Caesars Digital Achieves EBITDA Record In Q2 2024

The company reported adjusted EBITDA of $40 million, up from $11M in same period last year

Last updated: July 31, 2024

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Gaming and hospitality company Caesars Entertainment has published its financial results for Q2 2024, the period ending June 30, 2024.

The press release revealed that the company’s online division, Caesars Digital, set a new second-quarter adjusted EBITDA record. The segment reported adjusted EBITDA of $40 million, up from $11 million in the same period last year. Caesars Digital also reported $276 million in net revenue during Q2, marking an increase of around 28% year-on-year.

“Our Caesars Digital segment posted a new second-quarter Adjusted EBITDA record, driven by strong revenue growth and solid flow through,” commented Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc.

Overall, Caesars Entertainment generated $2.8 billion in revenue during the second quarter, down slightly from $2.9 billion reported in Q2 2023. At the same time, the company faced a net loss of $122 million, compared to $920 million in net income last year. However, Caesars said that the decrease was primarily due to a $940 million tax adjustment.

“We remain optimistic for the balance of 2024 driven by strong operating trends in our Las Vegas and Caesars Digital segments and the expected openings of the permanent facility in Danville coupled with our $430 million capital investment in our newly rebranded Caesars New Orleans property,” Reeg said.

Generally positive reaction from analyst land to $CZR's Q2 performance on the digital side.

Digital EBITDA came in at $40m ahead of consensus of $25m, and the company reaffirmed its 2025 guidance for digital EBITDA run-rate of $500mm (!) in 2025.

Quick ??
— Chris Grove (@OPReport) July 31, 2024

5/ Joseph Greff, JPM: "Digital was a bright spot, with iGaming GGR up 46% y/y, OSB GGR up 13% y/y, segment net revenue growth of 28%, with OSB parlay mix reportedly moving higher by 380 bps y/y, and 15% margins; we think the segment is on pace for ~$200m in EBITDA this year,…
— Chris Grove (@OPReport) July 31, 2024

The New Danville Casino Is Coming

Following a slight delay, Caesars Virginia, located in Danville, is expected to open its doors later this year. The casino received approval from Danville voters in November 2020 and was initially scheduled to open in 2023, but the opening was delayed. In the meantime, Caesars opened a temporary casino, which has drawn in an average of 100,000 guests per month.

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About Caesars Entertainment

Started in Nevada in 1937, Caesars Entertainment, Inc. has grown into the largest casino-entertainment company in the U.S. The company operates more than 50 properties across the US under several brand names, including Caesars®, Harrah’s®, Horseshoe®, and Eldorado®.

Caesars Digital is a subsidiary of Caesars Entertainment, focused on the company’s presence in the online gaming market. The Caesars Palace Online Casino is currently available on mobile and desktop devices in four of the seven iGaming states, including New Jersey, Michigan, Pennsylvania, and West Virginia. Recently, Caesars Digital partnered with High 5 Games and Konami to launch its games in West Virginia and New Jersey, in addition to Michigan and Pennsylvania, where they are already available.