Caesars third quarter: regional casinos grow, Las Vegas declines

Caesars Entertainment released its third quarter results on Tuesday. Las Vegas revenue fell 2% to $930 million. Adjusted EBITDA dropped 10% to $343 million, and net profit fell 40% to $79 million.

Regional casinos supported the company. Revenue in this segment rose 6% to $1.6 billion, and adjusted EBITDA increased 3.5% to $524 million. In the first nine months of the year, regional EBITDA grew 4.5% to $1.4 billion.

Caesars Digital increased revenue by 5% to $326 million. Adjusted EBITDA rose 57% to $44 million. Net income swung from a $21 million loss last year to a $4 million profit.

The $17.6 billion merger with Fertitta Entertainment was announced in May and is expected to close in the middle of next year. Shareholders approved the merger on September 22 with 65% support. When the deal closes, the company will become a private company, and $11.6 billion in debt will be assumed as part of the merger.

CEO Tom Reeg said that a business managed in 90-day periods is not healthy. Reeg also said he would not be surprised if one or two properties were sold.