CZR - Earnings call transcript Q2 2024 | Caesars Entertainment, Inc.

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Operator

Hello. Thank you for standing by. Welcome to Caesars Entertainment Inc. 2024 Second Quarter Earnings Call. [Operator Instructions] After the speaker's presentation there will be a question-and-answer session. Instructions]. [Operator like President call and of now Agnew, to Investor turn Vice Senior Corporate to would over the Brian Relations. I Finance, Treasury may you begin. Sir,

Brian Agnew

is Thank a discuss period XXXX. website our to on quarter Relations XXXX for good available Welcome you, the afternoon, ended our announcing second ] A we our section This the the results issued to to XX, on press release Investor copy call. afternoon our call conference earnings. [ Towanda, press June release everyone the of of and investor.caesars.com. financial at

joining are Yunker, & Relations. and [indiscernible] Executive and Chief on Hession, Chief usual, As our Operating Online Gaming Chief me Eric the Sports our Tom Reeg, President Caesars Investor Carano, Anthony call in Goal our Bret Officer; Officer; Officer; President,

reconciliation and Anthony, under the certain I measures remind the certain non-GAAP defined the that financial to today's of during turn non-GAAP the Before GAAP may true. may Also G. turn call located a harbor will conference on between the SEC over safe Please differences our financial call, over forward-looking as Anthony. Investor Regulation may federal statements you during With the discuss call make financial for would to company we laws, may call, website. or these measure press today's that not out our each Relations statements come visit like by and measure. releases comparable of I way, to securities I

Anthony Carano

to on call. and afternoon Brian, good everyone you, Thank the

adjusted billion, flat EBITDA net consolidated revenues $X versus delivered $X.X both of and quarter second total billion Our prior year. of

quarter room and our year forward Vegas year-over-year Las for increases XXX construction by regional down competitive the were on based down our from in trends, driven reflecting remain continued room to $XXX in a only strong for comparison coupled Results our occupancy hotel We declines, discipline. quarter and in revenue segment the year-over-year. group markets, were basis margins performance certain X% Danville properties. Despite pressures labor. EBITDAR XX by a expectations points, only principally combination in Reno due in in in EBITDAR were trends regional basis adjusted continued our and growth segment and disruption, on $XXX despite record segment, from was event [ renovations beat result are EBITDA verse our $X.X ADRs. Tower record ] and segment forward as Paris also performance prior in year-over-year ] has results Vegas strengthened. Las of mix convention a occupied gains revenue EBITDAR and and of delivered investment and by our net food night pace Our Caesars the revenue occupancy CM driven [ cash hotel beverage. Recent a at higher ADRs These above of million same-store X.X%. were Palace [ by returns driving strong rebranded on second year-over-year at Las New Orleans the year, adjusted points of an Call segment in inventory for Nebraska at offset margins room recent cost increase cash and by Vegas newly Las plan in million, for encouraged Group XX.X% operating difficult billion down ] last and our XXXX Tower of strong delivered driven large Strip. In decrease with Vegas pricing a

in the strong to opening New and October December. ] celebrated newly forward the [ opening we in in permanent Harris, which is rebranded Danville to XX, the start. in Orleans of Nebraska's on facility Caesars off of the a During May first of completion the look We the state, the our property quarter, company's permanent facility property

looking drive ahead. will Our to regional segment an coming strong for is capital investment which end, cycle the elevated returns

for deliver Our a and of to of I team guest continued thank members their members strong as continue all contributions team want our exceptional to work to dedication. their result hard our turn results, some which excellence. the are quarter a detail product to now I the will Caesars With results on segment. for Eric over call commitment their of second Digital to in that, our experiences

Eric Hession

$XX Anthony. delivered $XXX million ago versus second revenues of Thanks, Caesars year-over-year now trailing XX% we quarter million, period. million. of generated the and have record $XX quarter, quarterly adjusted million EBITDA year this net set a XX-month Including Digital $XX up EBITDA of in

hold EBITDA improved year. Net and Our in within in net remained points by XX% our X.X%, flat year-over-year, to our driven revenues the quarter basis betting which XX increased XX% revenue flow range. last of sports handle through segment versus

product the of mix reacting improve continues offerings. increasing positively to side our sports to parlay our are and Our on in-game and customers

