NASDAQ$CZR

Caesars Entertainment Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Caesars Entertainment, Inc. reported mixed results for Q3 2020, with revenue increase on a GAAP basis but a net loss, impacted by the merger with Eldorado Resorts and COVID-19.

Caesars Entertainment, Inc. reported net revenues of $1.4 billion and a net loss of $926 million. The company completed its merger with Former Caesars on July 20, 2020, and announced an offer to acquire William Hill plc. Operating results continued to improve sequentially, with regional markets outperforming destination markets.

  • Net revenues increased by 52% on a GAAP basis but decreased by 34% on a same-store basis compared to the prior year.
  • Net loss was $926 million, compared to net income of $37 million in the prior year.
  • Same-store Adjusted EBITDA was $463 million, compared to $810 million in the prior year.
  • Caesars announced an all-cash offer to acquire William Hill plc and raised $1.9 billion of new equity.

Headline financials

Total Revenue

$1.38B

Previous: $663M+107.6%
EPS (adj)

-$4.95

Previous: -$0.53-834.0%
Adjusted EBITDA

$463M

No prior period
Capital Expenditures

-$94M

Previous: -$135M+30.4%
Free Cash Flow

-$1.02B

Previous: -$98M-941.2%
Net Income

-$926M

Previous: $37.1M-2599.0%
Operating Income

-$152M

Previous: $125M-221.7%
Gross Profit

-$68M

Previous: -$12.1M-462.4%
Cash & Equivalents

$1.04B

Previous: $209M+396.6%
Total Assets

$36.2B

Previous: $6.08B+495.9%

Revenue & EPS history

Caesars · Revenue · Quarterly

$1.38B

Q3 2020+107.6%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Caesars · $1.38B total across 4 segments · Q3 2020

  • Regional
    $1B
  • Las Vegas
    $304M
  • Managed & Branded
    $69M
  • Corporate & Other
    $4M

Forward guidance

Caesars Entertainment is optimistic about the eventual recovery of travel and tourism in the U.S., especially in Las Vegas. The company continues to have a strong liquidity position.

Tailwinds

  • Sequential improvement in operating results.
  • Outperformance of regional markets compared to destination markets.
  • Successful raising of $1.9 billion of new equity.
  • Strong liquidity position with revolvers undrawn and significant unrestricted cash.
  • Agreement to sell Tropicana Evansville for $480 million.

Headwinds

  • Impact of COVID-19 on the company's business, financial results, and liquidity.
  • Potential adverse reactions to the merger with CEC.
  • Possibility that the proposed acquisition of William Hill is not consummated.
  • Risks associated with increased leverage and rental expense.
  • Competitive responses to the Merger and the proposed acquisition of William Hill.

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 Q3 2020

Historical avgQ3 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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