Caesars Entertainment recorded strong operational performance in the fourth quarter of 2019 but swung to a net loss of $304 million due to a change in the fair value of one of its key financial instruments.
During the quarter, Caesar’s net revenue increased 2.6 percent to $2.2 billion, driven by growth in all business verticals, with significant growth in Las Vegas due to healthy consumer demand and a higher cash customer mix.
As a result, income from operations increased 77 percent to $177 million. This was further boosted by a decrease in operating expenses in the quarter.
“Caesars Entertainment delivered another quarter of solid operational performance,” said Tony Rodio, president and CEO of Caesars Entertainment.
“Caesars’ results were largely driven by the strong demand at our Las Vegas properties, excellent cost controls, and the addition of sports betting in several states which drove increased visitation. In addition, our focus on costs and operating efficiencies across the company contributed to the excellent performance,” he added.
The company, however, recorded a net loss attributable to Caesars, which fell by $502 million to $304 million due to an increase in a loss relating to the change in the fair value of the derivative liability related to the conversion option of CEC’s 5.00% convertible senior notes maturing in 2024.