Group revenue for the 12 months through to 31 December 2024 reached $11.2 billion (£8.89 billion/€10.71 billion), marking a 2.5% decrease compared to the previous year, according to data released by Caesars.
Caesars attributed this primarily to declines in its Las Vegas and regional segments. Both divisions saw decreases in 2024, and managed and branded revenue also fell, although there was positive news from the digital segment.
Revenue from the digital business, which includes igaming and online sports betting, rose by 19.5%. This continued an upward trend seen in recent years, though not as steep as the 77.6% increase observed in 2023.
## Caesars: Digital EBITDA to reach $500 million in 2025
While digital growth was not as dramatic as in recent years, Caesars expressed confidence in its long-term earnings goals.
In May 2023, Caesars set a digital EBITDA target of $500 million within two years. Now, CEO Tom Reeg stated in an earnings call that this goal is expected to be achieved by the end of 2025.
For context, digital adjusted EBITDA in 2024 was $117 million, a 207.9% increase from the $38 million posted in 2023.
“I’d expect you’re going to start seeing the best quarters we’ve ever posted to date shortly,” Reeg said. “And all of our targets remain the same. Recall that we laid out our targets before we even launched Caesars Sports, aiming to reach $500 million of EBITDA.
“We’re well on that path. By the end of 2025, the completion of some significant partnership contracts in early 2026 should help us meet our targets. These targets haven’t changed since they were initially set out nearly four years ago,” he added.
## High hopes remain for regional, Las Vegas
Regional properties, the group’s largest source of revenue, saw a 4.1% drop in revenue to $5.54 billion last year. Reeg noted that this segment continues to improve, with a “solid and stable” customer base.
The division will likely benefit from the completion of the Caesars New Orleans expansion in October and the opening of Caesars Virginia in December. Reeg indicated these developments set up the regional segment for improved performance in 2025 and subsequent years.
Regarding Las Vegas, revenue declined by 1.5% year-on-year to $1.34 billion. Caesars attributed this in part to a challenging comparison year, as 2023 saw the city host its first Formula 1 race.
However, Reeg pointed out a steady customer base for this segment and mentioned the addition of several amenities expected to support business moving forward.
“We opened Gordon Ramsay’s Burger and Pinky’s at Flamingo, activating the Strip frontage at Flamingo for the first time since we’ve owned Caesars,” he said. “We opened Caramella’s at Planet Hollywood. A number of food and beverage offerings have come online.
“We’re still seeing returns from our hotel projects. We have an anniversary for the balcony rooms at Versailles opening. Overall, we feel very good about what 2025 looks like,” he concluded.
In 2024, $274 million came from managed and branded operations, a decrease of 10.8%. A further $5 million was reported in corporate and other losses.
Overall, casino revenue was down 1.6% at $6.27 billion. Hotel revenue dropped by 3.5% to $2.02 billion, food and beverage revenue fell by 0.7%, and other revenue decreased by 7.2% to $1.25 billion.
## Net loss hits $278 million
In terms of spending, total operational costs were 1.3% lower for the year at $8.94 billion. Other expenses exceeded $2.43 billion, resulting in a pre-tax loss of $124 million, which was wider than the $60 million loss of the previous year.
Caesars paid $87 million in tax, compared to 2023 when it took $888 million in benefits, and accounted for $67 million in losses from non-controlling interests.
As a result, the company ended 2024 with a net loss of $278 million, in stark contrast to a $786 million profit in 2023. Adjusted EBITDA also decreased by 4.6% year-on-year, totaling $3.72 billion.
## What happened in Q4?
For the fourth quarter of 2024, total revenue decreased by 0.9% to $2.8 billion.
The results continued to reflect similar trends for both the regional and Las Vegas businesses. However, digital revenue also saw a slight decline due to…