Caesars Entertainment reverses losses in third quarter

Caesars Entertainment, battling to emerge from Chapter 11 bankruptcy protection, capitalized on strong Las Vegas results to reverse losses in the company’s third quarter, the company announced Monday.

Caesars, operators of Caesars Palace, the Linq Hotel, Paris Las Vegas, Bally’s, Planet Hollywood, the Rio, the Cromwell and Harrah’s in Las Vegas, among 47 properties in 13 U.S. states and five countries, reported a 3 percent increase in revenue for the quarter that ended Sept. 30. Other properties are controlled by separate operating units under Caesars Entertainment.

Caesars reported a net income of $5 million, a loss of $4.38 per share on revenue of $986 million for the quarter compared with a loss of $756 million, $5.44 per share, on revenue of $957 million for the same quarter a year earlier. Net income was affected by a noncontrolling interest as a result of a pre-tax gain from the sale of Caesars Interactive partially offset by the restructuring of the separate Caesars Entertainment Operating Co.

In a conference call with investors Monday afternoon, Caesars CEO Mark Frissora said Caesars Entertainment and Caesars Entertainment Operating Co. agreed to terms with major creditor groups last month, which is expected to lead to the company’s exit from bankruptcy in 2017. The company filed for protection from creditors in January 2015.

Average daily room rates were up 10.6 percent in Las Vegas in the third quarter over last year due to increased resort fees, effective hotel yield management and improved pricing power as a result of room renovations.

The company completed the remodeling of 949 rooms and suites in the Augustus tower at Caesars Palace in July and at that time began the makeover of 1,166 rooms and suites at Paris Las Vegas with completion expected by the end of the year.

The company also began upgrading 2,240 rooms and suites at Planet Hollywood in September and is expected to complete that project by mid-2017.

Caesars also is investing in food and beverage in its properties, opening the Alto Bar at Caesars Palace and Gordon Ramsay Fish and Chips at the Linq Promenade. Still to come: In-and-Out Burger, Virgil’s Real Barbecue, Canter’s Deli, Honolulu Cookie Co. and JaBurritos in Las Vegas.

Company officials say they will continue to capitalize on some of its entertainment staples, the Britney Spears “Piece of Me” residency that has drawn 650,000 customers, spurring 18 new concert dates in 2017; the Jennifer Lopez “All I Have” residency, which generated the highest ticket price of any concert or tour in North America in 2016; the signing of the Backstreet Boys to a residency at the Axis Theater at Planet Hollywood beginning in March; and Celine Dion, who recently performed her 1,000th show at the Colosseum at Caesars Palace.

The company is continuing to roll out its self check-in kiosks in Las Vegas, currently used by 22 percent of its guests and reducing check-in time by 40 percent. With installations at Caesars Palace, the Linq Hotel, Harrah’s Las Vegas, Rio, Paris Las Vegas and Flamingo, the units will next be installed at Planet Hollywood.

Finally, the company is working to be one of the first companies to install skill-based games in its casinos. It has agreements in place with Gamblit of Glendale, California, to install its Tristation and Model G units in Las Vegas and Southern California and with New York-based GameCo to develop its Danger Arena product in Atlantic City.

Executives said the company doesn’t have enough data to determine how well skill-based games are performing in Atlantic City after they were rolled out last week.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.