar operating environment remains stable and we are expecting another year of strong net revenue and Adjusted EBITDA growth in our Digital segment. When combined with lower capex and cash interest expense, 2025 is expected deliver significant free cash flow which we expect will be used to further reduce leverage.”

Fourth Quarter and Full Year 2024 Financial Results Summary and Segment Information

The following tables present actual 2024 and 2023 results as well as adjustments to net revenues, net income (loss) and Adjusted EBITDA for the effects of our completed divestitures in order to reflect amounts on a same-store basis:

Net Revenues
	Three Months Ended December 31,
(In millions)	2024			2024 Adj.(a)				Adj. 2024 Total			2023				2023 Adj.(a)				Adj. 2023 Total
Las Vegas	$	1,083		$	(6	)		$	1,077		$	1,091			$	(8	)		$	1,083
Regional		1,343			—				1,343			1,363				—				1,363
Caesars Digital		302			—				302			304				—				304
Managed and Branded		68			—				68			68				—				68
Corporate and Other		3			—				3			(1	)			—				(1	)
Caesars	$	2,799		$	(6	)		$	2,793		$	2,825			$	(8	)		$	2,817

Net Revenues
	Years Ended December 31,
(In millions)	2024				2024 Adj.(a)				Adj. 2024 Total				2023			2023 Adj.(a)				Adj. 2023 Total
Las Vegas	$	4,274			$	(25	)		$	4,249			$	4,470		$	(173	)		$	4,297
Regional		5,539				—				5,539				5,778			—				5,778
Caesars Digital		1,163				—				1,163				973			—				973
Managed and Branded		274				—				274				307			—				307
Corporate and Other		(5	)			—				(5	)			—			—				—
Caesars	$	11,245			$	(25	)		$	11,220			$	11,528		$	(173	)		$	11,355

Net Income (Loss)
	Three Months Ended December 31,
(In millions)	2024				2024 Adj.(a)				Adj. 2024 Total				2023				2023 Adj.(a)				Adj. 2023 Total
Las Vegas	$	228			$	(37	)		$	191			$	250			$	(6	)		$	244
Regional		(133	)			—				(133	)			2				—				2
Caesars Digital		288				—				288				(8	)			—				(8	)
Managed and Branded		17				—				17				18				—				18
Corporate and Other		(389	)			—				(389	)			(334	)			—				(334	)
Caesars	$	11			$	(37	)		$	(26	)		$	(72	)		$	(6	)		$	(78	)

Net Income (Loss)
	Years Ended December 31,
(In millions)	2024				2024 Adj.(a)				Adj. 2024 Total				2023				2023 Adj.(a)				Adj. 2023 Total
Las Vegas	$	924			$	(50	)		$	874			$	1,042			$	(36	)		$	1,006
Regional		(18	)			—				(18	)			377				—				377
Caesars Digital		269				—				269				(91	)			—				(91	)
Managed and Branded		71				—				71				101				—				101
Corporate and Other		(1,524	)			—				(1,524	)			(643	)			—				(643	)
Caesars	$	(278	)		$	(50	)		$	(328	)		$	786			$	(36	)		$	750

Adjusted EBITDA (b)
	Three Months Ended December 31,
(In millions)	2024				2024 Adj.(a)				Adj. 2024 Total				2023				2023 Adj.(a)				Adj. 2023 Total
Las Vegas	$	481			$	(3	)		$	478			$	489			$	(6	)		$	483
Regional		410				—				410				431				—				431
Caesars Digital		20				—				20				29				—				29
Managed and Branded		17				—				17				18				—				18
Corporate and Other		(43	)			—				(43	)			(37	)			—				(37	)
Caesars	$	885			$	(3	)		$	882			$	930			$	(6	)		$	924

Adjusted EBITDA (b)
	Years Ended December 31,
(In millions)	2024				2024 Adj.(a)				Adj. 2024 Total				2023				2023 Adj.(a)				Adj. 2023 Total
Las Vegas	$	1,907			$	(16	)		$	1,891			$	2,016			$	(36	)		$	1,980
Regional		1,810				—				1,810				1,962				—				1,962
Caesars Digital		117				—				117				38				—				38
Managed and Branded		71				—				71				76				—				76
Corporate and Other		(166	)			—				(166	)			(154	)			—				(154	)
Caesars	$	3,739			$	(16	)		$	3,723			$	3,938			$	(36	)		$	3,902

____________________

(a)		Adjustment for pre-disposition results of operations reflecting the subtraction of results of operations for Rio All-Suite Hotel & Casino and the LINQ Promenade prior to divestiture, including the associated gain on sale, for the relevant periods. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company’s auditors for the periods presented. The additional financial information is included to enable the comparison of current results with results of prior periods.
(b)		Adjusted EBITDA is not a GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is a widely used measure of operating performance in the gaming industry. See “Reconciliation of GAAP Measures to Non-GAAP Measures” below for a definition of Adjusted EBITDA and a quantitative reconciliation of Adjusted EBITDA to net income (loss), which the Company believes is the most comparable financial measure calculated in accordance with GAAP.

