Caesars Entertainment Delivers Strong Q4 and Full Year 2024 Results, Outlining Future Growth and Increased Free Cash Flow
Caesars Entertainment, Inc. has reported a strong fourth quarter and full year 2024 earnings performance, exceeding expectations across various segments of its business.
The company's consolidated same-store results for the full year of 2024 showed net revenues of $11.2 billion and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $3.7 billion, delivering an impressive EBITDA margin of 33.2%. This achievement underscores the company's ability to maintain profitability amidst intense competition in the gaming industry.
Caesars' Las Vegas segment demonstrated resilience despite a challenging comparison with last year's inaugural Las Vegas Grand Prix F1 race. Same-store net revenues for Q4 were $1.1 billion, and adjusted EBITDA was $478 million, down 1% versus the previous year. Margins in Las Vegas remained healthy at 44.4%, in line with expectations.
The company's group business delivered a strong performance, accounting for 16% of occupied room nights, while recent investments in its Las Vegas room product and gaming offerings have yielded some of the strongest returns in the portfolio's history, driven by robust cash ADRs (Average Daily Rates) and increased gross gaming revenues.
In the regional segment, net revenues declined by 1%, with adjusted EBITDA falling by 5% year-over-year. However, there was an improvement in the rate of decline versus the second and third quarters of 2024. The company's investment in two new facilities, Caesars New Orleans (remodeled) and Danville, Virginia, contributed positively to early results, and both properties are expected to exhibit strong full-year performance in 2025.
Caesars' Chief Operating Officer, Anthony Carano, noted that the company has concluded an intensive capital investment cycle begun at the close of its merger in July 2020. Several large CapEx projects have been completed, contributing meaningfully in future periods and cycling through competitive pressures in the regional segment. These investments will drive a significant increase in free cash flow for Caesars in 2025 and beyond.
Eric Hession, President of Caesars' Sports and Online Gaming, highlighted the impressive performance of the company's Digital segment, achieving all-time records in net revenue ($1.2 billion), EBITDA ($117 million), and cash flow in 2024. The quarter saw a surge in digital net revenue to $303 million and adjusted EBITDA of $20 million.
The results demonstrate Caesars' continued ability to deliver solid financial performance, even as the company navigates evolving market conditions. As it looks ahead, investors are likely to be encouraged by the prospect of increased free cash flow in 2025 and beyond.
