LAS VEGAS, Nev. (FOX5) – Monday, Caesars Entertainment held their 4th quarter earnings call after major sports events in the valley such as Formula 1 and the Super Bowl.
Leaders also addressed the Oakland A’s coming to Las Vegas.
Anthony Carano, president and chief operating officer of Caesars Entertainment said the company generated 7 percent of revenue growth and 22 percent adjusted EBITDA growth.
EBITDA means earnings before interest, taxes, depreciation, and amortization.
“While we clearly had a strong year in Las Vegas, we remain optimistic for 2024 and beyond,” he said. “Forward occupancy and ADRs remain strong, and the outlook for group and convention remains encouraging.”
Tom Reeg, CEO of Caesars, said room revenue was up despite fewer nights. Food and beverage revenue was also up double digits. He said their Formula 1 expectations were close.
“As you’ll recall in prior quarters, we talked about F1 as a big stimulator of demand for us,” he said. “We had been talking about a 5% lift in EBITDA in the quarter from F1. Our actual experience was about a 4% lift.”
In the Q&A portion of the call, Reeg was asked is F1 can be a successful non-high end event. He says the key piece is pricing of the actual event.
“The lowest end ticket was pricey by any definition as you looked at it,” he said. “Last year, we’re working with F1 and I’d expect there is a – there will be more approachable participation at not the very highest end of the market. That’s going to be helpful for properties that maybe didn’t get to participate as much this year.”
Reeg was also asked about the outcome of the Oakland A’s and its timing. He says the MLB team’s outcome does not change what Caesars is pursuing. He says they are finishing the Versailles connector and work at Flamingo to improve Strip frontage.
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