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Caesars Entertainment Reports Fourth Quarter and Full Year 2018 Results
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Caesars Entertainment Corporation reported fourth quarter and full-year 2018 results as summarized in the discussion below, which highlights certain GAAP and non-GAAP financial measures on a consolidated basis.
Fourth Quarter GAAP Highlights
- Fourth quarter net revenues increased 11.3%, or $214 million, from $1.90 billion to $2.12 billion, primarily due to inclusion of the results of Centaur Holdings, LLC (“Centaur”), which was acquired during the third quarter, and an additional five days of results of CEOC, LLC (“CEOC”), which emerged from bankruptcy on October 6, 2017.
- Fourth quarter net income decreased 90.1%, or $1.81 billion, from $2.00 billion to $198 million, primarily as a result of a large nonrecurring tax benefit recognized in the fourth quarter of 2017 relating to U.S. tax reform and CEOC’s emergence from bankruptcy.
Fourth Quarter Enterprise-wide Highlights (Non-GAAP)
- Enterprise-wide fourth quarter net revenues increased 7.4%, or $145 million, from $1.97 billion to $2.12 billion.
- Enterprise-wide fourth quarter adjusted EBITDAR increased 12.1%, or $61 million, from $506 million to $567 million.
- Enterprise-wide fourth quarter adjusted EBITDAR margin increased 110 basis points to 26.8%.
- Enterprise-wide Las Vegas fourth quarter net revenues increased 7.8%, or $69 million, from $880 million to $949 million. Enterprise-wide Las Vegas fourth quarter adjusted EBITDAR increased 18.2%, or $54 million, from $297 million to $351 million, while Enterprise-wide Las Vegas fourth quarter adjusted EBITDAR margin increased 320 basis points to 37.0%.
Full Year GAAP Highlights
- Full year net revenues increased 72.4%, or $3.52 billion, from $4.87 billion to $8.39 billion due to the inclusion of the results of CEOC and Centaur.
- Full year net income improved $671 million, from a loss of $368 million to income of $303 million.
Full Year Enterprise-wide Highlights (Non-GAAP)
- Enterprise-wide full year net revenues increased 2.7%, or $224 million, from $8.17 billion to $8.39 billion. Enterprise-wide full year hold adjusted net revenues increased 2.6%, or $215 million, from $8.20 billion to $8.42 billion.
- Enterprise-wide full year adjusted EBITDAR increased 4.6%, or $102 million, from $2.21 billion to $2.31 billion. Enterprise-wide full year hold adjusted EBITDAR increased 4.1%, or $92 million, from $2.24 billion to $2.33 billion.
- Enterprise-wide full year adjusted EBITDAR margin increased 50 basis points to 27.5%.
- Enterprise-wide Las Vegas full year net revenues increased 2.5%, or $91 million, from $3.66 billion to $3.75 billion. Enterprise-wide Las Vegas full year adjusted EBITDAR increased 4.9%, or $64 million, from $1.30 billion to $1.36 billion, while Enterprise-wide Las Vegas full year adjusted EBITDAR margin increased 90 basis points to 36.3%.
- Domestic marketing costs represented 20.1% of gross revenue, down 160 basis points year over year, and labor costs represented 23.6% of gross revenue, down 30 basis points year over year.
“In 2018, Caesars delivered a fourth consecutive year of higher net revenues and adjusted EBITDAR, as well as expanded margins,” said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment. “Caesars’ solid performance is due in part to further labor productivity improvements and, in 2018, over $140 million of marketing efficiencies. Our casino properties, including in Las Vegas and Indiana, performed well, partially offset by the impact of new competition in Atlantic City. We also launched the first installments of our asset-lite, branding and licensing strategy by opening the Caesars Bluewaters Dubai Resort, announcing another non-gaming resort scheduled to open next year in Cabo San Lucas as well as a new tribal partnership in Northern California, and our first non-gaming hotel in the U.S., Caesars Republic, in Scottsdale, Arizona. This year, Caesars will implement more efficiency and growth initiatives, including expanded sports betting. While we will be making additional value-added investments in the business this year, including the CAESARS FORUM meeting center on the Las Vegas Strip, our financial priority over the next few years is to further de-lever the balance sheet,” he added.
Additional Developments
On November 1, 2018, the Company announced that President and Chief Executive Officer Mark P. Frissora is leaving the Company, having led a successful operational and financial transformation and established a platform for future growth. To support a seamless transition, Mr. Frissora has agreed to remain in his current role until April 30, 2019 (which the Company may extend by one month). The Compensation and Management Development Committee of the Company’s Board of Directors as well as the Chairman of the Board of Directors have retained a nationally recognized third-party search firm to identify Mr. Frissora’s successor.
On January 30, 2019, Caesars announced the rebranding of Total Rewards, the Company’s industry-leading loyalty program, to Caesars Rewards effective February 1, 2019. The new program leverages the premium Caesars brand to better connect Caesars’ elevated standard and prestige with the Company’s global destinations.
Basis of Presentation
In accordance with U.S. GAAP, the results of CEOC and certain of its U.S. subsidiaries were not consolidated with Caesars from January 15, 2015 until October 6, 2017. Additionally, Caesars deconsolidated the results of its Horseshoe Baltimore property in the third quarter of 2017. Note that certain additional non-GAAP financial measures have been added to highlight the results of the Company including CEOC. “Enterprise-wide” results reported herein include CEOC as if its results were consolidated during all periods, but remove the deconsolidated Horseshoe Baltimore property from all periods presented. On July 16, 2018, Caesars completed the acquisition of Centaur. “2018 Data Excluding Centaur” removes the post-acquisition results of Centaur from Caesars’ consolidated results. “Hold adjusted” results are adjusted to reflect the hold we achieved compared to the hold we expected. See the tables at the end of this press release for the reconciliation of non-GAAP to GAAP presentations. The intent of the Enterprise-wide information is to illustrate certain comparable results based on the current consolidation structure. For Enterprise-wide result reconciliations by region, see the historical information supplement in the Investor Relations section of www.caesars.com.
This release also includes the indicators ADR and RevPAR. See Supplemental Information in this release for information regarding how we define ADR and RevPAR. Our definition and calculation of ADR and RevPAR may be different than the definition and calculation of similarly titled indicators presented by other companies.
Caesars also adopted ASC 606: Revenue from Contracts with Customers, effective January 1, 2018, using the full retrospective method, which requires the Company to recast each prior reporting period presented consistent with the new standard.
Financial Results
Caesars views each casino property as an operating segment and aggregates such casino properties into three regionally-focused reportable segments: (i) Las Vegas, (ii) Other U.S. and (iii) All Other, which is consistent with how Caesars manages the business. The results of our reportable segments presented below are consistent with the way management assesses these results and allocates resources, which is a consolidated view that adjusts for the effect of certain transactions among reportable segments within Caesars. “All Other” includes managed, international and other properties as well as parent and other adjustments to reconcile to consolidated Caesars results.
Net Revenues |
|||||||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||||||||||||||||
(Dollars in millions) |
2018 |
2017 |
$ Change |
% Change |
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||||
Las Vegas |
$ |
949 |
$ |
860 |
$ |
89 |
10.3% |
$ |
3,753 |
$ |
2,902 |
$ |
851 |
29.3% |
|||||||||||||||
Other U.S. |
1,014 |
888 |
126 |
14.2% |
4,047 |
1,758 |
2,289 |
130.2% |
|||||||||||||||||||||
All Other |
152 |
153 |
(1) |
(0.7)% |
591 |
208 |
383 |
184.1% |
|||||||||||||||||||||
Caesars |
$ |
2,115 |
$ |
1,901 |
$ |
214 |
11.3% |
$ |
8,391 |
$ |
4,868 |
$ |
3,523 |
72.4% |
During the fourth quarter of 2018, net revenues improved $214 million as compared to 2017 driven primarily by a $126 million increase in Other U.S. revenues resulting from the acquisition of Centaur as well as an $89 million increase in Las Vegas revenues resulting from an additional five days of results compared to the prior year from consolidating CEOC’s portfolio, which includes Caesars Palace.
The year-over-year comparison is not meaningful due to the magnitude of consolidating the results of CEOC and Centaur.
Net Revenues – Enterprise-wide (Non-GAAP) (1) |
|||||||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||||||||||||||||
(Dollars in millions) |
2018 |
2017 |
$ Change |
% Change |
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||||
Las Vegas |
$ |
949 |
$ |
880 |
$ |
69 |
7.8% |
$ |
3,753 |
$ |
3,662 |
$ |
91 |
2.5% |
|||||||||||||||
Other U.S. |
1,014 |
928 |
86 |
9.3% |
4,047 |
3,883 |
164 |
4.2% |
|||||||||||||||||||||
All Other |
152 |
162 |
(10) |
(6.2)% |
591 |
622 |
(31) |
(5.0)% |
|||||||||||||||||||||
Caesars |
$ |
2,115 |
$ |
1,970 |
$ |
145 |
7.4% |
$ |
8,391 |
$ |
8,167 |
$ |
224 |
2.7% |
____________________ |
(1) See the Reconciliation of Net Income/(Loss) Attributable to Caesars Entertainment Corporation to Adjusted EBITDAR, which includes a reconciliation for Enterprise-wide net revenues and adjusted EBITDAR. |
During the fourth quarter of 2018, enterprise-wide net revenues improved $145 million as compared to 2017 driven primarily by an $86 million increase in Other U.S. revenues resulting from the acquisition of Centaur. Excluding Centaur, Other U.S. net revenues were $893 million for the fourth quarter of 2018, a decrease of $35 million from 2017 which is primarily due to increased competition in Atlantic City and other regions. Las Vegas net revenues increased $69 million year-over-year as the fourth quarter of 2017 was negatively impacted by the October 1 tragedy in Las Vegas. Las Vegas ADR and RevPAR increased by 6.3% and 10.9%, respectively, driving year-over-year non-gaming revenue improvement. Las Vegas occupancy was 93.8% in the quarter, up from 89.9% in 2017. All Other net revenues decreased $10 million primarily due to unfavorable hold at our international properties. Across all of our casinos, hold had a favorable impact of $16 million compared to the prior year and was $5 million to $10 million above our expectation.
