NASDAQ$CZR

Caesars Entertainment Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Caesars Entertainment, Inc. reported a net loss due to property closures and reduced operations related to the COVID-19 pandemic, but merger completed in July positions company for future recovery.

Caesars Entertainment, Inc. reported second quarter results, which were significantly impacted by the COVID-19 pandemic, with the majority of properties remaining closed during April and May. Net revenue for legacy Eldorado Resorts properties was $126.5 million, a decrease of 80.1% compared to the prior-year period. The company reported a net loss of $100.0 million, compared to net income of $18.9 million in the prior-year period. The merger between Eldorado Resorts and Caesars Entertainment Corporation was completed on July 20, 2020.

  • Net revenue for legacy Eldorado Resorts properties decreased by 80.1% on a GAAP basis.
  • Net loss of $100.0 million compared to net income of $18.9 million for the comparable prior-year period.
  • Same-store Adjusted EBITDA for legacy Eldorado Resorts was negative $10.4 million.
  • Eldorado Resorts and Caesars Entertainment Corporation completed their merger on July 20, 2020.

Headline financials

Total Revenue

$126M

Previous: $637M-80.1%
EPS (adj)

-$1.25

Previous: -$0.39-220.5%
Adjusted EBITDA

-$10.4M

Previous: $165M-106.3%
Capital Expenditures

-$41M

Previous: -$97.1M+57.8%
Free Cash Flow

-$141M

Previous: -$78.2M-80.4%
Net Income

-$100M

Previous: $18.9M-628.1%
Operating Income

-$78.3M

Previous: $103M-176.4%
Gross Profit

-$1.18M

Previous: -$10.7M+89.0%
Cash & Equivalents

$950M

Previous: $183M+419.0%
Total Assets

$6.15B

Previous: $6.08B+1.1%

Revenue & EPS history

Caesars · Revenue · Quarterly

$126M

Q2 2020-80.1%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Caesars · $2.99B total across 5 segments · Q3 2023

  • Regional
    $1.57B+2.3%
  • Las Vegas
    $1.12B+4.0%
  • Caesars Digital
    $215M+1.4%
  • Managed & Branded
    $98M+40.0%
  • Corporate & Other
    -$4M-100.0%

Forward guidance

The report does not contain specific forward guidance. However, the CEO expressed optimism regarding an eventual recovery of travel and tourism in the U.S. and especially Las Vegas.

Tailwinds

  • All of the combined new Caesars Entertainment, Inc. regional properties are now reopened.
  • The company is encouraged by operating trends.
  • Operating teams are fully engaged with integrating the two companies and executing on synergy plans.
  • The company's priority remains the safety and security of Team Members and Guests.
  • The company remains optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially Las Vegas.

Headwinds

  • Second quarter operating trends were negatively impacted as the majority of properties remained closed during April and May 2020.
  • COVID-19 operating plans are in place for reopened properties.
  • The company faces risks related to the combination of the Company and Caesars Entertainment Corporation (CEC) and the integration of their respective businesses and assets.
  • Potential adverse reactions or changes to business or employee relationships could occur.
  • There is a possibility that the anticipated benefits of the merger, including cost savings and expected synergies, are not realized when expected or at all.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+5.5%

Avg return

30 days after

48%

22 / 46 earnings

Positive

+13.0%

Q4 2025

Best reaction

-15.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+0.3%+6.3%
Q4 2025+13.0%+6.7%+41.2%
Q3 2025-15.4%-7.4%+5.3%
Q1 2025-3.3%-1.3%-4.0%
Q4 2024-0.9%-9.8%-26.4%
Q3 2024-8.7%-13.9%-16.0%
Q2 2024+9.4%-2.4%+1.8%
Q1 2024-3.2%-6.0%-15.2%
Q4 2023-0.6%-2.0%-2.1%
Q3 2023-1.5%+10.8%+11.5%
Q2 2023-6.3%-6.0%-6.4%
Q1 2023-5.4%-3.9%-10.4%
Q4 2022+2.3%-5.2%-20.3%
Q3 2022+0.8%-2.5%+18.5%
Q2 2022+7.0%+3.5%-7.7%
Q1 2022-2.9%-12.3%-24.1%
Q4 2021-0.8%+6.8%-0.4%
Q3 2021-1.2%-5.0%-19.7%
Q2 2021-1.7%+4.6%+19.7%
Q1 2021+6.3%+9.1%+13.1%
Q4 2020+4.0%+3.5%-2.5%
Q3 2020+9.0%+15.5%+41.5%
Q2 2020+4.3%+6.6%+40.2%
Q1 2020+2.7%+10.1%+89.0%
Q4 2019-4.2%-18.3%-72.8%
Q3 2019+0.3%+6.9%+10.8%
Q2 2019-1.9%-6.4%-11.8%
Q1 2019-2.2%-2.0%-0.4%
Q4 2018-5.9%+0.0%+4.7%
Q3 2018+10.9%+2.1%+20.5%
Q2 2018-14.2%-0.7%+12.1%
Q1 2018+0.0%+4.6%+12.7%
Q4 2017+2.0%+8.2%+0.1%
Q3 2017+0.0%+11.3%+19.1%
Q2 2017+1.2%-3.2%+12.4%
Q1 2017+1.3%+4.4%+8.9%
Q4 2016+4.5%+1.8%+14.5%
Q3 2016+2.2%+16.7%+53.7%
Q2 2016-1.0%-4.0%-1.9%
Q1 2016+0.3%
Q4 2015+0.3%
Q3 2015-10.4%
Q2 2015+8.5%
Q1 2015+6.3%
Q4 2014-0.2%
Q3 2014-7.9%
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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