Caesars Entertainment hit by ‘disappointing’ fourth quarter

Land-based gaming operator Caesars Entertainment said that despite a “disappointing” performance in the fourth quarter, it experienced a year of “considerable progress and activity” in the 12 months through to December 31, 2013.

Preliminary results for the period show that consolidated net revenue is expected to be between $2.05 billion (€1.5 billion) and $2.11 billion.

The company also expects adjusted EBITDA for the fourth quarter to total between $395 million and $315 million, an amount that will definitely be lower than the $420.1 million recorded in the corresponding period last year.

Caesars also said that the net loss is likely to be significantly higher than it was in the fourth quarter of 2012.

The company’s preliminary results show an expected net loss of between $1.7 billion and $1.8 billion, compared to a net loss of $480.3 million in the same period last year.

Gary Loveman, chairman and chief executive officer of Caesars Entertainment, said that despite a poor performance in the fourth quarter, 2013 was a successful year for the company.

“It was a year of considerable progress and activity for Caesars,” he said. “We significantly invested in growth projects and undertook a number of actions designed to enhance the company’s capital structure and create value.

“For the fourth quarter, performance in some of our regional areas, particularly Atlantic City, was disappointing. We are, however, encouraged by volume and visitation trends in Las Vegas.

“We are excited about our prospects there fueled by organic growth as well as our hospitality investments.”

Elsewhere, Caesars Entertainment has entered into a definitive agreement to sell a number of its assets to Caesars Growth Partners in a deal worth $2.2 billion.

The deal will include the sale of Bally’s Las Vegas, The Cromwell, The Quad and Harrah’s New Orleans.

The transaction is expected to be completed in the second quarter of 2014, subject to various closing conditions.

“Today’s asset sales mark an important step in our ongoing efforts to repair CEOC’s balance sheet,” Loveman said.

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