LAS VEGAS, Nev. – Caesars Entertainment Corp. on Monday reported a loss of $791 million in its third quarter largely due to costs associated with the restructuring of its bankrupt subsidiary.
The company no longer includes its operating subsidiary in its results after the unit filed for bankruptcy protection earlier this year which makes it difficult to compare year-over-year financials.
But Caesars has promised $966 million to the holders of first-lien debt in the subsidiary Caesars Entertainment Operating Co. as part of its restructuring plan, leading to $935 million worth of costs in the third quarter.
Overall revenue for the casino company was up 12.4 per cent compared to a year ago, not counting its bankrupt subsidiary, to $1.14 billion, and the company earned $139 million from operations.
It was the first full quarter for the company’s new Horseshoe Baltimore casino and a finished remodel at the Linq casino-hotel on the Las Vegas Strip.
The company said it cut marketing costs and revived a plan to make processes like laundry and housekeeping more efficient.
Caesars also announced plans to remodel more of its Las Vegas Strip rooms and is testing what might draw younger would-be gamblers to its casino floors.
On the heels of revealing a $75 million upgrade to the original hotel tower at Caesars Palace, Caesars officials said Monday during a conference call that they plan to renovate 183 rooms at Planet Hollywood, all of the 672 rooms at Harrah’s and 148 rooms at its Paris Las Vegas casino-hotel by the end of the fourth quarter and early next year. The company didn’t mention any costs associated with the improvements.
“The customers that are coming to Las Vegas are absolutely willing to spend the dollars per hotel night in a renovated room,” said Caesars Chief Financial Officer Eric Hession.
The company recorded higher room rates in the quarter largely due to resort fees, a flat amount added to nightly hotel stays, which increased the average daily rate 13.9 per cent at six of the company’s casino-hotels in Las Vegas, Atlantic City and Laughlin and the Octavius Tower at Caesars Palace.
On a per-share basis, the Las Vegas-based company said it had a loss of $5.44. Losses, adjusted for restructuring costs, were 30 cents per share.
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