Balance Sheet and Liquidity

As of December 31, 2024, Caesars had $12.3 billion in aggregate principal amount of debt outstanding. Total cash and cash equivalents were $866 million, excluding restricted cash of $150 million.

(In millions)	December 31, 2024			December 31, 2023
Cash and cash equivalents	$	866		$	1,005
Bank debt and loans	$	5,904		$	3,193
Notes		6,346			9,199
Other long-term debt		44			47
Total outstanding indebtedness	$	12,294		$	12,439
Net debt	$	11,428		$	11,434

As of December 31, 2024, our cash on hand and revolving borrowing capacity was as follows:

(In millions)		December 31, 2024
Cash and cash equivalents		$	866
Revolver capacity (a)			2,235
Revolver capacity committed to letters of credit			(84	)
Revolver capacity committed as regulatory requirement			(46	)
Total (b)		$	2,971

___________________

(a)		Revolver capacity includes $2.25 billion under our CEI Revolving Credit Facility, maturing in January 2028 (subject to a springing maturity in the event certain other long-term debt of Caesars is not extended or repaid), and $25 million under the CVA Revolving Credit Facility, maturing on April 26, 2029, less $40 million reserved for specific purposes.
(b)		Excludes approximately $105 million of additional borrowing available under the CVA Delayed Draw Term Loan.

“During the fourth quarter, we used the WSOP and Promenade sale proceeds to permanently reduce debt by $500 million in addition to repurchasing $50 million of our common stock. Our 2024 refinancings have positioned the company to benefit from significant reductions in cash interest expense in 2025 and have extended our closest maturity to 2027. We continue to forecast 2025 full year capital expenditures of $600 million excluding any remaining spend on Caesars Virginia,” said Bret Yunker, Chief Financial Officer.

Reconciliation of GAAP Measures to Non-GAAP Measures

Adjusted EBITDA (described below), a non-GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non-GAAP supplemental information will be helpful in understanding our ongoing operating results. Management has historically used Adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results. Adjusted EBITDA represents net income (loss) before interest income or interest expense, net of interest capitalized, (benefit) provision for income taxes, depreciation and amortization, stock-based compensation expense, (gain) loss on extinguishment of debt, impairment charges, other (income) loss, net income (loss) attributable to noncontrolling interests, transaction costs associated with our acquisitions, developments and divestitures, and non-cash changes in equity method investments. Adjusted EBITDA also excludes the expense associated with certain of our leases as these transactions were accounted for as financing obligations and the associated expense is included in interest expense. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP. Adjusted EBITDA is unaudited and should not be considered an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments, and payments under our leases with affiliates of GLPI and VICI Properties, Inc., which can be significant. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity. Other companies that provide EBITDA information may calculate Adjusted EBITDA differently than we do. The definition of Adjusted EBITDA may not be the same as the definitions used in any of our debt or lease agreements.

Conference Call Information

The Company will host a conference call to discuss the Company’s results on February 25, 2025 at 2 p.m. Pacific Time. Participants may register for the call approximately 15 minutes before the call start time by visiting the following website at https://register.vevent.com/register/BI73d424bd44b74915863c4317d8b76f6f.

Once registered, participants will receive an email with dial-in number and unique PIN number to access the live event. The call will also be accessible on the Investor Relations section of Caesars Entertainment’s website at https://investor.caesars.com.

About Caesars Entertainment, Inc.

Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment company in the US and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. To review our latest CSR report, please visit www.caesars.com/corporate-social-responsibility/csr-reports. Know When To Stop Before You Start.® Gambling Problem? Call 1-800-522-4700. For more information, please visit www.caesars.com/corporate. If you think you or someone you care about may have a gambling problem, call 1-877-770-STOP (1-877-770-7867).

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,” “will likely continue,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release. These risks and uncertainties include, but are not limited to: (a) the impact on our business, financial results and liquidity of economic trends, inflation, public health emergencies, terrorist attacks and other acts of war or hostility, work stoppages and other labor problems, or other economic and market conditions, including reductions in discretionary consumer spending as a result of downturns in the economy and other factors outside our control; (b) the impact of future cybersecurity breaches on our business, financial conditions and results of operations; (c) our ability to successfully operate our digital betting and iGaming platform and expand its user base; (d) risks associated with our leverage and our ability to reduce our leverage; (e) the effects of competition, including new competition in certain of our markets, on our business and results of operations; and (f) additional factors discussed in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Reports on Form 10-K and Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission. Other unknown or unpredictable factors may also cause actual results to differ materially from those projected by the forward-looking statements.

In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.