Australia. app, to parlay [ percentage in Zero drive consistent ] be the in customer in early the themed acquisition which operations the our quarter, we've which that of of Flux, of June, QX. [ actively content, In exclusively the introduction of of the company increase has to in in of points designed ] [ basis ] revenues. continues betting wager our The successfully our net hold the observed game sports XX% grew volume the Caesars type XXX engagement. In revenues percentage continue wagers improvement XX exciting games. We contributing innovation bet stage and iCasino the We growing will with leading ] based trends team improvements segment, new point on new throughout for branded offering second grow online Horseshoe July, product we the including Caesars driven growth Flex started year-over-year as to a Wind hold. a driving a technology with in consecutive by and and sets enhancing iGaming Michigan adding [ We're closed total in already completed product by our the acquisition year-over-year, Palace Zero iGaming the for basis year. XX% a and

pass and in finish mobile on be offer progress about to wagering. set now we up I XX making balance XX well we the in I'll for of a -- back year. year, the comments sheet. offer are We continue which Brett to believe sports the the we iCasino some now head North back optimistic to the we're we call strong As for and jurisdictions, sports half of bank American both

Bret Yunker

cash free of flow Strong was million Term Eric. over Loan $XXX reduce Thanks, XXXX generation permanently our in to QX B. applied

years now refinancing Our X maturity past over activity our the nearest maturity profile years our significantly with has X away. extended

markets of capital continue opportunistically to lower the We debt. monitor our to cost

in CapEx Over to As million [indiscernible] is nearing capital down cash Tom. by cycle completion to we our Anthony in free $XXX noted flow. elevated expect previously, setting the see increase coming roughly investment and XXXX,

Thomas Reeg

obviously than little shift. terrible Thanks. in had year-over-year, starting wasn't decline more calendar a April the month deeply was numbers us at and were last to April in more month of when regional. clear To into June, how would That Easter out. the the in regional up you. both you look dig We're that. May was talked you shake for if April, XXX% -- a But we year-over-year.

to peak at New center items casino look the you month or If disruption That's at Caesars so. now. next quarter, right of specific for construction the continue going in Orleans the in the were

a time of This the year's as the about year. quarter well. us the us Reno, groups Group of XX% one of followed in Reno that those Bowling is who know bowlers. that size hits in biggest So long of last have you this are

million bowlers XX,XXX $XX combination well million missing they direct $XX we're other as channels. in them of us And and will nights July into likely book So left third cost the those quarter. The over X -- room those last more from continue of quarter items over the through year. and of end the EBITDA,

New will Orleans Labor Construction Day. complete

hot we about the opening half property Indianapolis of the Virginia for impacted in In the addition, Churchill's quarter, [ Terra and temporary ] anniversaried in quarter.

$XX look year. before gaming of New tax then Orleans be way quarter, third get the that us like without I'd open product. I there would looks Virginia quarter forward, rolling as about with of new to of it's work this. to million something Recall a the So casino that New end out benefit got incremental full we the expect Orleans we've revenue expect and Fourth of the in taxes -- quarter

we'd this. that million $XX of in looks In good be raises with probably ] I regional. the a in union about grower quarter fourth to 'XX third expect quarter. then headwinds [ pleased about very feel quarter, contract had So Vegas last we year. similar venues And we would and Keep between the employee weren't mind, in open plus

year. that second opened last construction subsequent quarter were So restaurants under and to

margins particularly XX for than and in was [ us. before that Obviously, well. the quite we [ year-over-year. grow. was the a the the X did, knocked fade are to and [indiscernible] that well. hotel cover for range. heartened came We were ] mentioned in performing the that less EBITDA. that's difference rooms -- quarter-over-quarter held quarter. the And I'm nonevent ball balconies off Anthony ] in we almost our That's [indiscernible] increase remodels So XX% the online. lift, Versa with has up the That's hold

certainly should successful on our possibly since involved. the and Caesars most been that's recently, have open the quarter this that of we've connector tower in Just should tailwinds that history further in hotel been renovation

