Caesars Entertainment Corporation, the world’s biggest land-based gaming provider, has launched its financial results for the third quarter of 2012 showing a 0.4 percent year-on-year rise in net revenues to $2.198 billion.
The company reported a 0.2 percent year-on-year rise in second-quarter net revenues to $2.165 billion in August. The newest figures pointed out a total net loss after taxes for the third quarter of $505.5 million, which was a rise of some 208.2 percent in comparison to the same period last year, due to what Caesars Entertainment called ‘more competitive markets and the challenges posed by the continuing weakness of the United States economy’.
Third-quarter overall adjusted earnings before interest, tax, depreciation and amortisation rose 0.4 percent year-on-year to $484.5 million. The Caesars Interactive Entertainment Incorporated subsidiary, which handles businesses related to the World Series of Poker (WSOP) brand, an online real-money operation in the UK, alliances with iGaming providers in Italy and France and its Playtika Limited social media and mobile games developer, reported a 186.7 percent boost in net revenues when compared with the same period last year to $62.5 million.
Chairman, President and Chief Executive Officer for Caesars Entertainment, Gary Loveman stated “We continued to make significant progress during the third quarter on a strategy designed to position our company for future growth,”
“We continued to refinance our nearest-term maturities and improve our financial flexibility. In August, we issued $750 million in new debt due in 2020, with proceeds used to refinance debt maturing in 2014 and 2015 and to increase liquidity. In conjunction with this transaction, which closed in October, we extended the maturity of approximately $958 million of term loans from 2015 to 2018 and beyond and repaid approximately $479 million of term loans under our credit facilities.”
“Thanks primarily to growth in our interactive operations and a continued emphasis on expense reductions, we achieved about the same net revenues and adjusted earnings before interest, tax, depreciation and amortisation as in the third quarter of 2011 despite more competitive markets and the challenges posed by the continuing weakness of the U.S. economy.”
“Reflecting the sluggish economic conditions, customer visitation declined in all regions and spend-per-trip declined in several regions. However, Las Vegas saw a nearly eight percent increase in per trip customer spending and Iowa/Missouri and Louisiana/Mississippi experienced modest increases in spend-per-trip.”
“As we enter the fourth quarter, we remain focused on increasing revenues, strengthening our capital structure, investing in growth opportunities in new markets, increasing our brand recognition and controlling expenses. In fact, our efforts to streamline our cost structure resulted in property earnings before interest, tax, depreciation and amortisation gains in three of our six domestic regions including the struggling Atlantic City region.”