Caesars Entertainment Corp. (CEC) reported a widened net loss of US$2.0 billion for the second quarter of 2016, compared to a net loss of $50 million in 15Q2.
According to a filing from the operator on Wednesday, the increased loss was “largely driven by an accrual of $2.0 billion related to the restructuring of Caesars Entertainment Operating Company (CEOC) and a year-over-year increase in stock-based compensation at Caesars Interactive Entertainment (CIE) due to fair value estimates.”
Net revenues for CEC increased 7.8 percent year-on-year to $1.2 billion primarily attributable to CIE’s social and mobile games business and growth in hospitality revenues in Las Vegas.
“We delivered solid operating performance in the second quarter, including an 8 percent increase in net revenue and strong income and margin results,” said Mark Frissora, president and chief executive officer of Caesars Entertainment.
“Our second-quarter performance was driven by strong results in Las Vegas lodging, exemplified by a 6.5 percent increase in RevPAR, as well as entertainment and continued strength in the social and mobile games business.”
“Additionally, our productivity efforts have improved our revenue per employee and marketing efficiency, as we drive further margin improvement and cash flow while maintaining high levels of employee and customer satisfaction,” he said.
Earlier this week, Caesars Entertainment Corp. (CEC) confirmed the sale of its mobile and social gaming asset Playtika Studios to a Chinese consortium that includes Giant Interactive Group, in a US$4.4 billion all-cash deal.
Playtika operates leading social casino games including Slotomania, which had been acquired by CEC in May 2011 for $100 million as the casino operator set-up its interactive gaming division. CEC governance confirmed that no other CIE assets would be sold in the transaction.