the what feel year been is 'XX. the nearly told XX% know of I of of that's the start. year very growth, Expect revenue that is in we've we to of that July excess in about we quarter another target. that. Rest about excited estimates, good strong. digital, Growth into what's deliver. you So growth. but to to about is flow-through, which looks net expect post Eric not XX% reflected rest a fantastic Vegas off talked and that

third get be about we'll of the we'll quarter, good and feel -- we end football. So this by quarter then into into

in very the the good we the us Caesars out gains Horseshoe we've feel had since headed. is help iCasino Palace brand, online. that about that can digital second where rolled on Expect build brand So

strong for of digital all out and quite our within targets still well us So past seem momentum laid in in we've is grasp. the that the

of year. the CapEx that. And in XXXX what's of we will the in brick-and-mortar merger that of as cycle cash on by the -- CapEx That entered into about hundred when digital opening bring portfolio, in million So million. going good gross couple feel a the very see going our Bret in closed free on, that to $XXX both lift finish we we're coupled flow. and significant And hit Virginia down a with the end roll CapEx out then we'll we will with over Anthony

expect be that what for As flow. looking free cash with we'll we stated do should you to us

reduce levels get with stock, to that, -- as shouldn't surprised that buyer I a to surprised be current plan stock to we if of become to At questions. be continue will reduce us And back for I We turn point. you see wouldn't you leverage. debt inflection in the it

Operator

Instructions]. [Operator

JPMorgan. Our first with question comes Joe the line of from Greff

Joseph Greff

Vegas. Las nicely ahead Street the -- on were question a at the nothing XX%, with start Obviously, results and to we and on want margins I forecasting to of there. what were knocking of sneeze

favorable. and that? maybe the in or very of that the between talk casino and pretty looks I would some make for Can line, continuation a I here. best what's that gaming KPIs the at gaming margins. the it's ] the in you the contra been through sustainability If X relationship you good X of obviously, put was queue. [ that Going biggest least or it about certain mean Slot maybe And revenue revenue various lead X, to of assumptions revenue quarters gross like driving

Thomas Reeg

at at to all. So changed I'd has our Q. -- I'm the my approach Vegas standpoint, say our promotions Joe, not looking from not in

continued I what the quite pricing team Vegas. got bar. we're that power a So is we great in here looking known you're have found time. We've don't to we what for Las But some We've has -- that at. raise that know numbers

you our to second of If look back 'XX quarter record. was EBITDA the all-time

paying years that business So was $XX State was all-time international pre-union a That That ago of million was record contract. that and we're lot comping since back. was our headwinds Farm. of EBITDA There's quarter. about X coming

a little Farm expenses revenue year. ago, recur EBITDA years whether X from our that or like every the it you under had State quarter. is $XX $XX So that million was lower And doesn't stuff, million down of

We've despite So headwinds -- been million to speaks through, eaten team. of of able that. we've our $XX to that million

we're and I a that. here, proud think our testament out of that's to how operate guys pretty

Joseph Greff

revenues. the and this no target digital. for close year, on And in of a my hundred on good question, And second it it forecast has your that thinking doing side million one's in looks then casino out how you higher EBITDAR. Tom a things, forecasting margin you're of or numbers, you're of Is job do a years that be could know consensus couple taking you next there Eric to OSB Great. it's for much in if $XXX look the like presuming couple knock to the you what EBITDAR Clearly, Obviously, I'm I at sort in million of than or about next in And you, that. But couple into of segment. of a account quarters? internally? of pacing the have

Thomas Reeg

Yes.

less couple their a $XX than betting were -- be agree that not I were and tax profitable on as the states and in things. more flow little the is of this but margin laid Sports I ultimately should of perspective you that $XXX more you that neighborhood you So of of between going margin would on you talked the top delta legal are get XX% a and suspect. Last a line, through, way to that our growing rate, about with about we We revenue at billion as look if you $X as and sports than EBITDA, look out net is iCasino now million, we're year. there and last the from states million well legalizing, XX% at large quarter, year. iCasino

flow year? good that. The same get years line, get XXX also key talking for how off And the next it will that be, and roll the that's feel contracts we've do to partnership I X will [ about can bottom we the So now. ] of been then about to we again the we