During the year ended December 31, 2018, enterprise-wide net revenues improved $224 million as compared to 2017 driven primarily by a $164 million increase in Other U.S. revenues resulting from the acquisition of Centaur. Excluding Centaur, Other U.S. net revenues were $3.82 billion for the year ended December 31, 2018, a decrease of $62 million from 2017 primarily due to increased competition in Atlantic City and other regions. Las Vegas net revenues increased $91 million primarily due to increased gaming volume and higher room rates. Las Vegas ADR and RevPAR increased 2.3% and 2.1%, respectively, driving year-over-year non-gaming revenue improvement. Las Vegas occupancy remained relatively flat year-over-year. All Other net revenues decreased $31 million primarily due to unfavorable hold at our international properties. Across all of our casinos, hold had a favorable impact of $9 million compared to the prior year and was $25 million to $30 million below our expectation.
Income/(Loss) from Operations |
|||||||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||||||||||||||||
(Dollars in millions) |
2018 |
2017 |
$ Change |
% Change |
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||||
Las Vegas |
$ |
181 |
$ |
134 |
$ |
47 |
35.1% |
$ |
716 |
$ |
549 |
$ |
167 |
30.4% |
|||||||||||||||
Other U.S. |
45 |
76 |
(31) |
(40.8)% |
434 |
199 |
235 |
118.1% |
|||||||||||||||||||||
All Other |
(126) |
(56) |
(70) |
(125.0)% |
(411) |
(211) |
(200) |
(94.8)% |
|||||||||||||||||||||
Caesars |
$ |
100 |
$ |
154 |
$ |
(54) |
(35.1)% |
$ |
739 |
$ |
537 |
$ |
202 |
37.6% |
Enterprise-wide income/(loss) from operations is not presented as adjustments to property, plant, and equipment (“PP&E”) at emergence distorts year-over-year comparability.
During the fourth quarter of 2018, the post-acquisition results of Centaur contributed $27 million to income from operations. Excluding Centaur, income from operations decreased $81 million primarily as a result of impairments of tangible and other intangible assets of $35 million and impairments of goodwill of $43 million.
During the year ended December 31, 2018, the consolidation of CEOC’s results contributed to an increase of $219 million to income from operations while the post-acquisition results of Centaur contributed $49 million to income from operations in 2018, partially offset by a decrease of $16 million in income from operations due to the deconsolidation of Horseshoe Baltimore’s results subsequent to August 31, 2017. Excluding CEOC, Centaur and Horseshoe Baltimore, income from operations decreased $50 million primarily as a result of higher depreciation expense due to significant additions to property and equipment that began depreciating upon the completion of major renovation projects at certain Las Vegas properties in 2018 as well as higher nonrecurring charges in the current year related to lease termination costs, losses on asset sales, and acquisition costs for Centaur.
Net Income/(Loss) Attributable to Caesars |
|||||||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||||||||||||||||
(Dollars in millions) |
2018 |
2017 |
$ Change |
% Change |
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||||
Las Vegas |
$ |
98 |
$ |
80 |
$ |
18 |
22.5% |
$ |
392 |
$ |
484 |
$ |
(92) |
(19.0)% |
|||||||||||||||
Other U.S. |
(98) |
(236) |
138 |
58.5% |
(122) |
(103) |
(19) |
(18.4)% |
|||||||||||||||||||||
All Other |
198 |
2,160 |
(1,962) |
(90.8)% |
33 |
(749) |
782 |
* |
|||||||||||||||||||||
Caesars |
$ |
198 |
$ |
2,004 |
$ |
(1,806) |
(90.1)% |
$ |
303 |
$ |
(368) |
$ |
671 |
* |
____________________ |
* Percentage is not meaningful. |
Enterprise-wide net income/(loss) attributable to Caesars is not presented as adjustments to PP&E, debt and the financial obligation at emergence distorts year-over-year comparability.
During the fourth quarter of 2018, in addition to the $54 million decrease in income from operations discussed above, a decrease of $2.04 billion in tax benefit and a nonrecurring benefit of $322 million for restructuring and support expenses in 2017 primarily drove the year-over-year decrease in net income attributable to Caesars. In the fourth quarter of 2017, Caesars recognized a tax benefit relating to U.S. tax reform and CEOC’s emergence from bankruptcy. These were partially offset by an increase in other income of $374 million primarily due to a change in the fair value of the derivative liability related to the conversion option of CEC’s 5.00% convertible senior notes maturing in 2024 (the “CEC Convertible Notes”) as well as a nonrecurring loss on extinguishment of debt of $215 million and a decrease in interest expense of $23 million related to the debt refinancing in 2017.
During the year ended December 31, 2018, in addition to the $202 million increase in income from operations discussed above, nonrecurring restructuring expenses of approximately $2.03 billion in 2017 primarily drove the year-over-year increase in net income/(loss) attributable to Caesars. In addition, an increase in other income of $696 million primarily due to a change in the fair value of the derivative liability related to the CEC Convertible Notes and a decrease in loss on extinguishment of debt of $231 million related to the debt refinancing in 2017 also contributed to the increase in net income/(loss) attributable to Caesars. These were partially offset by a decrease of $1.87 billion in tax benefit as a result of Caesars recognizing a tax benefit relating to U.S. tax reform and CEOC’s emergence from bankruptcy in 2017. Additionally, an increase in interest expense of $573 million primarily as a result of our failed sale-leaseback financing obligations with VICI Properties Inc. (“VICI”) that began incurring interest in the fourth quarter of 2017, a nonrecurring gain of $31 million recognized during the deconsolidation of Horseshoe Baltimore in the third quarter of 2017, and a decrease of $8 million in net (income)/loss attributable to noncontrolling interests also partially offset the increase in net income/(loss) attributable to Caesars.
Adjusted EBITDAR (1) |
|||||||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||||||||||||||||
(Dollars in millions) |
2018 |
2017 |
$ Change |
% Change |
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||||
Las Vegas |
$ |
351 |
$ |
291 |
$ |
60 |
20.6% |
$ |
1,362 |
$ |
1,007 |
$ |
355 |
35.3% |
|||||||||||||||
Other U.S. |
230 |
201 |
29 |
14.4% |
1,014 |
398 |
616 |
154.8% |
|||||||||||||||||||||
All Other |
(14) |
— |
(14) |
* |
(68) |
(44) |
(24) |
(54.5)% |
|||||||||||||||||||||
Caesars |
$ |
567 |
$ |
492 |
$ |
75 |
15.2% |
$ |
2,308 |
$ |
1,361 |
$ |
947 |
69.6% |
____________________ |
(1) See the Reconciliation of Net Income/(Loss) Attributable to Caesars Entertainment Corporation to Adjusted EBITDAR. |
* Percentage is not meaningful. |
During the fourth quarter of 2018, adjusted EBITDAR improved $75 million as compared to 2017 driven primarily by a $60 million increase in Las Vegas adjusted EBITDAR resulting from an additional five days of results compared to the prior year from consolidating CEOC’s portfolio, which includes Caesars Palace, and a $29 million increase in Other U.S. adjusted EBITDAR resulting from the acquisition of Centaur.
The year-over-year comparison is not meaningful due to the magnitude of consolidating the results of CEOC and Centaur.
Adjusted EBITDAR – Enterprise-wide (Non-GAAP) (1) |
|||||||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||||||||||||||||
(Dollars in millions) |
2018 |
2017 |
$ Change |
% Change |
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||||
Las Vegas |
$ |
351 |
$ |
297 |
$ |
54 |
18.2% |
$ |
1,362 |
$ |
1,298 |
$ |
64 |
4.9% |
|||||||||||||||
Other U.S. |
230 |
208 |
22 |
10.6% |
1,014 |
926 |
88 |
9.5% |
|||||||||||||||||||||
All Other |
(14) |
1 |
(15) |
* |
(68) |
(18) |
(50) |
* |
|||||||||||||||||||||
Caesars |
$ |
567 |
$ |
506 |
$ |
61 |
12.1% |
$ |
2,308 |
$ |
2,206 |
$ |
102 |
4.6% |
____________________ |
(1) See the Reconciliation of Net Income/(Loss) Attributable to Caesars Entertainment Corporation to Adjusted EBITDAR, which includes a reconciliation for Enterprise-wide net revenues and adjusted EBITDAR. |
* Percentage is not meaningful. |
During the fourth quarter of 2018, enterprise-wide adjusted EBITDAR increased by $61 million as compared to 2017 driven primarily by a $54 million increase in Las Vegas adjusted EBITDAR as a result of higher gaming, hotel, and food and beverage revenues. Excluding Centaur, Other U.S. adjusted EBITDAR was $191 million for the fourth quarter of 2018, a decrease of $17 million from 2017 which is primarily due to increased competition in Atlantic City and other regions. All Other adjusted EBITDAR decreased by $15 million primarily due to unfavorable hold at our international properties and an increase in expense. Across all of our casinos, hold had a favorable impact of $21 million compared to the prior year and was $5 million to $10 million above our expectations.