CAESARS ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended December 31,								Years Ended December 31,
(In millions, except per share data)	2024				2023				2024				2023
NET REVENUES:
Casino	$	1,576			$	1,578			$	6,267			$	6,367
Food and beverage		421				423				1,716				1,728
Hotel		494				509				2,016				2,090
Other		308				315				1,246				1,343
Net revenues		2,799				2,825				11,245				11,528
OPERATING EXPENSES:
Casino		873				866				3,370				3,342
Food and beverage		273				274				1,073				1,049
Hotel		152				144				580				570
Other		98				98				396				434
General and administrative		477				476				1,920				2,012
Corporate		73				67				307				306
Impairment charges		184				95				302				95
Depreciation and amortization		345				318				1,324				1,261
Transaction and other costs, net		(345	)			(49	)			(331	)			(13	)
Total operating expenses		2,130				2,289				8,941				9,056
Operating income		669				536				2,304				2,472
OTHER EXPENSE:
Interest expense, net		(586	)			(581	)			(2,366	)			(2,342	)
Loss on extinguishment of debt		(38	)			—				(89	)			(200	)
Other income (loss)		(2	)			5				27				10
Total other expense		(626	)			(576	)			(2,428	)			(2,532	)
Income (loss) before income taxes		43				(40	)			(124	)			(60	)
Benefit (provision) for income taxes		(19	)			(16	)			(87	)			888
Net income (loss)		24				(56	)			(211	)			828
Net income attributable to noncontrolling interests		(13	)			(16	)			(67	)			(42	)
Net income (loss) attributable to Caesars	$	11			$	(72	)		$	(278	)		$	786
Net income (loss) per share - basic and diluted:
Basic income (loss) per share	$	0.05			$	(0.34	)		$	(1.29	)		$	3.65
Diluted income (loss) per share	$	0.05			$	(0.34	)		$	(1.29	)		$	3.64
Weighted average basic shares outstanding		212				216				215				215
Weighted average diluted shares outstanding		213				216				215				216

CAESARS ENTERTAINMENT, INC. RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO CAESARS TO ADJUSTED EBITDA (UNAUDITED)
	Three Months Ended December 31,								Years Ended December 31,
(In millions)	2024				2023				2024				2023
Net income (loss) attributable to Caesars	$	11			$	(72	)		$	(278	)		$	786
Net income attributable to noncontrolling interests		13				16				67				42
(Benefit) provision for income taxes (a)		19				16				87				(888	)
Other (income) loss (b)		2				(5	)			(27	)			(10	)
Loss on extinguishment of debt		38				—				89				200
Interest expense, net		586				581				2,366				2,342
Impairment charges (c)		184				95				302				95
Depreciation and amortization		345				318				1,324				1,261
Transaction costs and other, net (d)		(334	)			(41	)			(285	)			6
Stock-based compensation expense		21				22				94				104
Adjusted EBITDA		885				930				3,739				3,938
Pre-disposition EBITDA, net (e)		(3	)			(6	)			(16	)			(36	)
Total Adjusted EBITDA	$	882			$	924			$	3,723			$	3,902

____________________

(a)		Benefit for income taxes for the year ended December 31, 2023 includes the release of $940 million of valuation allowance against deferred tax assets.
(b)		Other income for the year ended December 31, 2024 primarily represents a change in estimate of our disputed claims liability.
(c)		Impairment charges for the year ended December 31, 2024 include impairments within our Regional segment as a result of a decrease in projected future cash flows at certain properties primarily due to localized competition and an impairment to a trademark due to the performance of our smallest brand in the Las Vegas segment.
(d)		Transaction costs and other, net primarily includes non-cash losses on the write down and disposal of assets, gains from the sales of the WSOP trademark and the LINQ Promenade, insurance proceeds from property damage, professional services for transaction and integration costs, various contract exit or termination costs, pre-opening costs in connection with new property openings and expansion projects at existing properties, and non-cash changes in equity method investments.
(e)		Adjustment for pre-disposition results of operations reflecting the subtraction of results of operations for Rio All-Suite Hotel & Casino and the LINQ Promenade prior to divestiture, for the relevant periods. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company’s auditors for the periods presented. The additional financial information is included to enable the comparison of current results with results of prior periods.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225763683/en/

Investor Relations: Brian Agnew, bagnew@caesars.com; Charise Crumbley, ccrumbley@caesars.com, 800-318-0047

Media Relations: Kate Whiteley, kwhiteley@caesars.com

Source: Caesars Entertainment, Inc.

FAQ

What were Caesars Entertainment's (CZR) Q4 2024 financial results?

CZR reported Q4 2024 revenues of $2.80 billion and net income of $11 million, with same-store Adjusted EBITDA of $882 million.

How much debt reduction did CZR achieve in Q4 2024?

Caesars reduced debt by $500 million using WSOP and Promenade sale proceeds, plus repurchased $50 million in common stock.

What was CZR's Digital segment performance in Q4 2024?

Digital segment achieved 60% growth in iGaming revenues but faced challenges in sports betting due to customer-friendly outcomes in October and December.

What is Caesars Entertainment's (CZR) capital expenditure forecast for 2025?

CZR forecasts $600 million in capital expenditures for 2025, excluding remaining spend on Caesars Virginia.

How much cash and debt did CZR have at the end of 2024?

As of December 31, 2024, CZR had $12.3 billion in debt and $866 million in cash, excluding $150 million in restricted cash.