Caesars Entertainment released its financial results for the first quarter of 2025, revealing improved performance driven by growth in digital operations and stable contributions from regional properties.
The company reported net revenue of $2.8bn for the quarter ending 31 March, which marked a modest increase from $2.7bn in the same period last year.
Despite a slight decline in Las Vegas segment revenue, the overall improvement in digital and regional segments helped support the company’s revenue stability and bolster profitability metrics.
Caesars’ net loss narrowed to $115m, or $0.54 per share, compared to a net loss of $158m, or $0.73 per share, in the first quarter of 2024.
This reduction in losses was supported by enhanced margins and operational efficiencies, particularly in Caesars Digital, which transitioned to positive adjusted EBITDA following periods of investment and strategic expansion.
Adjusted EBITDA across the entire company grew to $884m, up slightly from $853m in the prior-year quarter, indicating improved earnings performance despite certain headwinds in physical casino markets.
Caesars Digital posted a notable turnaround, achieving adjusted EBITDA of $43m, compared to $5m in the same quarter last year.
Net revenue in this segment also rose to $335m, an increase from $282m in the prior-year period.
This improvement reflects growing demand in the online gaming and sports betting space, bolstered by strong customer acquisition and improved cost discipline.
Management emphasised that the digital business remains on track for continued profitability in 2025, supported by product enhancements and geographic expansion in legal betting markets.
Las Vegas revenue slips
In contrast, the Las Vegas segment experienced a slight year-over-year decline, with revenue totalling $1.00bn compared to $1.02bn in the first quarter of 2024. Adjusted EBITDA for the segment was $433m, down from $440m.
The company cited lower occupancy and reduced gaming volumes as contributing factors, although these were partially offset by strong non-gaming revenue from hospitality, dining, and entertainment.
Executives expressed confidence that upcoming events and seasonal demand would restore growth in the Las Vegas market over the next several quarters.
Meanwhile, regional operations posted steady results, with revenue holding at $1.36bn, slightly down from the prior year’s $1.38bn.
Adjusted EBITDA from regional properties reached $440m, demonstrating resilience in customer activity across markets outside of Las Vegas.
The company continues to invest in its regional footprint, including maintenance, facility upgrades, and service enhancements, all intended to maintain competitiveness and capture share in local gaming markets.
On the capital front, Caesars ended the quarter with approximately $884m in cash and cash equivalents, in addition to $125m in restricted cash.
Total outstanding debt stood at $12.3bn. Management reiterated its focus on deleveraging and improving the company’s balance sheet.
Notably, Caesars added that it repurchased $100m of common stock in April at an average price of $23.84 per share, signalling confidence in its valuation and long-term outlook.
The company also anticipates reduced capital expenditures and lower interest expenses in the coming quarters, which are expected to support improved free cash flow.
The first-quarter results led to a modest rise in the company’s stock price during after-hours trading, reflecting investor optimism about the ongoing recovery in digital operations and the continued strength of the core business.
Caesars maintained its guidance for the full year, projecting continued growth in digital profitability and stable performance in traditional gaming segments.