Profits from 2020 so far
Gambling giant Caesars Entertainment Corporation (CEC), which runs 40 casino facilities around the world, has announced profits of $123m for the first quarter of 2020.
the first two months showed enough high growth to keep the corporation profitable
Despite furloughing up to 90% of staff in the US and having to shut global properties since March over the outbreak of COVID-19, the first two months showed enough high growth to keep the corporation profitable.
The total net revenue of $1.83bn is still down on last year by 13.6%, when CEC reported taking $2.12bn.
Temporary closures
Operating profits were strong for CEC in January and February, rising by 12% compared to this time last year. However, profits were hit hard in March, with both US and UK outlets undergoing temporary closures.
The shutdowns led to revenue losses in places such as Las Vegas, which felt a hit of almost 14% from $995m to $882m. Earnings for the rest of the operator’s US outlets fell by 13.5%, while other casinos worldwide saw a decline of 12% year-on-year.
a total $66m loss from operations
Caesars also revealed that operating expenses were higher by 1% than in 2019, although total casino costs actually fell by 3.5% to $590m. This meant that, while there was a total $66m loss from operations, by keeping other costs down the corporation was able to report a profit for Q1 2020.
“Extraordinary challenges”
Following the Q1 performance statement, CEC chief executive Tony Rodio said that colleagues had to perform under “extraordinary challenges” that COVID-19 placed on the corporation.
He said the results reached are a reflection of “the significant revenue declines we experienced as a result of the closures and stable year over year labor costs in March as we continued to provide pay and benefits to our team members for the first two weeks of the closure period.”
The corporation is currently taking steps to prepare for reopening all outlets. Operations will resume with “the health and safety of our employees and guests in mind.”