Caesars Entertainment owns and operates 56 casinos. However, only one has remained closed till now after the COVID19 pandemic shut down the businesses. But Caesars announced that they are gearing up to open Rio All-suite Hotel and Casino at Las Vegas before the end of the year. The announcement was made during the quarterly earnings financial health meeting.
The operator announced a significant improvement in the EBITDA in the third quarter as compared to the second. In Q2, the company reported a $10mn EBITDA. The estimated number for Q3 is around $50mn. This has ensured that the company starts the operation of the entire portfolio including the Las Vegas Rio casino.
The company is actually looking at quite impressive growth unlike many. MGM Resorts and Wynn Resorts recently announced that in Las Vegas they are going to shut down the operations for few days for slower traffic. The lesser traffic is predominantly because of the continuous threat of COVID19 in Las Vegas.
However, the CEO of Caesars, Tom Reeg confirmed that there is no such plan for them. The business is strong and growing with each passing day.
The hotel occupancy for Caesars is quite astonishing too. The company announced 50% occupancy during weeks and 90% during weekends. However, this figure is based on the already reduced capacity ordered by Governor Steve Sisolak. However, Reeg is hopeful that the changes would be made pretty soon maybe early next year.
The net revenue for Q3 is reported at $1.4bn and indicates a 52% increase. However, after all, expenses and deductions, the company reported a $926mn loss. For the same period last year, Caesars reported a $37mn net profit.
Commenting on the results, Reeg said that 55 properties have already reopened. However, the regional markets are outperforming the destination markets as of now. The operational results are sequentially improving as well. He is hopeful that as the travel resumes, Caesars would get the much-required boost.