Caesars Interactive Division Shines With 52% Increase In Revenues For 2013
Caesars Entertainment Corp. have just released their fourth quarter results which at first glance do not make for easy reading. Caesars is in the midst of a restructuring faze which started in 2013 when they spun off Caesars Growth Partners as a separate publicly traded company. This was done in order to reduce the debt which is $20.9 billion which is down from the $23 billion in the third quarter.
To get an idea of just how much debt Caesars are in, they lost $1.756 billion in Q4 which was blamed mainly on the deteriorating market in Atlantic City. They also had to write off $102 million for their failed attempt at acquiring a Boston-area casino licence.
While these figures are not pretty, the investors were not surprised as Caesars had already started taking measures to cut their debt. These included selling off properties like the Cromwell, Harrah’s New Orleans to its subsidiary Caesars Growth Partners as well as Bally’s Las Vegas.
Caesars net revenue for the period ending Dec. 31 rose by 3.2% to reach $2.078 billion. Not all is doom and gloom as net revenue for the quarter increases by 7.6% to $799.4 million with an overall increase of 1.3% to $3.07 billion for all of 2013.
The most encouraging numbers for Caesars came from their Caesars Interactive Entertainment division. They oversee the World Series of Poker, social gaming and online gaming. CIE reported a 52% increase in revenues in 2013 to reach $316.6 million. As to the figures for online poker in Nevada, CIE have still not released the numbers. Social casino games generated over $2 billion in 2013 and Caesars via their gaming subsidiary Playtika are a major player. The social casino sector is growing in popularity and at a rate far higher than that of real money gaming.