point. You'll at some believe it

Operator

Santarelli Bank. comes with from of Deutsche line Carlo question the Next

Carlo Santarelli

less half Bret. I Anthony, back I both was to more everybody, of just X the Las Vegas. year or questions, of had -- relate the which kind Tom, of in

next bulk this I you contract, little The talked first that might Tom, contract. That XQ, should have one, you we'll union clarity, if the Is minimal. some you for XQ escalator about mistaken, accrued in correct? only the the means and that costs, understanding presumably $XX looking October, relate sure not understand make are to would related which year, relatively increase that whatever from of I'm a where the my in and I under which just is which of last incremental want to the see is million I'm properly. the of in so coronary bit to this

Thomas Reeg

That's accurate, Carlo.

Carlo Santarelli

right now. then second is obviously, Poker World And Okay. one, Series of happening

you, brand been cash in a gaming good kind and guys but has the the of you general. the not of tournament holistic having have that for just across the [indiscernible] You play in itself, properties pretty assets little kind had at Could impact historically a is generator for that comment bit about present?

Thomas Reeg

Yes.

So about Strip, a fills World almost financial of best side time was here. east recently, actual noticed specifics the our ever lot a of holistic, talk can from Eric talk on Series XXX World This the when the about can of at as It we've I'll degrees a perspective. rooms it Series. be,

we see hotel. that's our We see play slot about and quantify, benefits to of games. table for a in-house, We actual of gamblers in So benefits a time event Eric in in and have in can benefits beverage see group of the food us. ancillary to and economics group the a significant hard good all talk but our

Eric Hession

our Poker Carlo, line. you It's of we -- received skins if in and states. from basically Series shows renting revenues other Yes, World P&L skin the the that it other that Plus our up in

for make of it here Vegas. actually Tom we and economic record amount balance then a land-based number. royalty money online consistent. The does As the are. a balance huge the poker in Series an does as and venue going you it's the whole casinos skids in year mentioned, Poker that of but the the be million and had an that's growth the economics and between okay, streams perspective, then From line. Las there $XX very the $XX and the at EBITDA a And then It other that million makes where to see is

Carlo Santarelli

parameters, what's quick you you kind then if of [ Las group things had XX ] And be Great strengthened nature? one the What you could, that give in booked? you follow-up. Vegas period. some mix pace for could guys. i.e., expect just of pace I Could mentioned Anthony,

Anthony Carano

about year. And a couple great a the I mid-teens job tick Yes, see as into 'XX. doing come Carlo, the mid-single been last up and said, I of as there for market, so of we'll very months think for above has in going this mix bookings well. the digits and future up really, is [indiscernible] strong in

Operator

comes from of line Montour Brandt question with Our next Barclays. the

Brandt Montour

at [ there's queue, we from the of it of acceleration and I Tom, the your Las first seems mentioned the dynamics just about that about to leaving? room what do -- up room into supply you're quarter-over-quarter. I think from you is of compression rate how finding nice able room the feel year? that? can much you're you're from in want -- to assets And well, out into that it want Vegas you rates, ] Also, of to back rate. talk to coming strip the How able rest on maybe speculate there's some like the incremental hotel curious, -- if least how we that hotel sustainability If the about obviously out see, just -- go was sequentially. and of of of you you do here yield Rio

Thomas Reeg

we've Yes, seen when Brandt, we pricing not elasticity comes it a Vegas. in lot to have of with

a nongame holding There's that amount is restaurants, gaming kind for if of lot board, And ATM of rooms, you at across through and So pool up demand we not fees, driving the driving look well. Vegas have where cabanas. and continued. massive just -- price has of continued to just take we're it we're a

EBITDA leads is more that great. to which overall, so And

Brandt Montour

little over and maybe longer-term could stepped-up to the of you and that sustainable? have Is getting lot a in OSB year-over-year and growing quarter we out? again in dynamic to Or that medium carry about you this getting quarter. term? a about in that go hold growth this mix hoping compound flat get you Great. the bit for the overall Okay. the need from of and know dynamic growth start EBITDA you volumes with guys can quarter, to to laid Eric talked do your targets handle digital, EBITDA back terms talk in And counts to revenue there. How player longer-term looking here -- you're long last then I [indiscernible]

