An Update from the Earnings Season - Report on Caesars Entertainment

NEW YORK, September 16, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Caesars Entertainment Corporation (NASDAQ: CZR). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/reports?keyword=CZR  

Highlights from our CZR Report include:

• Highlights from Q2 2015 Results - On August 04, 2015, Caesars Entertainment Corporation (CEC) announced results for the second quarter ended June 30, 2015. Net revenues for the continuing CEC grew to $1,141 million, up 17.4% YoY, primarily on account of strong performance at Caesars Interactive Entertainment (CIE), the openings of Horseshoe Baltimore and The Cromwell and the renovation of The LINQ Hotel & Casino. Sustained growth in hospitality amenities in Las Vegas, further contributed to the revenue-growth in Q2 2015. Supported by marketing and operational efficiencies and other EBITDA enhancing initiatives, in Q2 2015 adjusted EBITDA for Continuing CEC grew by 55.6% YoY to $347 million.

• Management's Note - While Commenting on the second quarter results, the Company's President and CEO, Mark Frissora said, "Second quarter performance system-wide was strong, delivering the best quarterly EBITDA margins since 2007." He added, "To support further improvements in profitability, we plan to invest more in our hospitality assets across the system, which generate some of the highest capital returns across the Total Rewards network of properties."

• Caesars Entertainment Resort Properties, LLC (CERP) Performance - Net revenues from CERP surged 5.2% YoY to $566 million in Q2 2015. As reported in the release, Casino revenues were up 6.0% to $299 million led by higher revenues from gaming. Room revenues saw an 8.7% jump to $138 million, while revenue from food & beverages registered a 2.2% rise to $137 million. Meanwhile, income from operations arrived at $126 million in Q2 2015 driven by reduction in operating expenses in the reporting period.

• CGP Casinos & CIE Performance - As per the release, CGP Casinos, which owns and operated six casinos in the US, witnessed 32.6% YoY increase in net revenues to $390 million. The Company attributed this increase to the opening of Cromwell and Horseshoe Baltimore in the second and third quarters of 2014, respectively. Meanwhile, Income from operations stood at $44 million which was driven by increased revenues and improvements in marketing and operational efficiencies. As per the release, CIE showcased a 28.8% YoY growth in net revenue to $186 million in Q2 2015, as a result of strong organic growth in the social and mobile games business. Income from operations for this segment came in at $54 million for the quarter.

To find out how this influences our rating on Caesars Entertainment Corporation, read the full report in its entirety here: http://www.aciassociation.com/reports?keyword=CZR

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