Caesars Entertainment Corporation (CZR) posted a net loss of US$435 million in the fourth quarter of 2016, due mainly to accruals related to the restructuring of its subsidiary.
The Las Vegas-based company noted net revenues for its continued operations, or Continuing CEC, increased 3 percent year-on-year to $949 million in 16Q4, while adjusted EBITDA for continuing CEC grew 10.6 percent year-on-year to $250 million in the quarter.
Net loss for Continuing CEC, before including the effect of noncontrolling interest, was $435 million in 16Q4, compared to a net loss of $39 million in 15Q4. The company said this was due mainly to a $426 million accrual related to the restructuring of Caesars Entertainment Operating Company, Inc. (CEOC) in 2016.
The restructuring also made a mark on its full year results, with continuing CEC reporting a full-year net loss of $2.7 billion due to $5.7 billion of accruals in 2016.
The company, however, said this was partially offset by a gain of $4.2 billion on the sale of Caesars Interactive Entertainment’s social and mobiles games business in the year.
Adjusted EBITDA for Continuing CEC increased 8.6 percent to $1.1 billion, which was driven by net revenue increases and efficiency initiatives, it said.
“Caesars Entertainment delivered a second consecutive year of solid operational improvement and margin expansion driven by strong performance in Las Vegas, our largest market, and continued productivity improvements,” said Mark Frissora, president and chief executive officer of Caesars Entertainment.
“We also generated record full year cash hotel revenues as we renovated over 8,000 rooms domestically since 2014. This year, we intend to deliver additional cash flow and margin improvements while completing CEOC’s restructuring. These actions will allow us to continue to generate more value for our stakeholders as we execute against our long-term plan,” he added.