Eric Hession

allows Yes. it's on the more couple It's trigger-based us caused that previous overinvesting quarter, reinvestment flat is, a and increased system on marketing launch the mentioned think provide the able marketing to I butter some question. as that volume peanut just we perspective, And were with betting We've much investing good had taken to our to basically approach, thus also have quarters in us recently from that a much hold in volumes. And wagering it spread be about side. lower some had database. and impacted way more to been of customized actions the approach. and a of we've segmented we revenues and then been a a to new increased Prior it a marketing, from one sports that, end perspective of

And expect, up. the that. as profitability reduced you'd gone dropped volumes have off, but we've the has So

isn't was too it about business losing we concerned really be getting the so business because unprofitable. And you'd that that are

and start that to some it quarter, actions will we the as we accelerate that to see this what lap revenue think start growth I took. is of you'll start

continue to volume you'll growth hold the So will grow. think and see I do starting solid

head back And year. of so the as we that the into half compound should

Operator

of the Our with next Politzer from line Fargo. question Wells Dan comes

Daniel Politzer

mentioned that actually First from of was most on quarter coming April June the in regionals. you up. and the that decline was Tom,

gross to As at for gaming looks revenues we what's a the different tell reportable, look it story.

of that, that you So maybe with kind dynamic talking mentioned on there also Is And net reconcile going with is revenues? talking are about when you worth do how this? promotions about? a we

Thomas Reeg

talk Dan, we've EBITDA. about I only a long known each time. other

So going gross I'm whatever gaming is attention not in revenue, on paying to.

XX-something any piece XX for changed that not I profile ] were the was and business. Reno, and promotional New as plus of our We have quarter in our off, We described. [ Orleans what, of

So and as in anything continues to the a decline in the stronger. for than but both we're April you've along. doing Obviously, others we that segment. strong seen, months there there's more to are I we doing that regional we've nothing business got us, and promotions, as in are said, nor XXX% June grew as bump of to that need not whole EBITDA, May was that see are others respond as

Daniel Politzer

terms we've the M&A it. to limiting a stock out could Is environment, you your some stock And here lot that getting just trading, there's a given headlines where headlines in your helpful. there opportunities view do Or seen there? of That's lately. obviously as Got been price you -- in of then see the involved? notwithstanding there is the are that factor

Thomas Reeg

your I'd involved say we're that's are. going. is tangentially you we're [indiscernible]. know even just reading We're the not at where same -- there's is -- happening in not I question headlines whatever

portion will what issuer terms be we generated shareholder up even leg that going mindful wherever more significant in do, a said through of was these greatest it not an open -- free I've flow that In stock, to are spend through the a we we've returns. lot stock have of we've I'm runs value significant used M&A assets. down, M&A, ] payment producer those the driven shareholder for today. of so our [ before stocks, opportunities. The as a that -- as external cash XX as project an of value We're through form that of we'll

execute different that equal, continue we going give change. things I'm a away. -- stock to of If So but value stock all you not We to I moves in neighborhood, can think will our external drive start us stock. opportunities, should expect more to buying some the our to if

So that's sit where we today.

Daniel Politzer

in one Got it. quick And sneak clarification. just then could I if

I'm will a look declining second by correct? You mentioned similar that quarter. the amount for it quarter, the assuming in similar to the year-over-year, was third regionals

Thomas Reeg

Yes.

in same we're the dealing that the all second have X us impacted with third the quarter. We in quarter --

Labor So New going quarter Day. Orleans -- full then impact obviously, disruption since and second the opening into July quarter through, we're group [indiscernible], second the Reno year. peak last until I guess, extended

be will X all So headwinds.

that in think win you fourth the Recall And in then end and per in and opens. I to opens, quarter, as as entire expect start to that highest is get we're capacity you segment of doubling move growing This position again. quarter the the the the Orleans toward Virginia about flip quarter gaming I'd New when we'll we the be Virginia temporary enterprise permanent. to the in

So I've driver. hit that New a the in stages. strong flow will Orleans the on Casino should be And initial already way the through revenue

