{"id":1712,"date":"2021-11-03T09:20:46","date_gmt":"2021-11-03T16:20:46","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=1712"},"modified":"2021-11-03T09:20:46","modified_gmt":"2021-11-03T16:20:46","slug":"caesars-readies-for-full-digital-assault","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/caesars-readies-for-full-digital-assault\/","title":{"rendered":"Caesars readies for full digital assault"},"content":{"rendered":"<h3>Caesars Entertainment Q3<\/h3>\n<h4><strong>The top line<\/strong><\/h4>\n<ul>\n<li>Net revenues of $2.7bn vs. $1.4bn Q321, net loss of $233m vs. -$926m YoY.<\/li>\n<li>Caesars Digital net revenues of $96m ($221m YTD), EBITDA loss of $164m ($171m YTD).<\/li>\n<li>LV net revenues $1.017bn, up 234% YoY $304m; adj. EBITDA of $500m up 44% vs. Q319; regionals $1.54bn vs $1bn Q320, AEBITDA $567m vs. $350m Q320<\/li>\n<li>Caesars had $15.2bn in outstanding debt and $1.1bn on the balance sheet.<\/li>\n<\/ul>\n<p><strong>Bring me your tired, your poor:<\/strong> Praising Caesars\u2019 progress on the digital front, CEO Tom Reeg said the group had recorded Q3 handle of just over $1.7bn, but over the course of October alone handle had reached $1.3bn, which one quick-thinking analyst noted represented c20% share. Reeg pointed out that the group achieved 12% share of OSB handle in non-Liberty states and in the jurisdictions where the Liberty platform was live, share of handle had reached 17%. The handle figure was reached without \u201cadding fantasy (DFS) or horse racing: it\u2019s pure sports betting handle and it continues to generate momentum,\u201d he said.<\/p>\n<p><strong>Up on the roof: <\/strong>Reeg once again talked up the 65 million-strong Caesars rewards program, which he said brought in 30% of new customers to the Caesars sportsbook. Those players made up 50% of its OSB handle during Q3, with many of those players being higher spenders \u201cbetting large amounts and making their way into our system.\u201d<\/p>\n<blockquote><p><em>Sports betting and volumes on parlays had grown significantly thanks to the company launching its marketing campaigns in early August, brand awareness levels had gone \u201cthrough the roof\u201d since then, Reeg said.\u00a0<\/em><\/p><\/blockquote>\n<p><strong>Non-compete:<\/strong> Caesars\u2019 icasino offering however will have to wait until it\u2019s been rejuvenated with fresh content.<\/p>\n<blockquote><p><em>\u201cThe platform is non-competitive,\u201d Reeg said, \u201cwe\u2019ve not spent money promoting icasino until we have a broad array of games. This should take place by year end and we\u2019ll talk more about it then.\u201d\u00a0<\/em><\/p><\/blockquote>\n<p>The hold up revolves around getting content approved in different states, but this wasn\u2019t due to states dragging their feet, Reeg said, \u201cWilliam Hill when it was under UK ownership didn\u2019t provide the resources to its US business to develop its icasino platform and we\u2019re now putting resources into igaming to catch up with OSB.\u201d<\/p>\n<p><strong>Payment plan: <\/strong>Caesars\u2019 focus will be on paying down debt in the next 12 months, Reeg said. It will start the sale process of one of its Strip assets in early 2022 as part of \u201ca massive cash generation\u201d exercise. It will also include the $1.2bn recouped from the sale of Hill\u2019s non-US assets, the sale of its stake in Neo Games (amount undisclosed) and its brick and mortar activities generating $2bn in FCF. Caesars will be very \u201caggressive on the refinancing front to lower debt cost\u201d\u00a0 and expects to have \u201cwell in excess of $5bn cash to deploy\u201d.<\/p>\n<h3>Check out these additional articles on Earnings + More today:<\/h3>\n<ul>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/3-nov-caesars-readies-for-full-digital\" target=\"_blank\" rel=\"noopener\">Red Rocks Resorts Q3<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/3-nov-caesars-readies-for-full-digital\" target=\"_blank\" rel=\"noopener\">Reputation Matters recap<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/3-nov-caesars-readies-for-full-digital\" target=\"_blank\" rel=\"noopener\">First New York OSB licensees to be announced<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Caesars Entertainment Q3 The top line Net revenues of $2.7bn vs. $1.4bn Q321, net loss of $233m vs. -$926m YoY. Caesars Digital net revenues of $96m ($221m YTD), EBITDA loss of $164m ($171m YTD). LV net revenues $1.017bn, up 234% YoY $304m; adj. EBITDA of $500m up 44% vs. Q319; regionals $1.54bn vs $1bn Q320, [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[342,324],"tags":[643,681,682],"class_list":["post-1712","post","type-post","status-publish","format-standard","hentry","category-events","category-news","tag-caesars","tag-red-rocks-resorts","tag-reputation-matters"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=1712"}],"version-history":[{"count":2,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1712\/revisions"}],"predecessor-version":[{"id":1715,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1712\/revisions\/1715"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=1712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=1712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=1712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}