During the year ended December 31, 2018, enterprise-wide adjusted EBITDAR increased by $102 million as compared to 2017 driven primarily by an $88 million increase in Other U.S. adjusted EBITDAR resulting from the acquisition of Centaur. Excluding Centaur, Other U.S. adjusted EBITDAR was $943 million for the year ended December 31, 2018, an increase of $17 million from 2017 primarily due to marketing and labor efficiency improvements offset by increased competition in Atlantic City and other regions. Las Vegas adjusted EBITDAR increased by $64 million year-over-year as a result of higher gaming, hotel, and food and beverage revenues. All Other adjusted EBITDAR decreased $50 million primarily due to unfavorable hold at our international properties and an increase in expense. Across all of our casinos, hold had a favorable impact of $10 million compared to the prior year and was $18 million to $23 million below our expectations.
Cash and Available Revolver Capacity
(In millions) |
December 31, 2018 |
||
Cash and cash equivalents |
$ |
1,491 |
|
Revolver capacity |
1,200 |
||
Revolver capacity drawn or committed to letters of credit |
(175) |
||
Total liquidity |
$ |
2,516 |
Conference Call Information
Caesars Entertainment Corporation (NASDAQ: CZR) will host a conference call at 2:45 p.m. Pacific Time Thursday, February 21, 2019, to discuss its fourth quarter results, certain forward-looking information and other matters related to Caesars Entertainment Corporation, including certain financial and other information. The press release, webcast, and presentation materials will be available on the Investor Relations section of www.caesars.com.
If you would like to ask questions and be an active participant in the call, you may dial 877-637-3723, or 832-412-1752 for international callers, and enter Conference ID 7348255 approximately 10 minutes before the call start time. A recording of the live call will be available on the Company’s website for 90 days after the event. Supplemental materials have been posted on the Caesars Entertainment Investor Relations website at http://investor.caesars.com/events-and-presentations.
About Caesars
Caesars Entertainment is the world’s most diversified casino-entertainment provider and the most geographically diverse U.S. casino-entertainment company. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment’s resorts operate primarily under the Caesars®, Harrah’s® and Horseshoe® brand names. Caesars Entertainment’s portfolio also includes the Caesars Entertainment UK family of casinos. Caesars Entertainment is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. Caesars Entertainment is committed to environmental sustainability and energy conservation and recognizes the importance of being a responsible steward of the environment. For more information, please visit www.caesars.com/corporate.
Forward Looking Information
This release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. We have based these forward-looking statements on our current expectations about future events. Further, these statements contain words such as “may,” “continue,” “focus,” “will,” “expect,” “believe,” “positioned,” “initiatives,” “execute,” or “strategy,” or the negative or other variations thereof or comparable terminology. In particular, they include statements relating to, among other things, future actions, new projects, strategies, future performance, the outcomes of contingencies, such as legal proceedings, and future financial results of Caesars. These forward-looking statements are based on current expectations and projections about future events.
Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified, and, consequently, the actual performance of Caesars Entertainment may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, and other factors described from time to time in Caesars Entertainment’s reports filed with the Securities and Exchange Commission (including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein):
- our ability to respond to changes in the industry, particularly digital transformation, and to take advantage of the opportunity for legalized sports betting in multiple jurisdictions in the United States (which may require third-party arrangements and/or regulatory approval);
- development of our announced convention center in Las Vegas, CAESARS FORUM, and certain of our other announced projects are subject to risks associated with new construction projects, including those described below;
- we may not be able to realize the anticipated benefits of our acquisition of Centaur, including anticipated benefits from introducing table games to the acquired properties, which is subject to approvals and may not occur;
- the impact of our operating structure following CEOC’s emergence from bankruptcy;
- the effects of local and national economic, credit, and capital market conditions on the economy, in general, and on the gaming industry, in particular;
- the effect of reductions in consumer discretionary spending due to economic downturns or other factors and changes in consumer demands;
- the ability to realize improvements in our business and results of operations through our property renovation investments, technology deployments, business process improvement initiatives and other continuous improvement initiatives;
- the ability to take advantage of opportunities to grow our revenue;
- the ability to use net operating losses to offset future taxable income as anticipated;
- the ability to realize all of the anticipated benefits of current or potential future acquisitions;
- the ability to effectively compete against our competitors;
- the financial results of our consolidated businesses;
- the impact of our substantial indebtedness, including its impact on our ability to raise additional capital in the future and react to changes in the economy, and lease obligations and the restrictions in our debt and lease agreements;
- the ability to access available and reasonable financing or additional capital on a timely basis and on acceptable terms or at all, including our ability to refinance our indebtedness on acceptable terms;
- the ability of our customer tracking, customer loyalty, and yield management programs to continue to increase customer loyalty and hotel sales;
- changes in the extensive governmental regulations to which we are subject and (i) changes in laws, including increased tax rates, smoking bans, regulations, or accounting standards, (ii) third-party relations, and (iii) approvals, decisions, disciplines and fines of courts, regulators, and governmental bodies;
- compliance with the extensive laws and regulations to which we are subject, including applicable gaming laws, the Foreign Corrupt Practices Act and other anti-corruption laws, and the Bank Secrecy Act and other anti-money laundering laws;
- our ability to recoup costs of capital investments through higher revenues;
- growth in consumer demand for non-gaming offerings;
- abnormal gaming holds (“gaming hold” is the amount of money that is retained by the casino from wagers by customers);
- the effects of competition, including locations of competitors, growth of online gaming, competition for new licenses, and operating and market competition;
- our ability to protect our intellectual property rights and damages caused to our brands due to the unauthorized use of our brand names by third parties in ways outside of our control;
- the ability to timely and cost-effectively integrate companies that we acquire into our operations;
- the ability to execute on our brand licensing and management strategy is subject to third party agreements and other risks associated with new projects;
- not being able to realize all of our anticipated cost savings;
- the potential difficulties in employee retention, recruitment, and motivation, including in connection with our Chief Executive Officer transition;
- our ability to retain our performers or other entertainment offerings on acceptable terms or at all;
- the risk of fraud, theft, and cheating;
- seasonal fluctuations resulting in volatility and an adverse effect on our operating results;
- any impairments to goodwill, indefinite-lived intangible assets, or long-lived assets that we may incur;
- construction factors, including delays, increased costs of labor and materials, availability of labor and materials, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, and building permit issues;
- the impact of adverse legal proceedings and judicial and governmental body actions, including gaming legislative action, referenda, regulatory disciplinary actions, and fines and taxation;
- acts of war or terrorist incidents, severe weather conditions, uprisings, or natural disasters, including losses therefrom, losses in revenues and damage to property, and the impact of severe weather conditions on our ability to attract customers to certain facilities of ours;
- fluctuations in energy prices;
- work stoppages and other labor problems;
- our ability to collect on credit extended to our customers;
- the effects of environmental and structural building conditions relating to our properties and our exposure to environmental liability, including as a result of unknown environmental contamination;
- a disruption, failure, or breach of our network, information systems, or other technology, or those of our vendors, on which we are dependent;
- risks and costs associated with protecting the integrity and security of internal, employee and customer data;
- access to insurance for our assets on reasonable terms; and
- the impact, if any, of unfunded pension benefits under multi-employer pension plans.
Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Caesars Entertainment disclaims any obligation to update the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this release.
