Caesars Entertainment, Inc. Q1 FY2026 earnings call

Anthony mentioned Las Vegas had flat revenues but adjusted EBITDA $426 million, with hospitality occupancy 95.3% and ADR growth. Focus on elevating product offerings. Regional segment had net revenues $1.4 billion +3% y/y, adjusted EBITDA $435 million down $5M y/y. Acquired Caesars Windsor and opened Harrah's Oklahoma. Digital segment had record net revenue and EBITDA, driven by sports and iCasino growth. Tom noted Vegas market healthier, regionals off to strong start in April, digital strong with benefits from rolling off partnership expenses.

Las Vegas: Adjusted EBITDA was $426 million versus $433 million last year on flat revenues. Hospitality vertical saw sequential improvement with 95.3% occupancy and 1% ADR growth. Regional segment: Net revenues $1.4 billion, +3% year over year; adjusted EBITDA $435 million, down $5 million from prior year. Excluding Super Bowl impact, EBITDA improved. Included acquisition of Caesars Windsor and opened Harrah's Oklahoma. Digital segment: Record first quarter net revenue $374 million and adjusted EBITDA $69 million. Net revenue growth in sports and iCasino, EBITDA margins expanded.

Forecast sequential improvement in Las Vegas operating trends driven by strong group and convention mix. Regional segment expects benefit from strong group mix in Reno, inclusion of Caesars Windsor, Tahoe renovation completion, etc. Digital segment sees potential for 20% top-line revenue growth with 50% flow-through to EBITDA.

Q: Talk about Las Vegas leisure category stabilization.

A: Leisure market healthier from last summer lows, weekend and group events strong, some soft weeks but group business expected to be record.

Q: High-level on equity value proposition.

A: Consider free cash yield, delevering, and returns on growth capital projects, mix of share repurchase and debt repayment.

Q: Regionals and consumer resilience.

A: Regional consumer resilient, business feels firm.

Q: Digital 20% top line path.

A: Sports volumes down 1% but hold increases offset, iCasino growth helps reach 20% range.

Q: Vegas all-inclusive packages.

A: Not break-even, profitable, bring in people profitably in softer periods.

Q: Vichy lease coverage.

A: No blow-by-blow update.

Q: Regional competition strategies.

A: Focus on service, Caesars Rewards, tweaked marketing reinvestment.

Q: Caesars Rewards database penetration.

A: Giant opportunity to convert brick-and-mortar customers to digital, app experience improved.

Q: Vegas occupancy incentivization.

A: No meaningful discounting shift, more group business crowded out OTA.

Q: Vegas group business and competition.

A: Con Ag Week lifted market, focus on filling similar weeks.

Q: Digital customer acquisition costs.

A: Opportunities in database, lower acquisition cost and churn than peers.

Q: Hard Rock impact on Vegas.

A: Mixed bag, expect competition in high end, but may expand market.

Q: Regional margins and revenue.

A: Margins could improve with revenue growth.

Q: Cash use and leverage.

A: Target sub-five times lease-adjusted leverage ratio.

Q: Alberta iGaming launch.

A: Optimistic, improved app, launch plan for sports and casino.

Q: Table Game Drop.

A: Timing-based in Vegas, Super Bowl skewed regionals.