Operator

Steven Our Stifel. of next Wieczynski from line comes question with the

Steven Wieczynski

Tom, can another are you When grow you hear you Vegas that that EBITDA year, this here. year, I saying second were for for the talking basically the right? about of in full half you Vegas? think quick clarification Did year-over-year

Thomas Reeg

as said to second third the both quarter. fourth impact grow a would last I'd grower to not. year, I swing of half Vegas first quarter offsets the in would did a in for from the year. need we and on -- that hold hold be You our We expect call, quarter's

Steven Wieczynski

that which segment, which some [indiscernible] then shift. there. And steady pressure with play a but in little was Or mix regional I was on much had play just bit -- little that And don't certain entire the a seeing gaming basically your just unrated know bit play? you geographies there volumes, rated wondering reduction is -- the comment more and you're growth you, unrated front in reduction, a the I are of you in there where some of but have unrated decline in portfolio? a Basically, play that pretty the basically said saw going was your if Okay. across remains it

Thomas Reeg

same This in there's would opening it, it a worse competitive off a to is always average more variability unrated and than, due call rated, our feel I geography. size. of the in in property. unrated where It's the regional -- you portfolio say

hours you them to you've Terra you've and if affect West, in about be between for [ at a coming got Indianapolis does -- -- unrated it's that more going think typical couple decline us, have the because a because people of it's away battle of in competition. convenient So and ] we good than some now at that to how more Hope from of unrated our versus unrated then had from you lost [indiscernible] rated, much you regional and have would around looking somewhere properties. And more like in other property if you're that I'm the like were

Brian Agnew

In for we'll and it to questions, the limit participants we can asking please time to the interest question of remaining then one some try take follow-ups.

So we've to that want get in we of got a people the bunch queue to.

Operator

the Next Kelley with line question comes Bank America. from Shaun of of

Shaun Kelley

terms to of you're digital. spirit I competition environment Eric, of expected OSB as and there's there's season the look in in side? or in is Just of you're what especially promotional flow-through into thinking quarter. as third some -- seeing go or ] fourth ramping products expected particularly Because a to little seeing flow-through the about the ramping and And you be opener. great. Have environmental in wanted seen obviously, bit of I time, to just lot think change and in volumes Obviously, environment back start we quarter to sort increasing NFL rates XX% the trepidation the about [ any CAC rolled the I on new a around out, think

Eric Hession

a paid acquisition fairly significantly paid are months, sure. to seen sports little the of I say affiliates kind the contractually both It's of X search, drop The last there we've social. based, on cost side. the betting that on even to over would across X of kind but bit Yes, degree. the board,

sports the has intensity the side, dropped that from say from acquiring betting customers. I So would

the side, the remained casino say that pretty for costs year. I us would throughout have the On constant

does target channels. degree. not that. money otherwise we instances, off drop to And then the demand satisfy spent we have some each it a don't we would because And able side, casino amount for go of above the there the of to On definitely CAC the summer is the certain and in certainly, we're not

So we real for and August expect everybody up indicate go would signs point that seeing But at head I'm that a last dollars months. spend aggregate would football. the in in September as nothing as in from the change particularly in and up trends per third few I the acquisition, into just our this late the quarter, would terms of cost fourth

Operator

comes -- question next Our from the

Brian Agnew

Hello.

Operator

your if is mute. Stephen, your open. line Check on

Stephen Grambling

hear a it me? [indiscernible] name, hear I for that you was Can that couldn't my if second.

Brian Agnew

Yes, you're good.

Stephen Grambling

Yes.

the strong any one Casino, on could we seen? flow you how kind some leverage quickly can that that from behind here? the on thoughts that, and any you there anticipate up build So is Horseshoe given launch digital, other brand could think of through that should operating provide we've open reverse investment And you of as

Thomas Reeg

launch expectations, kind through. on We with launch nothing eating Palace into do [indiscernible]? you generating us -- speak this different here. if saw expect No Eric, online through. of Caesars you costs flow on want to flow I'd

