Group revenue for the 12 months through to 31 December 2024 reached $11.2 billion (£8.89 billion/€10.71 billion). This represented a 2.5% decrease from the previous year, according to data published yesterday by Caesars.
Caesars attributed this decline primarily to its Las Vegas and regional segments, both of which experienced downturns in 2024. Managed and branded revenue also fell, though there was some positive news from the digital segment.
Revenue from the digital business, which includes igaming and online sports betting, rose by 19.5%. This continues an upward trend observed in recent years, although the growth was not as significant as in 2023 (77.6%).
## Caesars: Digital EBITDA to Reach $500 Million in 2025
Despite the slower digital growth compared to other recent years, Caesars remained confident about its long-term earnings goals.
In May 2023, Caesars stated a digital EBITDA target of $500 million within two years. Now, CEO Tom Reeg announced in an earnings call that this target is expected to be met by the end of 2025.
For context, digital adjusted EBITDA in 2024 amounted to $117 million, a significant increase of 207.9% from the $38 million recorded in 2023.
“I’d expect you’re going to start seeing the best quarters we’ve ever posted shortly,” Reeg said. “And all of our targets remain the same. Recall that we laid out our targets before we even launched Caesar Sports, aiming to reach $500 million of EBITDA.
“We’re well on that path. The remaining piece at the end of 2025 will be the expiration of some major partnership contracts at the beginning of 2026. Then I’d expect we’d reach our targets. Recall those targets have not moved since they were initially laid out almost four years ago.”
## High Hopes Remain for Regional, Las Vegas
Regional properties, the group’s largest source of revenue, saw a 4.1% decline in revenue to $5.54 billion last year. Reeg noted, however, that this segment continues to improve, with a “solid and stable” customer base.
This division is likely to benefit from the completion of the Caesars New Orleans expansion in October and the opening of Caesars Virginia in December. Reeg stated these developments position the regional segment for better performance in 2025 and beyond.
In Las Vegas, revenue fell by 1.5% year-on-year to $1.34 billion. Caesars attributed this partially to a challenging comparative year, as 2023 included the city’s first Formula 1 race.
Again, Reeg highlighted a steady customer base for this segment and mentioned the addition of several amenities expected to support future business growth.
“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’ve still got returns from our hotel projects. We celebrate an anniversary with the opening of the balcony rooms at Versailles. So, we feel very good about what 2025 looks like.”
In 2024, $274 million came from managed and branded operations, a decline of 10.8%. Additionally, $5 million was reported in corporate and other losses.
Overall, casino revenue fell by 1.6% to $6.27 billion. Hotel revenue decreased by 3.5% to $2.02 billion, food and beverage revenue dropped by 0.7%, and other revenue declined 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, amounting to $8.94 billion. Other expenses totaled $2.43 billion, resulting in a pre-tax loss of $124 million, which was wider than the $60 million loss recorded in the previous year.
Caesars paid $87 million in taxes, compared to 2023 when it benefited from $888 million in tax relief, and also 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 contrast to a $786 million profit in 2023. Adjusted EBITDA was also 4.6% lower year-on-year at $3.72 billion.
## What Happened in Q4?
In the final quarter of 2024, total revenue was 0.9% lower at $2.8 billion.
The results were consistent with trends observed in both the regional and Las Vegas businesses. However, digital revenue was also marginally lower due to…