According to the CEO of Caesars Entertainment, Tom Reeg, customers attending the Formula 1 race and Super Bowl will be high-end and unlike in the year gone by. The Formula 1 race is slated for November 2023, whereas the Super Bowl will be held in February 2024. In his opinion targeting high-end customers will help in increasing revenues for the casino operators of Las Vegas. There are those who disagree with this line of thought.
In Reeg’s viewpoint, Super Bowl 2024 will turn out to be a massive crowd-puller, and the costlier seats will help enormously. As per the company’s report, the overall earnings in Las Vegas in the second quarter declined by 1.2%, and the net income down by 16%. The adjusted EBITDA too fell by 6.4%. Yet, according to him, there was no real adverse impact overall.
Reeg attributed the lowering of revenue to the comparisons being made with the same quarter in the previous year. The future scenario, however, seems more lucrative as July made good money. He has great expectations for the remaining 3rd quarter. The 4th quarter will witness Formula 1, along with the 1st quarter of 2024 bringing in the Super Bowl. There is also the added revenue from hotel stays for guests.
According to the President and COO of Caesars Entertainment, Anthony Carano, the company was kept afloat due to its digital arm, which brought in $216 million. He expects the operational activities will continue to be effective, with the Las Vegas side churning out the second-best second-quarter adjusted EBITDA amounting to $512 million. The local portfolio came up with $508 million in adjusted EBITDA. The digital arm was responsible for adjusted EBITDA to the tune of $11 million. In his opinion, the demand in the second quarter was strong. He attributed better revenue to the convention business in 2023.
Reeg, however, on his part, feels that the third quarter of 2023 will turn out to be more profitable. He is confident that Caesars will overtake the revenue figures attached to the same period in the year gone by.