Despite the increase in revenues during the first half of the year, Caesars Entertainment reported a net loss of $ 532 million (€ 474.9m). The loss during the first six months of 2019 is attributed by the company mainly to the high increases in general operating costs.
The income of the leader of the American casinos during the first half of June 30 was $ 4.34 billion compared to the $ 4.09 billion it earned in the same period last year.
These figures were known after the new CEO of Caesars, Tony Rodio, reported on the company’s solid performance during the second quarter of the year. Despite the negative results, the executive openly referred to the issue and maintained a positive performance perspective.
Rodio said the company is working to achieve greater efficiency in its operations and referred to the merger with Eldorado Resorts proposed by Ceasars. The executive said that there could be a potential balm that improves the company’s mixed financial balances.
“I am sure that the proposed transaction will create an industry-leading platform ready to succeed in our dynamic industry,” Rodio said.
Caesars’ biggest source of revenue during 2019, casino operations in Las Vegas remain. This year revenues have been $ 2.21 billion against $ 2.04 billion last year.
Revenue growth was also recorded in other areas of Caesars’ business. Room revenues increased from $ 755 million to $ 793 million, while food and beverage revenues increased from $ 774 million to $ 805 million.
However, the increase in operating expenses of Caesars in the first half resulted in losses. The company had a total expenditure of $ 3.83 billion during the first half. In this period the direct costs of the casino went from $ 1.13 billion to $ 1.25 billion.
General, administrative, property and other expenses made a resounding jump from $ 883 million to $ 927 million.
An additional charge of $ 50 million was also recorded in Caesars accounting, related to the deterioration of intangible assets. However, amortization and depreciation costs fell by $ 60 million, from $ 548 million to $ 488 million.
Revenue from Caesars operations increased from $ 407 million to $ 509 million; however, net losses recorded during the period increased from only $ 5 million in the first half of 2019 to $ 532 million this year. The loss accounted for before taxes also grew sharply from $ 28 million to $ 622 million.