Casino revenues for Casesar’s Entertainment have declined in the second quarter of this year, according to figures that have been released by the company.
Total casino revenues totalled $116.8 million in the second quarter, which represented a decrease of 7.5 per cent year on year. However, the decrease was largely offset by increases in non-gaming revenues along with lower promotional allowances, which helped result in a total net revenue decline of 0.3 per cent year on year.
The figures also stated that Caesars Entertainment bought back approximately $275 million face value of debt in the second quarter and currently maintains $1.9 billion in liquidity.
President and CEO of Caesars Entertainment Gary Loveman said that the company was not overly bothered by the less than stellar second quarter results. Mr Loveman also believed that the company would fare much better in future quarters due to less testing conditions that should arise for the company.
“While challenging conditions in the gaming industry impacted our gaming revenues during the second quarter, we are beginning to observe positive underlying trends resulting directly from the investments we’ve made to enhance our hospitality footprint, particularly in Las Vegas,” he said. “Our performance also reflects our focus on managing operating expenses without sacrificing service.”
“We are excited about our prospects in 2014 and beyond, particularly in light of the improving economic conditions and consumer sentiment, favorable underlying business trends and projects that are scheduled to come online.”
The company is known in the poker world as the owner of the World Series Of Poker (WSOP), which was recently held in Las Vegas. The success of this year’s WSOP may help its total net revenue in the third quarter of 2013, but will likely not be enough to make a huge difference to the company’s total casino revenue.
Caesar’s Entertainment has also previously outlined its intention to release a WSOP-branded real money online poker service in Nevada, capitalising on the recently established online poker industry there. While such a service has not yet been released, the company is still adamant that it will launch a real money service in the future.
That would also gain more revenue for the company as it will certainly attract players in an industry where Ultimate Poker is currently the only player. While it would attract some revenue, Nevada’s small size will mean the future service will also not attract enough revenue to make a huge difference to Caesars Entertainment bottom line in the future.