Caesars Entertainment Q1 Revenue Trails Expectations

The coronavirus took a major toll on Caesars, which shuttered all its North American properties in March.
Author:
Publish date:

Shares of Caesars Entertainment  (CZR) - Get Report eased in after-hours trading, after the casino owner reported that revenue fell more than expected in the first quarter.

On March 17, the company closed all of its North American properties in response to the coronavirus pandemic. Last month Caesars announced it would furlough 90% of its workers at those locations and in its corporate offices.

Revenue dropped 14% in the first quarter to $1.83 billion from $2.12 billion a year earlier. Analysts polled by FactSet predicted revenue of $2.01 billion for the latest quarter.

Net income registered $189 million in the latest quarter, with a net loss of 36 cents per diluted share, compared to a loss of $217 million, or 32 cents per share a year ago.

“Our first quarter performance reflects the significant revenue declines we experienced as a result of the closures and stable year over year labor costs in March, as we continued to provide pay and benefits to our team members for the first two weeks of the closure period," Caesars CEO Tony Rodio said in a statement.

Also Monday, the company announced that it plans to resume operations at some properties when permitted by applicable government or tribal bodies.

“In Las Vegas, Atlantic City, Council Bluffs and Lake Tahoe, Caesars plans to reopen properties in phases in line with anticipated business demand,” Caesars said in a statement.

The company will follow guidelines from public health authorities to ensure safe re-openings, it said.

Caesars shares stood at $9.65, down 0.21% in after-hours trading. The stock slid 0.31% in the regular session and has dropped 32% over the last three months.