Casino operator Caesars posts 13.6% revenue drop on pandemic woes
Monday 11th May 2020
(Reuters) - Caesars Entertainment Corp (CZR.O) posted a 13.6% fall in quarterly revenue on Monday as some of it casinos remained shut and people kept away from gaming tables amid the coronavirus outbreak.
The gambling industry, which counts on air travel and large groups of people in close proximity, had seen demand come to an almost standstill as people stay at home to battle the pandemic.
"Our first quarter performance reflects the significant revenue declines we experienced as a result of the closures and stable year over year labor costs in March," Chief Executive Officer Tony Rodio said in a statement.
The casino operator in March said it would temporarily shut its properties in North America.
Caesars said it expects to implement a phased reopening of its properties in Las Vegas, Atlantic City, Council Bluffs and Lake Tahoe in line with anticipated business demand.
Casino revenue fell 11.5% to $958 million in the first quarter, while net revenue fell to $1.83 billion from $2.12 billion a year earlier.
Net income attributable to Caesars was $189 million in quarter ended March 31 compared with a loss of $217 million a year earlier.
On a per share basis, its loss rose to 36 cents per share from 32 cents per share a year ago.