Caesars Entertainment Corp. today reported its fourth-quarter earnings, announcing a stunning loss of $1.756 billion.
Revenue: $2.078 billion (up 3.2 percent from the fourth quarter of 2012). Casino revenues declined $75.3 million, or 5.1%, compared to the previous year.
Earnings: The company lost $1.75 billion, a major hit compared to the $435 million loss Caesars suffered in the same quarter a year earlier.
What it means: The company attributed the bulk of its losses to deteriorating Atlantic City market, where Caesars had to deal with impairments of about $2 billion.
Casinos revenues also declined due to continued weakness in Atlantic City, which has suffered from increased regional competition. Softness of consumer spending in the domestic gaming markets outside Nevada also negatively impacted casino revenues.
Quote: "During 2013 we invested significantly in our properties and executed a number of initiatives to enhance the company's capital structure and better position the company for sustainable growth," said Gary Loveman, Caesars’ chairman and CEO. "While the operating environment remained challenging in the fourth quarter, we are encouraged by volume and visitation trends in our core market of Las Vegas. We are excited about our prospects here fueled by organic growth and continued investments in hospitality assets, most notably the Linq and the High Roller. Looking ahead, our efforts to improve the company's capital structure remain a key priority as we build on our recent actions and leverage our operating and financial toolbox to create value … I am proud of the milestones we have reached to date and look forward to making much more progress."