Eric Hession

Yes. We're launching going did effectively with it one we're at to time. slightly a differently than do state Palace, we Caesars where

ending approvals, roll in to frame. September And the the into out other going throughout we'll Michigan time Ontario in in So in launch QX. we're pending year, regulatory then states

expectations going over flagship a be year's and will it even lot it -- just a it's of a tamper brand, with it's frankly, like standpoint, Horseshoe. we a quite Horseshoe Caesars really different. I is great would But also resonate that the we that's and the from is that going to feel little So better have, to bit app And lead got brand. be customers. the a

strongly, but market expect don't would Horseshoe to share that the think I I command perform it will So Caesars the [indiscernible]. very

Operator

Jonas comes with Securities. question the from The next Truist Barry of line

Barry Jonas

maybe tax offer talk Illinois system that and graduated the there at are if does recently maybe same rate. in offset the time, gain can opportunity an you that to higher tax about tax to its ways raised Curious OSB you state share?

Unknown Executive

at Yes. is some or million think changed us haven't would that of or Because to all to think, of the action potentially behavior take a change. we're on graduated are at levels happening. that to $X graduated planning point, based of tax, the increases type us. state. year. not our If the their but that in beneficial that certainly not other change It's of reinvestment that's to tax, But I more really flat is anything they a tax some favorable, others odds seen impact I that favor We're in tax this under the I indicate the their impacted

Operator

comes next of DeCree the Our from line CBRE. with John question

John DeCree

M&A one on Maybe the more front, Tom.

I think side maybe buy any the strategy selling side or not pretty the or portfolio this some point? on culling your on you possibly to the if on your stuff fit clear. views enterprise noncore that are speak Curious overall the might at thoughts

Thomas Reeg

Agnew like down hammer? John, you sell ] expect going do how laying we're assets. the sales, you But to [ John, operating shouldn't on that Yes, casino any

expect I could and should As to I noncore, you us, nonoperating opportunities. casino us at of trade think for a are in there assets that the portfolio accretive said previously, advantage try those significantly to multiple take

So no change there.

John DeCree

the I'll hammer quickly to get ]. out of avoid queue the [

Operator

question the line from comes Next Katz David Jefferies. of with

David Katz

more for One Eric.

as sports us for like much would you can and Anything that looks to a $XXX how picture get paint us. we [ help of the qualitative to each? mix what betting, iGaming between As million],

Eric Hession

Sure.

rates -- X to relative the of iCasino rates the continue. going that the growth growth are I betting sports think and

As of iCasino as online our to percentage we app a continues Palace grow business. mentioned, Caesars the

So I it's over that be year XX% will pace that. faster to incremental old. than And Horseshoe accelerating app obviously, it's just at a think a then the

still From be growth there's iCasino going see side, in the where to you'll like it's it's XX% the we range. at to be grow you're seeing continue so to betting than the significantly solid going And sports probably pace more a there, the now like do sports betting but faster app side. feel

converge. And a higher so over casino will mentioned, slightly on rate do blended relative we Tom those the have the as revenues tax side. X time, And from

is through incremental be I little flow the that betting in eventually, will iCasino So more a bit think sports that the total than dollars. on lower the profitable But revenue.

Operator

question next Beynon comes of from Chad the Macquarie. line Our with

Chad Beynon

we've come more of Vegas, and your in property properties 'XX there's guess, the of to major of of In what's out then, in actually terms seen any back we I the given mid-end effect? out, Or -- QX, half does help respect off, expect the boat capacity a that rising terms tiers some importantly, in thanks Tom, of did difference should terms of the first with for see of since you the that commentary market? some growth come

Thomas Reeg

Chad. Yes,

maybe the are our the in what in of highest our our rhetoric around finding seen properties fashion. portfolio, Palace are not That's non-luxury performing properties end Caesars luxury. I've the So of business. Obviously, we're all underperforming a bulk similar has

all for the us. And similar closing look in sorry, on volatile the growth, that's power bag most of from [ pricing I it's So us. terms but games for pretty think then they a table visitation, perspective, mixed I'm Mirage], a

-- our one rooms. a our our helpful as our state and you of existing ended rooms it's terms in up walking, think to get went we'll think Mirage of that assets theaters there's probably market, it we I you other properties, But proximity properties. the you given less to that feeder its served in of at share at those if

in a really direction. I think either material don't So going be that's driver to