CAESARS ENTERTAINMENT CORPORATION |
|||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
|||||||||||||||
(UNAUDITED) |
|||||||||||||||
Three Months Ended |
Years Ended December 31, |
||||||||||||||
(In millions, except per share data) |
2018 |
2017 |
2018 |
2017 |
|||||||||||
Revenues |
|||||||||||||||
Casino |
$ |
1,100 |
$ |
969 |
$ |
4,247 |
$ |
2,168 |
|||||||
Food and beverage |
392 |
365 |
1,574 |
982 |
|||||||||||
Rooms |
369 |
332 |
1,519 |
1,074 |
|||||||||||
Other revenue |
189 |
175 |
789 |
584 |
|||||||||||
Management fees |
14 |
12 |
60 |
12 |
|||||||||||
Reimbursed management costs |
51 |
48 |
202 |
48 |
|||||||||||
Net revenues |
2,115 |
1,901 |
8,391 |
4,868 |
|||||||||||
Operating expenses |
|||||||||||||||
Direct |
|||||||||||||||
Casino |
637 |
554 |
2,393 |
1,213 |
|||||||||||
Food and beverage |
283 |
267 |
1,106 |
693 |
|||||||||||
Rooms |
121 |
115 |
480 |
360 |
|||||||||||
Property, general, administrative, and other |
421 |
400 |
1,761 |
1,124 |
|||||||||||
Reimbursable management costs |
51 |
48 |
202 |
48 |
|||||||||||
Depreciation and amortization |
302 |
278 |
1,145 |
626 |
|||||||||||
Impairment of goodwill |
43 |
— |
43 |
— |
|||||||||||
Impairment of tangible and other intangible assets |
35 |
— |
35 |
— |
|||||||||||
Corporate expense |
95 |
73 |
332 |
202 |
|||||||||||
Other operating costs |
27 |
12 |
155 |
65 |
|||||||||||
Total operating expenses |
2,015 |
1,747 |
7,652 |
4,331 |
|||||||||||
Income from operations |
100 |
154 |
739 |
537 |
|||||||||||
Interest expense |
(341) |
(364) |
(1,346) |
(773) |
|||||||||||
Gain on deconsolidation of subsidiaries |
— |
— |
— |
31 |
|||||||||||
Restructuring and support expenses |
— |
322 |
— |
(2,028) |
|||||||||||
Loss on extinguishment of debt |
— |
(215) |
(1) |
(232) |
|||||||||||
Other income |
452 |
78 |
791 |
95 |
|||||||||||
Income/(loss) before income taxes |
211 |
(25) |
183 |
(2,370) |
|||||||||||
Income tax benefit/(provision) |
(13) |
2,029 |
121 |
1,995 |
|||||||||||
Net income/(loss) |
198 |
2,004 |
304 |
(375) |
|||||||||||
Net (income)/loss attributable to noncontrolling interests |
— |
— |
(1) |
7 |
|||||||||||
Net income/(loss) attributable to Caesars |
$ |
198 |
$ |
2,004 |
$ |
303 |
$ |
(368) |
|||||||
Earnings/(loss) per share – basic and diluted |
|||||||||||||||
Basic earnings/(loss) per share |
$ |
0.29 |
$ |
3.01 |
$ |
0.44 |
$ |
(1.32) |
|||||||
Diluted earnings/(loss) per share |
0.25 |
2.48 |
0.41 |
(1.32) |
CAESARS ENTERTAINMENT CORPORATION |
|||||||
CONSOLIDATED CONDENSED BALANCE SHEETS |
|||||||
(UNAUDITED) |
|||||||
As of December 31, |
|||||||
(In millions) |
2018 |
2017 |
|||||
Assets |
|||||||
Current assets |
|||||||
Cash and cash equivalents ($14 and $58 attributable to our VIEs) |
$ |
1,491 |
$ |
2,558 |
|||
Restricted cash |
115 |
116 |
|||||
Receivables, net |
457 |
494 |
|||||
Due from affiliates, net |
6 |
11 |
|||||
Prepayments and other current assets ($6 and $2 attributable to our VIEs) |
155 |
239 |
|||||
Inventories |
41 |
39 |
|||||
Total current assets |
2,265 |
3,457 |
|||||
Property and equipment, net ($137 and $57 attributable to our VIEs) |
16,045 |
16,154 |
|||||
Goodwill |
4,044 |
3,815 |
|||||
Intangible assets other than goodwill |
2,977 |
1,609 |
|||||
Restricted cash |
51 |
35 |
|||||
Deferred income taxes |
10 |
2 |
|||||
Deferred charges and other assets ($35 and $0 attributable to our VIEs) |
383 |
364 |
|||||
Total assets |
$ |
25,775 |
$ |
25,436 |
|||
Liabilities and Stockholders’ Equity |
|||||||
Current liabilities |
|||||||
Accounts payable ($41 and $3 attributable to our VIEs) |
$ |
399 |
$ |
318 |
|||
Accrued expenses and other current liabilities ($1 and $0 attributable to our VIEs) |
1,217 |
1,326 |
|||||
Interest payable |
56 |
38 |
|||||
Contract liabilities |
144 |
129 |
|||||
Current portion of financing obligations |
20 |
9 |
|||||
Current portion of long-term debt |
164 |
64 |
|||||
Total current liabilities |
2,000 |
1,884 |
|||||
Financing obligations |
10,057 |
9,355 |
|||||
Long-term debt |
8,801 |
8,849 |
|||||
Deferred income taxes |
730 |
577 |
|||||
Deferred credits and other liabilities ($5 and $0 attributable to our VIEs) |
849 |
1,474 |
|||||
Total liabilities |
22,437 |
22,139 |
|||||
Stockholders’ equity |
|||||||
Common stock |
7 |
7 |
|||||
Treasury stock |
(485) |
(152) |
|||||
Additional paid-in capital |
14,124 |
14,040 |
|||||
Accumulated deficit |
(10,372) |
(10,675) |
|||||
Accumulated other comprehensive income/(loss) |
(24) |
6 |
|||||
Total Caesars stockholders’ equity |
3,250 |
3,226 |
|||||
Noncontrolling interests |
88 |
71 |
|||||
Total stockholders’ equity |
3,338 |
3,297 |
|||||
Total liabilities and stockholders’ equity |
$ |
25,775 |
$ |
25,436 |
CAESARS ENTERTAINMENT CORPORATION |
|||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
Years Ended December 31, |
|||||||
(In millions) |
2018 |
2017 |
|||||
Cash flows from operating activities |
|||||||
Net income/(loss) |
$ |
304 |
$ |
(375) |
|||
Adjustments to reconcile net income/(loss) to cash flows from operating activities: |
|||||||
Non-cash change in restructuring accrual |
— |
2,065 |
|||||
Interest accrued on financing obligations |
142 |
27 |
|||||
Deferred income taxes |
(145) |
(1,858) |
|||||
Gain on deconsolidation of subsidiaries |
— |
(31) |
|||||
Depreciation and amortization |
1,145 |
626 |
|||||
Loss on extinguishment of debt |
1 |
232 |
|||||
Change in fair value of derivative liability |
(697) |
(64) |
|||||
Stock-based compensation expense |
79 |
43 |
|||||
Amortization of deferred finance costs and debt discount/premium |
15 |
26 |
|||||
Provision for doubtful accounts |
21 |
8 |
|||||
Impairment of goodwill |
43 |
— |
|||||
Impairment of intangible and tangible assets |
35 |
— |
|||||
Other non-cash adjustments to net income/(loss) |
(28) |
32 |
|||||
Net changes in: |
|||||||
Accounts receivable |
14 |
(75) |
|||||
Due from affiliates, net |
5 |
(55) |
|||||
Inventories, prepayments and other current assets |
76 |
64 |
|||||
Deferred charges and other assets |
(69) |
(26) |
|||||
Accounts payable |
(78) |
(4) |
|||||
Interest payable |
19 |
(35) |
|||||
Accrued expenses |
(101) |
15 |
|||||
Contract liabilities |
18 |
3 |
|||||
Restructuring accruals |
— |
(2,880) |
|||||
Deferred credits and other liabilities |
(6) |
(63) |
|||||
Other |
(7) |
2 |
|||||
Cash flows provided by/(used in) operating activities |
786 |
(2,323) |
|||||
Cash flows from investing activities |
|||||||
Acquisition of businesses, net of cash and restricted cash acquired |
(1,578) |
561 |
|||||
Acquisition of property and equipment, net of change in related payables |
(565) |
(598) |
|||||
Deconsolidation of subsidiary cash |
— |
(57) |
|||||
Consolidation of Korea Joint Venture |
— |
19 |
|||||
Payments to acquire certain gaming rights |
(20) |
— |
|||||
Payments to acquire investments |
(22) |
(12) |
|||||
Proceeds from the sale and maturity of investments |
43 |
33 |
|||||
Other |
7 |
(1) |
|||||
Cash flows used in investing activities |
(2,135) |
(55) |
|||||
Cash flows from financing activities |
|||||||
Proceeds from long-term debt and revolving credit facilities |
1,167 |
7,550 |
|||||
Debt issuance and extension costs and fees |
(5) |
(288) |
|||||
Repayments of long-term debt and revolving credit facilities |
(1,130) |
(7,846) |
|||||
Proceeds from sale-leaseback financing arrangement |
745 |
1,136 |
|||||
Proceeds from the issuance of common stock |
6 |
11 |
|||||
Repurchase of common stock |
(311) |
— |
|||||
Distribution of CIE sale proceeds |
— |
(63) |
|||||
Taxes paid related to net share settlement of equity awards |
(22) |
(11) |
|||||
Financing obligation payments |
(173) |
(54) |
|||||
Contributions from noncontrolling interest owners |
20 |
— |
|||||
Distributions to noncontrolling interest owners |
— |
(6) |
|||||
Cash flows provided by financing activities |
297 |
429 |
|||||
Net decrease in cash, cash equivalents, and restricted cash |
(1,052) |
(1,949) |
|||||
Cash, cash equivalents, and restricted cash, beginning of period |
2,709 |
4,658 |
|||||
Cash, cash equivalents, and restricted cash, end of period |
$ |
1,657 |
$ |
2,709 |
|||
Supplemental Cash Flow Information |
|||||||
Cash paid for interest |
$ |
1,169 |
$ |
749 |
|||
Cash paid for income taxes |
8 |
7 |
|||||
Non-Cash Settlement of Accrued Restructuring and Support Expenses |
|||||||
Issuance of convertible notes and call right |
— |
2,349 |
|||||
Issuance of CEC common stock |
— |
3,435 |
|||||
Other non-cash investing and financing activities: |
|||||||
Change in accrued capital expenditures |
149 |
(6) |
|||||
Deferred consideration for acquisition of Centaur |
66 |
— |
CAESARS ENTERTAINMENT CORPORATION
SUPPLEMENTAL INFORMATION
Average daily rate (“ADR”) is calculated as the cash or comp revenue recognized during the period divided by the corresponding rooms occupied. Total ADR is calculated as total room revenue divided by total rooms occupied.
Revenue per available room (“RevPar”) is calculated as the total room revenue recognized during the period divided by total room nights available for the period.
Property earnings before interest, taxes, depreciation and amortization, and rent (“EBITDAR”) is presented as a measure of the Company’s performance. Property EBITDAR is defined as revenues less property operating expenses and is comprised of net income/(loss) before (i) interest expense, including finance obligation expenses, net of interest capitalized and interest income, (ii) income tax provision, (iii) depreciation and amortization, (iv) corporate expenses, (v) certain items that the Company does not consider indicative of its ongoing operating performance at an operating property level, and (vi) lease payments associated with our financing obligation.
In evaluating property EBITDAR you should be aware that, in the future, the Company may incur expenses that are the same or similar to some of the adjustments in this presentation. The presentation of property EBITDAR should not be construed as an inference that future results will be unaffected by unusual or unexpected items.
Property EBITDAR is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income/(loss) as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with accounting principles generally accepted in the United States (“GAAP” or “U.S. GAAP”)). Property EBITDAR may not be comparable to similarly titled measures reported by other companies within the industry. Property EBITDAR is included because management uses property EBITDAR to measure performance and allocate resources, and believes that property EBITDAR provides investors with additional information consistent with that used by management.
