Caesars Entertainment Q2 Loss Widens - Update

(RTTNews) - Casino operator Caesars Entertainment Corp (CZR), Monday said its second-quarter loss widened from a year ago, hurt by higher operating costs and other charges, despite a 3 percent revenue growth.

Las Vegas, Nevada-based Caesars reported a second-quarter loss of $466.4 million or $3.24 per share, compared to a loss of $212.2 million or $1.69 per share last year.

Analysts polled by Thomson Reuters expected a loss of $1.19 per share for the quarter. Analysts' estimates typically exclude special items.

The results for the quarter include a $31.9 million charge associated with the increase in fair value of contingent consideration from previous acquisitions, as well as write-downs of related to Iowa dog-racing.

Operating costs rose to $2.08 billion from $1.99 billion last year. Interest expense for the quarter increased 21.1 percent to $653.7 million.

Net revenues for the second quarter increased 3.0 percent to $2.19 billion from $2.12 billion last year. Analysts had a consensus revenue estimate of $2.22 billion for the quarter.

The company credited revenue increase to growth in the social and mobile gaming business of Caesars Interactive Entertainment Inc., partially offset by casino revenues that declined 1.9 percent to $1.38 billion.

"For the second quarter, our business demonstrated continued strength in Las Vegas driven in part by our hospitality investments, which was offset by the persistent softness in the regional markets and Atlantic City," said CEO Gary Loveman.

CZR closed Monday's trading at $13.67, up $0.31 or $2.32%, on the NYSE. The stock further gained $0.32 or 2.34% in after-hours trade.