The Short Take:
- Casino revenue at CZR was dominated by its U.S. properties outside of Las Vegas. These casinos generated $789 million in casino revenue versus $249 million for the Vegas casinos
- Food & Beverage revenue was the highest for CZR’s Las Vegas locations, with $244 million in sales during Q3
- The $271 million in Rooms revenue at the company’s Las Vegas hotels beat out the Other U.S. hotels outside of the city which saw a combined $124 million in revenue
Caesars Entertainment (CZR) reported that its third quarter 2018 total net revenue was $2.185 billion. In an earlier article, we discussed the breakdown of total revenue by operating sector, such as Casinos, Food & Beverage and Rooms. Today we’ll look at the geographic breakdown of these operating sectors.
CZR casinos generated $1.102 billion in revenue during the third quarter which accounted for 50.4% of the company’s total revenue. On a regional level, CZR breaks down the Casino revenue into three geographic areas: Las Vegas, Other U.S. which includes U.S. casinos outside of Las Vegas, and All Other.
To the casual observer of CZR it may be surprising to learn that the Las Vegas casino region does not bring in the most Casino revenue for the company. That distinction belongs to the Other U.S. group with its casinos spread from Atlantic City on the East Coast all the way to California. This Other U.S. group saw Casino revenue of $789 million for the quarter which represents 71.6% of the company-wide Casino revenue.
The Casino revenue at the CZR Las Vegas properties brought in a fraction of the Other U.S. locations. The Las Vegas Casino revenue of $249 million contributed 22.6% of the company’s total Casino revenue. The All Other group saw Casino revenue of $64 million, or 5.8% of the total revenue.
Food & Beverage Revenue
The second largest revenue segment at CZR is Food & Beverage (F&B) with $408 million in revenue during the quarter, or 18.7% of the company’s total revenue.
In this segment, CZR’s Las Vegas properties dominated, with $244 million in revenue. This equates to 59.8% of the company’s total F&B revenue. The Other U.S. properties had F&B revenue of $158 million, or 38.7% of revenue for the category. The All Other group saw $6 million in sales of food and drinks. This was just 1.5% of the company’s F&B revenue.
Just behind the F&B sector in terms of revenue is the Rooms sector, with $395 million in the third quarter which accounts for 18.1% of CZR total revenue.
Las Vegas also dominates the Rooms revenue. Its $271 million in third quarter revenue was 68.6% of the total Rooms revenue for the entire company. The Other U.S. region pulled in $124 million in the Rooms sector, or 31.4% of the sector revenue. The All Other group does not have Rooms revenue.
This Casino revenue breakdown shows that Las Vegas offers its visitors so much more than gambling. Great hotels, food, bars and clubs make up a large portion of the revenue for the gaming companies that operate in the city, including CZR. We also see that revenue at properties outside of Las Vegas is dominated by the casinos as opposed to hotels, restaurants and bars since many of these locations are visited by locals for a quick gambling day-trip.
Stay tuned for more coverage of the CZR third quarter report, with more great stats and analysis.