Adjusted EBITDAR is defined as EBITDAR further adjusted to exclude certain non-cash and other items as exhibited in the following reconciliation, and is presented as a supplemental measure of the Company’s performance. Management believes that adjusted EBITDAR provides investors with additional information and allows a better understanding of the results of operational activities separate from the financial impact of decisions made for the long-term benefit of the Company. In addition, compensation of management is in part determined by reference to certain of such financial information. As a result, we believe this supplemental information is useful to investors who are trying to understand the results of the Company.
Adjusted EBITDAR margin is calculated as adjusted EBITDAR divided by net revenues. Adjusted EBITDAR margin is included because management uses adjusted EBITDAR margin to measure performance and allocate resources, and believes that adjusted EBITDAR margin provides investors with additional information consistent with that used by management.
Because not all companies use identical calculations, the presentation of adjusted EBITDAR and adjusted EBITDAR margin may not be comparable to other similarly titled measures of other companies.
In addition, we present adjusted EBITDAR, further adjusted to (i) show the impact on the period of the hold we achieved versus the hold we expected and (ii) exclude the results of Centaur. Management believes presentation of this further adjusted information allows a better understanding of the materiality of those impacts relative to the Company’s overall performance.
The following tables reconcile net income/(loss) attributable to Caesars Entertainment Corporation to property EBITDAR and adjusted EBITDAR for the periods indicated and reconcile hold adjusted results and results excluding Centaur.
CAESARS ENTERTAINMENT CORPORATION |
|||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||||||||||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR |
|||||||||||||||||||||||||||||||
Three Months Ended December 31, 2018 |
Three Months Ended December 31, 2017 |
||||||||||||||||||||||||||||||
(Dollars in millions) |
Las Vegas |
Other U.S. |
All Other (g) |
CEC |
Las Vegas |
Other U.S. |
All Other (g) |
CEC |
|||||||||||||||||||||||
Net income/(loss) attributable to Caesars |
$ |
98 |
$ |
(98) |
$ |
198 |
$ |
198 |
$ |
80 |
$ |
(236) |
$ |
2,160 |
$ |
2,004 |
|||||||||||||||
Net income/(loss) attributable to noncontrolling interests |
— |
1 |
(1) |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Income tax (benefit)/provision |
— |
— |
13 |
13 |
— |
(2) |
(2,027) |
(2,029) |
|||||||||||||||||||||||
Restructuring and support expenses (a) |
— |
— |
— |
— |
— |
177 |
(499) |
(322) |
|||||||||||||||||||||||
Loss on extinguishment of debt |
— |
— |
— |
— |
— |
1 |
214 |
215 |
|||||||||||||||||||||||
Other (income)/losses (b) |
1 |
— |
(453) |
(452) |
(3) |
— |
(75) |
(78) |
|||||||||||||||||||||||
Interest expense 1 |
82 |
142 |
117 |
341 |
57 |
136 |
171 |
364 |
|||||||||||||||||||||||
Depreciation and amortization 2 |
159 |
130 |
13 |
302 |
143 |
120 |
15 |
278 |
|||||||||||||||||||||||
Impairment of goodwill |
— |
17 |
26 |
43 |
— |
— |
— |
— |
|||||||||||||||||||||||
Impairment of tangible and other intangible assets |
— |
26 |
9 |
35 |
— |
— |
— |
— |
|||||||||||||||||||||||
Corporate expense |
— |
— |
95 |
95 |
— |
— |
73 |
73 |
|||||||||||||||||||||||
Other operating costs (c) |
10 |
8 |
9 |
27 |
8 |
— |
4 |
12 |
|||||||||||||||||||||||
Property EBITDAR |
350 |
226 |
26 |
602 |
285 |
196 |
36 |
517 |
|||||||||||||||||||||||
Corporate expense |
— |
— |
(95) |
(95) |
— |
— |
(73) |
(73) |
|||||||||||||||||||||||
Stock-based compensation expense (d) |
2 |
3 |
19 |
24 |
2 |
2 |
13 |
17 |
|||||||||||||||||||||||
Other items (e) |
(1) |
1 |
36 |
36 |
4 |
3 |
24 |
31 |
|||||||||||||||||||||||
Adjusted EBITDAR |
$ |
351 |
$ |
230 |
$ |
(14) |
$ |
567 |
$ |
291 |
$ |
201 |
$ |
— |
$ |
492 |
|||||||||||||||
Net revenues |
$ |
949 |
$ |
1,014 |
$ |
152 |
$ |
2,115 |
$ |
860 |
$ |
888 |
$ |
153 |
$ |
1,901 |
|||||||||||||||
Adjusted EBITDAR margin (f) |
37.0% |
22.7% |
(9.2)% |
26.8% |
33.8% |
22.6% |
—% |
25.9% |
|||||||||||||||||||||||
Interest expense on debt |
$ |
— |
$ |
2 |
$ |
112 |
$ |
114 |
$ |
— |
$ |
6 |
$ |
169 |
$ |
175 |
|||||||||||||||
Interest expense on financing obligations |
82 |
140 |
5 |
227 |
57 |
130 |
2 |
189 |
|||||||||||||||||||||||
1Interest expense |
$ |
82 |
$ |
142 |
$ |
117 |
$ |
341 |
$ |
57 |
$ |
136 |
$ |
171 |
$ |
364 |
|||||||||||||||
Cash payments on financing obligations (incl. principal) |
$ |
72 |
$ |
162 |
$ |
— |
$ |
234 |
$ |
63 |
$ |
151 |
$ |
— |
$ |
214 |
|||||||||||||||
Depreciation and amortization expense |
$ |
111 |
$ |
63 |
$ |
13 |
$ |
187 |
$ |
98 |
$ |
47 |
$ |
15 |
$ |
160 |
|||||||||||||||
Depreciation on failed sale-leaseback assets |
48 |
67 |
— |
115 |
45 |
73 |
— |
118 |
|||||||||||||||||||||||
2Depreciation and amortization |
$ |
159 |
$ |
130 |
$ |
13 |
$ |
302 |
$ |
143 |
$ |
120 |
$ |
15 |
$ |
278 |
CAESARS ENTERTAINMENT CORPORATION |
|||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||||||||||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR |
|||||||||||||||||||||||||||||||
Year Ended December 31, 2018 |
Year Ended December 31, 2017 |
||||||||||||||||||||||||||||||
(Dollars in millions) |
Las Vegas |
Other U.S. |
All Other (g) |
CEC |
Las Vegas |
Other U.S. |
All Other (g) |
CEC |
|||||||||||||||||||||||
Net income/(loss) attributable to Caesars |
$ |
392 |
$ |
(122) |
$ |
33 |
$ |
303 |
$ |
484 |
$ |
(103) |
$ |
(749) |
$ |
(368) |
|||||||||||||||
Net income/(loss) attributable to noncontrolling interests |
— |
2 |
(1) |
1 |
— |
(7) |
— |
(7) |
|||||||||||||||||||||||
Income tax benefit |
— |
— |
(121) |
(121) |
— |
(2) |
(1,993) |
(1,995) |
|||||||||||||||||||||||
Gain on deconsolidation of subsidiary |
— |
— |
— |
— |
— |
(31) |
— |
(31) |
|||||||||||||||||||||||
Restructuring and support expenses (a) |
— |
— |
— |
— |
— |
177 |
1,851 |
2,028 |
|||||||||||||||||||||||
Loss on extinguishment of debt |
— |
— |
1 |
1 |
4 |
13 |
215 |
232 |
|||||||||||||||||||||||
Other income (b) |
(3) |
(2) |
(786) |
(791) |
(4) |
(1) |
(90) |
(95) |
|||||||||||||||||||||||
Interest expense 1 |
327 |
556 |
463 |
1,346 |
65 |
153 |
555 |
773 |
|||||||||||||||||||||||
Depreciation and amortization 2 |
582 |
501 |
62 |
1,145 |
420 |
186 |
20 |
626 |
|||||||||||||||||||||||
Impairment of goodwill |
— |
17 |
26 |
43 |
— |
— |
— |
— |
|||||||||||||||||||||||
Impairment of tangible and other intangible assets |
— |
26 |
9 |
35 |
— |
— |
— |
— |
|||||||||||||||||||||||
Corporate expense |
— |
— |
332 |
332 |
— |
— |
202 |
202 |
|||||||||||||||||||||||
Other operating costs (c) |
52 |
21 |
82 |
155 |
25 |
3 |
37 |
65 |
|||||||||||||||||||||||
Property EBITDAR |
1,350 |
999 |
100 |
2,449 |
994 |
388 |
48 |
1,430 |
|||||||||||||||||||||||
Corporate expense |
— |
— |
(332) |
(332) |
— |
— |
(202) |
(202) |
|||||||||||||||||||||||
Stock-based compensation expense (d) |
8 |
10 |
61 |
79 |
4 |
3 |
36 |
43 |
|||||||||||||||||||||||
Other items (e) |
4 |
5 |
103 |
112 |
9 |
7 |
74 |
90 |
|||||||||||||||||||||||
Adjusted EBITDAR |
$ |
1,362 |
$ |
1,014 |
$ |
(68) |
$ |
2,308 |
$ |
1,007 |
$ |
398 |
$ |
(44) |
$ |
1,361 |
|||||||||||||||
Net revenues |
$ |
3,753 |
$ |
4,047 |
$ |
591 |
$ |
8,391 |
$ |
2,902 |
$ |
1,758 |
$ |
208 |
$ |
4,868 |
|||||||||||||||
Adjusted EBITDAR margin (f) |
36.3% |
25.1% |
(11.5)% |
27.5% |
34.7% |
22.6% |
(21.2)% |
28.0% |
|||||||||||||||||||||||
Interest expense on debt |
$ |
2 |
$ |
4 |
$ |
451 |
$ |
457 |
$ |
8 |
$ |
23 |
$ |
553 |
$ |
584 |
|||||||||||||||
Interest expense on financing obligations |
325 |
552 |