I bit yield little lose think would we able that better, neighborhood occupancy that each in we'll X,XXX-plus have benefit from feed a but the to be other. you more little rooms a

Operator

from Next line of question TD Jonathan the ] [ Cowen. Navarrete comes with

Unknown Analyst

you do earmarked were it Or expect of I intention or has Tom, performance you lot I [ just to that we to with that? but repay they up that said a third [indiscernible] in some but sensor that billion the you think as VICI regional get current well? be And the of option those mentioned -- quarter can clear had expect has around get $X.X this? it's whatever would in still on since exercise all to gross in capital $X.X 'XX, been return billion assets. changed know you the been then, proceeds. the ] Or the proceeds, if net to ends being

Thomas Reeg

Yes. end their is Thanks for by real option assets to estate year. ] the terms the calling Indianapolis question. you'd of the under the of in [ the have them Vici, ask that

we But option we yes, capital -- be the on there since should pay been EBITDA. like that check proceeds $X.X something clear you formulaic, billion, existence. The that put If XXx pretty debt. should as element we were We've will expect exercise. that would last so those, not coverage, like X.Xx a gets have are I We that into to have this The became option down of proceeds also expect to would of those that some you bulk well. return get that.

Operator

line Bender next JMP. comes Jordan question Our the with of Citizens from

Jordan Bender

sports driven exposure pretty question years, by I to the consumer Do we reduce weakness the business. My of really the assume obligations. In your some your is you your in several is, flexibility give That face any that event number of has the that? across last substantially in just online portfolio. which have Q, sponsorship increased some part to you

Thomas Reeg

Yes.

were the those in all launched sponsorship had deals signed app Sports they varying So we Caesars sports terms. XXXX, as

to rolled line. have and some already the bulk that launched to off still one being rolled savings in significant pieces ESPN bottom directly them off a will of in as they early we off roll mature or So ESPN that at significant we there flow big that have see expect 'XX

Brian Agnew

in have be the been to declining go-forward it obligations Jordan, clear, through [indiscernible]. contractual afterwards. a just those offline can on go We basis

Operator

Capital Guglielmo question next Securities. from comes of with the Our Daniel One line

Daniel Guglielmo

all understanding there hold found seasonality last And to looks For the there? there's half, it the company that margin you those remain this can levels you each expense second across point some quarter efficiencies specific Is versus through quarter. expect we there? anything all segment, can like to --

Thomas Reeg

to margins million. It's if Yes. terms who full been dollars trying constantly expense about what as to hold It's going in million in of you're things of of or a both and more we've little a expect thousand run big a I this page revenue seasonality seeing to are the lift see smaller review, lift to added much of our labor there's not a Vegas year on maybe you overarching just anything in question, quarterly X, become in lot that's few of obviously, the a Vegas. in at I the Like subsequent since And that, nearly that would significant is up of -- an kind that face We're a really $X up. Well, costs efficiently, than looked Carlo's any hundred or we that's result one. as through side we've save $X earlier or year in point the talked our of we've Vegas stuff. for held public company X impactful. can't in segments, lifts was. we're

Operator

Jefferies. line follow-up We question of have a from the Katz David with

check on see David, you're if open is to mute. line Your

David Katz

regionals. the about that. wanted Tom, comment, about Sorry just up I on follow to

a I $XXX similar EBITDA, XQ think for similar decline [ X%, down of a not of ] what referencing of is number million you're correct?

Thomas Reeg

know the the that I'm facing faced we don't I'm telling And in same you, Yes. X%. we're I second that even headwinds pointing to quarter.

telling same that third regional I'm I Don't So short expect to step. would you the telling it's XXXX. we're you quarter take facing fall of X%. just as I'm

Operator

Ladies like closing turn over Reeg questions back you. no Thank I remarks. to would in and gentlemen, Tom the now to further call the I'm showing for queue.

Thomas Reeg

All right. the the summer. rest Thanks of everybody. Enjoy

Operator

Thank you for today's gentlemen, and participation. concludes call. this conference Ladies your

You may now disconnect.

Caesars Entertainment (CZR) 30 Jul 242024 Q2 Earnings call transcript