The boss for American casino operator Caesars Entertainment Incorporated has reportedly expressed optimism regarding the coming year due to his firm’s Las Vegas Strip properties recently posting a dramatic rise in hotel bookings.
According to a report from CDC Gaming Reports, Tom Reeg (pictured) serves as Chief Executive Officer for the Nevada company and he used a Thursday conference call with investors to detail that nine of its most recent top-ten booking days had happened in February. The executive moreover purportedly explained that this had represented the most activity his company’s properties in ‘The Silver State’ had seen since re-opening for business in June following the 78-day coronavirus-related shutdown.
Expanded entity:
Caesars Entertainment Incorporated was born in July following the $17.3 billion merger of American casino behemoth Caesars Entertainment Corporation with smaller rival Eldorado Resorts Incorporated. Reeg reportedly told investors that this amalgamation had helped the newly-enlarged entity to chalk up a rise of some 37.4% year-on-year in annual net revenues to around $3.5 billion even as the pandemic pushed operating capacities nationwide down by as much as 75%.
Arresting arrears:
Nevertheless, Reeg reportedly stated that Caesars Entertainment Incorporated had lost about $1.8 billion last year, which was considerably worse than the $81 million profit brought in for the whole of 2019, including in the region of $555 million for the final three months of 2020 as aggregated fourth-quarter receipts tumbled to just $1.5 billion. He purportedly detailed that this had left the operator with approximately $15 billion in long-term debt as well as unrestricted cash reserves of roughly $2 billion.
Friendlier forecast:
Even with these less than stellar financials, Reeg reportedly asserted that he is optimistic his firm’s Las Vegas venues will be able to once again begin hosting group business from as early as the second half of the year. The former Chief Executive Officer for Eldorado Resorts Incorporated furthermore purportedly proclaimed that February hotel bookings have so far been ‘almost like a light switch was flipped’ to fly in the face of the widespread prediction that the industry may have to wat until 2023 to see the fruits of a full-scale recovery.
Bountiful buys:
Away from the financials and Reeg reportedly also divulged that Caesars Entertainment Incorporated has no immediate plans to sell its 2,494-room Planet Hollywood Resort and Casino property and expects the already-agreed $3.7 billion deal to acquire British online sportsbetting innovator William Hill to close by the end of June. He purportedly pronounced that this latter entity is still awaiting approvals from regulators in Indiana and Nevada but could nonetheless finish the year with sportsbook operations in as many as 20 states.
Last month reportedly saw Caesars Entertainment Incorporated procure a minority stake in American daily fantasy sports (DFS) pioneer SuperDraft Incorporated while Reeg reportedly revealed that this deal contains an option that would allow his firm to completely take over the New Hampshire-based enterprise.
Domestic deliberation:
Away from the United States and Reeg reportedly proclaimed that the casino operator intends to renew its contract for the running of Caesars Windsor venue in Canada but that this will likely represent the limit of its non-domestic business. This decision on the company’s future direction was purportedly foreshadowed by its recent move to abandon the plan to build the $767 million Caesars Korea property in South Korea.
Inadvertent insult:
Regarding the South Korea divesture and Inside Asian Gaming reported that Reeg has perhaps unintentionally caused offence after declaring that the property was sold ‘for some barbecue pork.’ Although the executive’s comment was likely meant as a joke in response to a question regarding the price of the move, the source nevertheless expressed disappointment and suggested that the boss should immediately apologize.