Overall Revenue at CZR Increased in Q3, but Las Vegas Revenue Saw a Drop

The Short Take:

  • Company-wide net revenue for Q3 2018 came in at $2.185 billion, a 2.9% year-over-year increase
  • Revenue at CZR owned Las Vegas resorts dropped 2.4% YoY while revenue at other U.S. properties increased by 8.4%
  • The largest revenue segment at CZR is Casino, making up 50.4% of total net revenue, followed closely by Food & Beverage and Rooms with 18.7% and 18.1% of total revenue, respectively

When Caesars Entertainment (CZR) issued its third quarter 2018 financial report yesterday it reported that total net revenues increased 2.9% from the same quarter last year, coming in at $2.185 billion.  Today, we’ll look at two different breakdowns of the company’s revenue: by region and by segment.

The first way CZR breaks down net revenue is by geographic region.  The three regions CZR uses are Las Vegas, Other U.S. and All Other.  For the third quarter, the region with the highest revenue was “Other U.S” which makes up all of the domestic casinos outside of Las Vegas. This region had revenue of $1.125 billion.  The Other U.S. revenue contributed 51.5% of the company’s total revenue. Year-over-year, this segment posted a solid 8.4% growth rate compared to Q3 2017.

The Las Vegas region’s revenue was about $200 million less than the Other U.S. region’s.  Las Vegas operations produced $910 million in revenue, or 41.6% of total revenue.  The company’s Las Vegas properties saw negative YoY growth, dropping 2.4% compared to last year.

The smallest regional revenue segment is identified generically as All Other and totaled $150 million for the quarter, or 6.9% of total revenue.  The All Other region’s revenue fell 2.0% year-over-year.

Here’s a look at the revenue breakdown by region:

 

The second way CZR breaks down revenue is by segment.  The three main segments are Casino, Food & Beverage and Rooms.  As would be expected for a gaming company, the largest revenue segment is Casino.  The $1.102 billion in Q3 revenue represented 50.4% of total revenue.

Food & Beverage is the second largest revenue segment with $408 million.  This segment contributed 18.7% to total company revenue. The Rooms segment was just behind Food & Beverage closing the quarter with revenue of $395 million, or 18.1% of total revenue.

CZR has three other revenue segments outside of the three core segments discussed above.  The Other Revenue segment posted revenue of $213 million for the quarter, or 9.7% of total revenue.  Reimbursed Management Costs and Management Fee are the final two segments, with $51 million and $16 million in revenue, respectively.

Here’s a look at the revenue segments for CZR for Q3 2018:

 

The CZR earnings day press release is typically bare on other interesting metric data, and the Q3 release was no different.  CZR will be issuing its full 10-Q soon and once that is filed we’ll dig into all of the nuggets that we find.  So, stay tuned and check back here often!

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