12 |
889 |
57 |
130 |
2 |
189 |
|||||||||||||||||||||||
1Interest expense |
$ |
327 |
$ |
556 |
$ |
463 |
$ |
1,346 |
$ |
65 |
$ |
153 |
$ |
555 |
$ |
773 |
|||||||||||||||
Cash payments on financing obligations (incl. principal) |
$ |
248 |
$ |
477 |
$ |
— |
$ |
725 |
$ |
63 |
$ |
151 |
$ |
— |
$ |
214 |
|||||||||||||||
Depreciation and amortization expense |
$ |
383 |
$ |
210 |
$ |
62 |
$ |
655 |
$ |
375 |
$ |
113 |
$ |
20 |
$ |
508 |
|||||||||||||||
Depreciation on failed sale-leaseback assets |
199 |
291 |
— |
490 |
45 |
73 |
— |
118 |
|||||||||||||||||||||||
2Depreciation and amortization |
$ |
582 |
$ |
501 |
$ |
62 |
$ |
1,145 |
$ |
420 |
$ |
186 |
$ |
20 |
$ |
626 |
CAESARS ENTERTAINMENT CORPORATION |
|||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION – 2018 DATA EXCLUDING CENTAUR |
|||||||||||||||||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR |
|||||||||||||||||||||||||||
Three Months Ended December 31, 2018 |
Three Months Ended December 31, 2018 |
||||||||||||||||||||||||||
(Dollars in millions) |
CEC |
Less: |
CEC |
Las Vegas |
Other U.S. |
All Other (g) |
CEC |
||||||||||||||||||||
Net income/(loss) attributable to Caesars |
$ |
198 |
$ |
(27) |
$ |
171 |
$ |
98 |
$ |
(125) |
$ |
198 |
$ |
171 |
|||||||||||||
Net income/(loss) attributable to noncontrolling interests |
— |
— |
— |
— |
1 |
(1) |
— |
||||||||||||||||||||
Income tax provision |
13 |
— |
13 |
— |
— |
13 |
13 |
||||||||||||||||||||
Other (income)/losses (b) |
(452) |
— |
(452) |
1 |
— |
(453) |
(452) |
||||||||||||||||||||
Interest expense |
341 |
— |
341 |
82 |
142 |
117 |
341 |
||||||||||||||||||||
Depreciation and amortization |
302 |
(10) |
292 |
159 |
120 |
13 |
292 |
||||||||||||||||||||
Impairment of goodwill |
43 |
— |
43 |
— |
17 |
26 |
43 |
||||||||||||||||||||
Impairment of tangible and other intangible assets |
35 |
— |
35 |
— |
26 |
9 |
35 |
||||||||||||||||||||
Corporate expense |
95 |
— |
95 |
— |
— |
95 |
95 |
||||||||||||||||||||
Other operating costs (c) |
27 |
(2) |
25 |
10 |
6 |
9 |
25 |
||||||||||||||||||||
Property EBITDAR |
602 |
(39) |
563 |
350 |
187 |
26 |
563 |
||||||||||||||||||||
Corporate expense |
(95) |
— |
(95) |
— |
— |
(95) |
(95) |
||||||||||||||||||||
Stock-based compensation expense (d) |
24 |
— |
24 |
2 |
3 |
19 |
24 |
||||||||||||||||||||
Other items (e) |
36 |
— |
36 |
(1) |
1 |
36 |
36 |
||||||||||||||||||||
Adjusted EBITDAR |
$ |
567 |
$ |
(39) |
$ |
528 |
$ |
351 |
$ |
191 |
$ |
(14) |
$ |
528 |
|||||||||||||
Net revenues |
$ |
2,115 |
$ |
(121) |
$ |
1,994 |
$ |
949 |
$ |
893 |
$ |
152 |
$ |
1,994 |
|||||||||||||
Adjusted EBITDAR margin (f) |
26.8% |
32.2% |
26.5% |
37.0% |
21.4% |
(9.2)% |
26.5% |
CAESARS ENTERTAINMENT CORPORATION |
|||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION – 2018 DATA EXCLUDING CENTAUR |
|||||||||||||||||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR |
|||||||||||||||||||||||||||
Year Ended December 31, 2018 |
Year Ended December 31, 2018 |
||||||||||||||||||||||||||
(Dollars in millions) |
CEC |
Less: |
CEC |
Las Vegas |
Other U.S. |
All Other (g) |
CEC |
||||||||||||||||||||
Net income/(loss) attributable to Caesars |
$ |
303 |
$ |
(49) |
$ |
254 |
$ |
392 |
$ |
(171) |
$ |
33 |
$ |
254 |
|||||||||||||
Net income/(loss) attributable to noncontrolling interests |
1 |
— |
1 |
— |
2 |
(1) |
1 |
||||||||||||||||||||
Income tax benefit |
(121) |
— |
(121) |
— |
— |
(121) |
(121) |
||||||||||||||||||||
Loss on extinguishment of debt |
1 |
— |
1 |
— |
— |
1 |
1 |
||||||||||||||||||||
Other income (b) |
(791) |
— |
(791) |
(3) |
(2) |
(786) |
(791) |
||||||||||||||||||||
Interest expense |
1,346 |
— |
1,346 |
327 |
556 |
463 |
1,346 |
||||||||||||||||||||
Depreciation and amortization |
1,145 |
(18) |
1,127 |
582 |
483 |
62 |
1,127 |
||||||||||||||||||||
Impairment of goodwill |
43 |
— |
43 |
— |
17 |
26 |
43 |
||||||||||||||||||||
Impairment of tangible and other intangible assets |
35 |
— |
35 |
— |
26 |
9 |
35 |
||||||||||||||||||||
Corporate expense |
332 |
— |
332 |
— |
— |
332 |
332 |
||||||||||||||||||||
Other operating costs (c) |
155 |
(4) |
151 |
52 |
17 |
82 |
151 |
||||||||||||||||||||
Property EBITDAR |
2,449 |
(71) |
2,378 |
1,350 |
928 |
100 |
2,378 |
||||||||||||||||||||
Corporate expense |
(332) |
— |
(332) |
— |
— |
(332) |
(332) |
||||||||||||||||||||
Stock-based compensation expense (d) |
79 |
— |
79 |
8 |
10 |
61 |
79 |
||||||||||||||||||||
Other items (e) |
112 |
— |
112 |
4 |
5 |
103 |
112 |
||||||||||||||||||||
Adjusted EBITDAR |
$ |
2,308 |
$ |
(71) |
$ |
2,237 |
$ |
1,362 |
$ |
943 |
$ |
(68) |
$ |
2,237 |
|||||||||||||
Net revenues |
$ |
8,391 |
$ |
(226) |
$ |
8,165 |
$ |
3,753 |
$ |
3,821 |
$ |
591 |
$ |
8,165 |
|||||||||||||
Adjusted EBITDAR margin (f) |
27.5% |
31.4% |
27.4% |
36.3% |
24.7% |
(11.5)% |
27.4% |
CAESARS ENTERTAINMENT CORPORATION |
|||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION – ENTERPRISE-WIDE 2017 DATA |
|||||||||||||||||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR |
|||||||||||||||||||||||||||
Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2017 |
||||||||||||||||||||||||||
(Dollars in millions) |
CEC |
CEOC |
Enterprise- |
Las Vegas |
Other U.S. |
All Other (g) |
Enterprise- |
||||||||||||||||||||
Net income/(loss) attributable to Caesars |
$ |
2,004 |
$ |
9,884 |
$ |
11,888 |
$ |
(2,381) |
$ |
(3,562) |
$ |
17,831 |
$ |
11,888 |
|||||||||||||
Net income/(loss) attributable to noncontrolling interests |
— |
(19) |
(19) |
— |
(21) |
2 |
(19) |
||||||||||||||||||||
Net income from discontinued operations |
— |
(26) |
(26) |
— |
— |
(26) |
(26) |
||||||||||||||||||||
Income tax benefit |
(2,029) |
(6) |
(2,035) |
— |
(2) |
(2,033) |
(2,035) |
||||||||||||||||||||
Restructuring and support expenses (a) |
(322) |
(9,835) |
(10,157) |
2,467 |
3,529 |
(16,153) |
(10,157) |
||||||||||||||||||||
Loss on extinguishment of debt |
215 |
— |
215 |
— |
1 |
214 |
215 |
||||||||||||||||||||
Other income (b) |
(78) |
— |
(78) |
(2) |
(1) |
(75) |
(78) |
||||||||||||||||||||
Interest expense |
364 |
15 |
379 |
57 |
136 |
186 |
379 |
||||||||||||||||||||
Depreciation and amortization |
278 |
2 |
280 |
144 |
121 |
15 |
280 |
||||||||||||||||||||
Corporate expense |
73 |
1 |
74 |
— |
— |
74 |
74 |
||||||||||||||||||||
Other operating costs (c) |
12 |
(1) |
11 |
7 |
2 |
2 |
11 |
||||||||||||||||||||
Property EBITDAR |
517 |
15 |
532 |
292 |
203 |
37 |
532 |
||||||||||||||||||||
Corporate expense |
(73) |
(1) |
(74) |
— |
— |
(74) |
(74) |
||||||||||||||||||||
Stock-based compensation expense (d) |
17 |
1 |
18 |
2 |
3 |
13 |
18 |
||||||||||||||||||||
Other items (e) |
31 |
(1) |
30 |
3 |
2 |
25 |
30 |
||||||||||||||||||||
Adjusted EBITDAR |
$ |
492 |
$ |
14 |
$ |
506 |
$ |
297 |
$ |
208 |
$ |
1 |
$ |
506 |
|||||||||||||
Net revenues |
$ |
1,901 |
$ |
69 |
$ |
1,970 |
$ |
880 |
$ |
928 |
$ |
162 |
$ |
1,970 |
|||||||||||||
Adjusted EBITDAR margin (f) |
25.9% |
20.3% |
25.7% |
33.8% |
22.4% |
0.6% |
25.7% |
CAESARS ENTERTAINMENT CORPORATION |
|||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION – ENTERPRISE-WIDE 2017 DATA |
|||||||||||||||||||||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR |
|||||||||||||||||||||||||||||||
Year Ended December 31, 2017 |
Year Ended December 31, 2017 |
||||||||||||||||||||||||||||||
(Dollars in millions) |
CEC |
CEOC |
Less: |
Enterprise- |
Las Vegas |
Other U.S. |
All Other (g) |
Enterprise- |
|||||||||||||||||||||||
Net income/(loss) attributable to Caesars |
$ |
(368) |
$ |
10,208 |
$ |
6 |
$ |
9,846 |
$ |
(1,781) |
$ |
(3,034) |
$ |
14,661 |
$ |
9,846 |
|||||||||||||||
Net income/(loss) attributable to noncontrolling interests |
(7) |
(13) |
7 |
(13) |
— |
(15) |
2 |
(13) |
|||||||||||||||||||||||
Net income from discontinued operations |
— |
(26) |
