Las Vegas casino operator Caesars Entertainment Corp. reported a widened net loss of $524 million in the first quarter of 2017.
In a press release from the operator on Tuesday, the net loss was widened from $274 million in 16Q1, mainly due to a $466 million accrual related to the restructuring of Caesars Entertainment Operating Company, Inc.
Net revenues increased 1.4 percent year-over-year to $963 million, attributed to strong growth in the Las Vegas region due to improved hotel performance.
Adjusted EBITDA grew 5 percent year-on-year to $274 million.
“Caesars Entertainment delivered another quarter of successful execution, highlighted by strong growth in hotel revenues fueled by a double-digit percentage increase in Las Vegas Cash ADR. These gains reflect the positive impact of our investments in property renovations,” said Mark Frissora, president and chief executive officer of Caesars Entertainment. “Rising hotel revenues combined with increased operating efficiency drove higher EBITDA and supported our continued margin expansion. The conclusion of CEOC’s restructuring is on track for the second half of the third quarter and represents an important milestone that will allow us to expand the range of growth opportunities available to us.”
At the end of 17Q1, CEOC successfully priced $1.4 billion of senior secured credit facilities, marking another milestone in the process to complete its restructuring.
“The closing is expected to occur in connection with CEOC’s emergence from bankruptcy in the second half of the third quarter of 2017, subject to a number of conditions,” noted the company in its filing.