Caesars Entertainment reported lower-than-expected first-quarter results on Tuesday, despite record levels of occupancy due to the Super Bowl and Chinese New Year. Despite this, its Las Vegas segment saw low table hold, leading to a decrease in overall performance. As a result, shares of the company declined by about 3% in extended trading.
Despite an influx of visitors during the Super Bowl, Caesars reported declines in its non-gaming segments such as dining and retail, as well as its gaming operations. However, CEO Tom Reeg noted that Caesars Digital experienced strong revenue growth, despite lower-than-expected results in online sports betting.
Caesars has seen a shift in consumer spending towards services. However, profit from U.S. properties, including those in Las Vegas, has decreased from previous highs due to increased expenses on food and beverages as well as hotel operations. Unfavorable winter weather in the first two months of the year also impacted profitability in the regional segment. Caesars reported a loss of $0.73 per share, significantly higher than analysts’ expectations of a per share loss of $0.07. Revenue for the quarter was $2.74 billion, falling short of the expected $2.84 billion.