— |
(26) |
— |
— |
(26) |
(26) |
|||||||||||||||||||||||
Income tax (benefit)/provision |
(1,995) |
12 |
— |
(1,983) |
— |
1 |
(1,984) |
(1,983) |
|||||||||||||||||||||||
Gain on deconsolidation of subsidiary |
(31) |
— |
— |
(31) |
— |
(31) |
— |
(31) |
|||||||||||||||||||||||
Restructuring and support expenses (a) |
2,028 |
(9,755) |
— |
(7,727) |
2,467 |
3,533 |
(13,727) |
(7,727) |
|||||||||||||||||||||||
Loss on extinguishment of debt |
232 |
— |
(12) |
220 |
4 |
1 |
215 |
220 |
|||||||||||||||||||||||
Other income (b) |
(95) |
(18) |
— |
(113) |
(4) |
(2) |
(107) |
(113) |
|||||||||||||||||||||||
Interest expense |
773 |
186 |
(18) |
941 |
67 |
162 |
712 |
941 |
|||||||||||||||||||||||
Depreciation and amortization |
626 |
267 |
(20) |
873 |
502 |
295 |
76 |
873 |
|||||||||||||||||||||||
Corporate expense |
202 |
80 |
— |
282 |
— |
— |
282 |
282 |
|||||||||||||||||||||||
Other operating costs (c) |
65 |
(16) |
— |
49 |
29 |
9 |
11 |
49 |
|||||||||||||||||||||||
Property EBITDAR |
1,430 |
925 |
(37) |
2,318 |
1,284 |
919 |
115 |
2,318 |
|||||||||||||||||||||||
Corporate expense |
(202) |
(80) |
— |
(282) |
— |
— |
(282) |
(282) |
|||||||||||||||||||||||
Stock-based compensation expense (d) |
43 |
— |
— |
43 |
4 |
3 |
36 |
43 |
|||||||||||||||||||||||
Other items (e) |
90 |
39 |
(2) |
127 |
10 |
4 |
113 |
127 |
|||||||||||||||||||||||
Adjusted EBITDAR |
$ |
1,361 |
$ |
884 |
$ |
(39) |
$ |
2,206 |
$ |
1,298 |
$ |
926 |
$ |
(18) |
$ |
2,206 |
|||||||||||||||
Net revenues |
$ |
4,868 |
$ |
3,480 |
$ |
(181) |
$ |
8,167 |
$ |
3,662 |
$ |
3,883 |
$ |
622 |
$ |
8,167 |
|||||||||||||||
Adjusted EBITDAR margin (f) |
28.0% |
25.4% |
21.5% |
27.0% |
35.4% |
23.8% |
(2.9)% |
27.0% |
____________________ |
|
(a) |
Amounts primarily represent CEC’s costs in connection with the restructuring of CEOC. |
(b) |
Amounts include changes in fair value of the derivative liability related to the conversion option of the CEC Convertible Notes and the disputed claims liability as well as interest and dividend income. |
(c) |
Amounts primarily represent costs incurred in connection with development activities and reorganization activities, and/or recoveries associated with such items, including acquisition and integration costs, contract exit fees including exiting the fully bundled sales system of NV Energy for electric service at our Nevada properties, lease termination costs, gains and losses on asset sales, weather related property closure costs, demolition costs primarily at our Las Vegas properties for renovations, and project opening costs. |
(d) |
Amounts represent stock-based compensation expense related to shares, stock options, restricted stock units, and performance stock units granted to the Company’s employees. |
(e) |
Amounts include other add-backs and deductions to arrive at Adjusted EBITDAR but not separately identified such as professional and consulting services, sign-on and retention bonuses, business optimization expenses for IT transformation, severance and relocation costs, litigation awards and settlements, permit remediation costs, and costs associated with CEOC’s restructuring and related litigation. |
(f) |
Adjusted EBITDAR margin is calculated as adjusted EBITDAR divided by net revenues. |
(g) |
Amounts include eliminating adjustments and other adjustments to reconcile to consolidated CEC and Enterprise-wide adjusted EBITDAR. |
CAESARS ENTERTAINMENT CORPORATION |
||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION |
||||||||||||||||||||||||||||||
RECONCILIATIONS OF ENTERPRISE-WIDE HOLD ADJUSTED REVENUE AND HOLD ADJUSTED EBITDAR |
||||||||||||||||||||||||||||||
Year Ended December 31, 2018 |
Year Ended December 31, 2017 |
|||||||||||||||||||||||||||||
(Dollars in millions) |
Enterprise- |
Unfavorable |
Hold |
Enterprise- |
Unfavorable |
Hold |
$ Change |
% Change |
||||||||||||||||||||||
Net revenues |
$ |
8,391 |
$ |
28 |
$ |
8,419 |
$ |
8,167 |
$ |
37 |
$ |
8,204 |
$ |
215 |
2.6% |
|||||||||||||||
Adjusted EBITDAR |
2,308 |
20 |
2,328 |
2,206 |
30 |
2,236 |
92 |
4.1% |
Source Caesars Entertainment Corporation
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Caesars Entertainment Reports Fourth Quarter and Full Year 2018 Results

Latest News
Gaming Americas Weekly Roundup – September 8-15
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
IGT announced that its much-anticipated Wheel of Fortune Big Money Spin electronic table game (ETG) recently made its world debut at Downtown Grand Casino in Las Vegas, Nev. The vibrant standalone ETG game includes many of the attributes that have propelled the success of the Wheel of Fortune slots franchise for nearly three decades including word puzzles, wheel spins and exciting jackpot rewards. The game is accompanied by an attention-grabbing, 9-plus-feet upright video wheel that stands independent of the ETG terminals and entertains casino guests with the famous “WHEEL-OF-FORTUNE!” chant.
MGM Resorts International has announced that Corey Sanders, Chief Operating Officer, will retire from the company after more than 30 years of dedicated service and leadership. Sanders has agreed to remain COO through Dec. 31, 2025, and to serve as an advisor to the President and CEO through Dec. 31, 2026. The Company intends to name a new COO to serve as Sanders’ successor later this month. Sanders is currently MGM Resorts’ Chief Operating Officer, overseeing the company’s Las Vegas and regional properties as well as multiple corporate departments, including Hospitality, Gaming, Human Resources and Strategic Initiatives. Prior to that, he served as the company’s Chief Financial Officer and Treasurer.
Members of Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria and Big Lagoon Rancheria gathered outside the State Capitol in Sacramento to protest Assembly Bill 831 (AB 831). If passed, the bill would limit economic opportunities available to less wealthy tribes in the state by banning legitimate online social games using sweepstakes promotions. It would also eliminate more than $1 billion of existing economic activity generated by the industry in California, and close off a potential new revenue source for the state via sensible, modern regulation and taxation.
Partnerships
Genius Sports Limited has expanded its long-term partnership with Hard Rock Bet Sportsbook (Hard Rock Bet) to power the top-rated platform with its market-leading official data, trading and marketing solutions, as well as its ground-breaking BetVision product. Genius Sports has worked in partnership with the leading operator since 2021, providing the highest quality official data and pinpoint trading solutions across top tier leagues globally, including the Premier League, Serie A, European Leagues, Liga MX, NFL and more. Hard Rock Bet will be able to provide its customers with Genius Sports’ first-of-its-kind BetVision low latency streaming solution.
Quick Custom Intelligence (QCI), a leading provider of data-driven casino intelligence and player engagement platforms, has announced that Dania Beach Casino is continuing to benefit from its deployment of the QCI Nimble platform. While the property currently focuses on the QCI Host and QCI Marketing modules, it has expressed enthusiasm about the capabilities of the new AGI56 release and its impact on future customer engagement strategies. AGI56 represents the most ambitious release in QCI’s history, with the platform undergoing a full refresh of its technology stack, improved integration of advanced analytics, and the introduction of generative AI-driven tooling through Chatalytics.com. QCI’s platform is currently deployed in more than 350 casinos worldwide.
The post Gaming Americas Weekly Roundup – September 8-15 appeared first on European Gaming Industry News.
Latest News
🚀 Stellar Soft: From Africa’s Betting Shops to the Future of Global iGaming
The iGaming industry is one of the fastest-changing landscapes in the world. New technologies, shifting regulations, and evolving player expectations create both challenges and enormous opportunities. In this environment, only those who dare to innovate, adapt, and partner wisely are able to thrive.
One company that embodies this journey is Stellar Bets — an ambitious software provider that began in Africa and is now preparing to reshape the future of retail betting in Europe. Our story is not just about creating games. It’s about building a complete ecosystem for operators, affiliates, and entrepreneurs — and opening doors for long-term partnerships across continents.
🌍 Humble Beginnings, Bold Vision
When we entered the African market, the industry was already crowded with solutions. Many thought there was little room left for innovation. But we believed otherwise.
From the start, we knew the secret to success wasn’t just about building games — it was about designing ecosystems. Operators needed more than entertainment; they needed reliable tools, sustainable margins, and technology that would support them in real conditions — including low internet speeds, limited hardware, and highly competitive retail environments.
Our first big step was the launch of Stellar Rocket, a crash game that quickly captured the imagination of African players. With stunning visuals, a dynamic multiplier, and an innovative balance between player wins and operator profitability, it became much more than just a game — it became a movement.
Within months, betting shops from Nigeria to Kenya were reporting higher engagement, stronger retention, and more stable revenue. The success of Stellar Rocket proved that innovation could transform even the most traditional retail setups.
📈 Growth Backed by Numbers
Success stories are powerful, but in iGaming the numbers matter most.
- In 2024–2025, Stellar Bets expanded into more than 15 African countries.
- Successfully achieved the ideal balance between player satisfaction and operator profitability with our Next-Gen RTP System.
- Operators reported 30–45% revenue growth after integrating our solutions.
This growth wasn’t accidental. It came from a deep commitment to R&D, continuous improvement, and a philosophy that sees technology as a service to both operators and players.
And here’s the key: we didn’t just help operators earn more — we also made sure players enjoyed fairer, more exciting experiences. In a market where achieving both can be challenging, this balance clearly sets Stellar Bets apart.
🎮 Beyond Games: Building an Ecosystem
The heart of Stellar Bets has always been innovation, but we quickly realized that individual games are not enough. Operators need comprehensive solutions to scale their business.
That’s why we built an ecosystem:
- Stellar Box — a plug-and-play solution that allows operators to deploy instantly.
- Stellar Kiosk — an all-in-one machine with built-in computer and receipt printer.
- Cloud-based admin tools — for user management, analytics, and cashier control.
- Proprietary hardware — designed for stable operation even in areas with low bandwidth.
- AI-powered RTP engine — balancing fairness for players and profits for operators.
And perhaps the most groundbreaking innovation of all — HomePlay.
📱 HomePlay: Bridging Offline and Online
Retail betting shops are still the heartbeat of many markets. But until recently, their biggest limitation was the number of physical terminals. Only so many customers could play at the same time.
With HomePlay, we changed that forever.
This breakthrough technology transforms every smartphone inside a betting shop into a personal gaming station. Customers join live Stellar Rocket sessions using their own devices, while the cashier desk continues to handle all deposits and withdrawals.
✅ No waiting lines.
✅ No need for extra hardware.
✅ Every customer becomes an active participant.
✅ Revenue per square meter grows exponentially.
In essence, HomePlay gave new life to retail betting, transforming it from a simple place to play into a vibrant community where thousands of players share emotions and experiences — while providing operators with a scalable, compliant, and seamlessly integrated tool.
For many partners, this feature alone was a game-changer — and it’s one of the clearest examples of how Stellar Bets delivers innovation designed for real-world business impact.
💡 The Secret Behind Our Success
One question we often get is: how can a startup compete with legacy companies in the iGaming space?
The answer is simple — being a startup is our biggest advantage.
🔹 Agility over bureaucracy — We test, pivot, and bring innovations to market quickly, while larger companies get stuck in long decision-making cycles.
🔹 Innovation in our DNA — We don’t just rely on proven models. We experiment, take risks, and introduce features that others are too slow to try.
🔹 Closer to the player — Our teams listen, analyze, and adapt in real time, creating products that reflect what players actually want.
🔹 Growth mindset — Every market matters. Every operator matters. Every affiliate matters. For us, every partnership is a chance to grow together.
🔹 Constant rapid development — We continuously expand our product portfolio, scale operations, and evolve to meet the needs of new markets.
But above all, we recognize the importance of technological excellence — investing in R&D, proprietary hardware, and resilient software that deliver security, stability, and reliability for both operators and players. It’s this mindset that has powered Stellar Bets from a small startup into one of the most recognized software providers in Africa.
🤝 Reshaping the Future of iGaming Together
After building a strong foundation across Africa, we are now preparing for the next chapter — entering the European market. We see great potential in several EU countries where many operators still depend on outdated systems and solutions.
Our goal is not just to expand, but to bring real value: technology that has proven itself in highly competitive retail environments, tools that balance innovation with compliance, and products that boost both player satisfaction and operator revenue.
For us, Europe is an opportunity to share what we’ve learned, adapt to new contexts, and grow together with forward-looking partners who are ready for benefit from:
✅ A personal account manager.
✅ 24/7 technical support.
✅ Access to a constantly evolving ecosystem.
We know our success depends on the success of our partners. That’s why we treat every collaboration as a joint venture — where both sides grow together.
And here’s our invitation: if you are looking for an iGaming software partner who delivers not just games, but full-scale solutions designed for growth — Stellar Bets is ready to work with you. Let’s reshape the future of iGaming — together.
📩 Contact us: [email protected]
🌐 Visit: stellar-bets.com
💼 LinkedIn: Stellar Bets
The post 🚀 Stellar Soft: From Africa’s Betting Shops to the Future of Global iGaming appeared first on European Gaming Industry News.
Latest News
The Chiliz Group acquires OG Esports, reuniting with original co-founders to launch new era
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Chiliz Group acquires 51% of OG Esports, investing to grow the team, expand operations, and strengthen fan and player engagement.
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Xavier Oswald, a former co-founder and shareholder of OG, becomes CEO, while OG co-founders Johan “n0tail” Sundstein and Sébastien “Ceb” Debs launch a new strategic project consolidating the team’s competitive foundation.
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Socios.com becomes the exclusive platform for $OG Fan Tokens, $OG will act as the showcase for blockchain-based utility.
The Chiliz Group, the world’s leading blockchain provider for the sports and entertainment industry and operator of Socios.com, today announced it has acquired a 51% controlling stake in OG Esports, one of the most iconic and innovative names in global esports.
Founded in 2015 by legendary Dota 2 players Johan “n0tail” Sundstein and Sébastien “Ceb” Debs, OG is the first team in history to win back-to-back titles at The International. Since then, OG has expanded into Counter-Strike, Honor of Kings and Mobile Legends: Bang Bang, building one of the most successful and culturally significant organisations in esports.
OG has a track record of delivering a fan-driven culture through innovation and launched the $OG Fan Token in 2020. The $OG Fan Token recently became the first esports Fan Token to surpass a $100 million market capitalization, driven by surging global demand for digital fan assets. Having delivered exclusive voting rights, VIP experiences, merchandise, and direct access to the team for fans worldwide, $OG represents a thriving $100m+ digital fan economy.
As part of the acquisition, Xavier Oswald will take on the role of CEO of OG, guiding the organisation into its next chapter, while co-founders Johan “n0tail” Sundstein and Sébastien “Ceb” Debs will lead a new strategic project consolidating the team’s competitive foundation, driving innovation at the intersection of esports and Web3.
At the same time, Socios.com will become the exclusive wallet and engagement platform for $OG Fan Tokens, establishing $OG as the flagship example of the new fan economy. The token will now showcase how fan assets can evolve – serving as the blockchain layer for tickets, merchandise, in-stadium perks, and digital content, while also integrating real-world assets and club revenues through mechanisms like buybacks to deliver deeper influence and tangible value to supporters.
Through The Chiliz Group’s global network of more than 80 leading sports properties, OG will now be able to expand into new countries and markets, building a larger international footprint and new commercial opportunities. Backed by the financial strength of a global group, OG will become more resilient and sustainable, ensuring long-term stability while focusing on what matters most: players, fans, and innovation.
More details about the acquisition will be released in the coming weeks.
“OG has always been about community and innovation, and since 2020 it has demonstrated that Fan Tokens can create genuine economic value and meaningful engagement,” said Alex Dreyfus, CEO and Founder of Chiliz. “With a $100 million fan token economy already established, OG represents the perfect case study for what’s truly possible when we place Fan Tokens at the centre of the fan economy. This acquisition allows us to showcase the next evolution – Fan Tokens 2.0.”
“This marks the start of a bold new era for OG,” said Xavier Oswald, incoming CEO of OG. “With Chiliz as our majority partner, we can scale our teams, grow our global community, and unlock a new dimension of engagement through the $OG Fan Token. We’ve always believed that fans should be at the centre of everything we do, and now we have the tools and the backing to make that vision a reality.”
“With Chiliz, we share a common vision based on strong values: passion, transparency, and the power of communities.” said Johan “N0tail” Sundstein, co-founder and historic figure of OG Esports. “From winning back-to-back Internationals to competing against OpenAI Five in a world-first showcase of human-AI collaboration, OG has always been about pushing boundaries. This alliance will allow us to stay true to our identity while continuing to grow.”
“This agreement marks the beginning of a new competitive cycle,’ added Sébastien “Ceb” Debs, two-time world champion with OG. “We want to once again become a major force on the international stage and inspire a new generation of players and fans. With the support of Chiliz, we now have the means to build an ambitious and sustainable project.”
The post The Chiliz Group acquires OG Esports, reuniting with original co-founders to launch new era appeared first on European Gaming Industry News.
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