Caesars Entertainment, which operates Caesars Palace in Las Vegas, reported adjusted earnings and revenue that topped analysts’ expectations. As a result, shares of the company were up nearly 4% on Wednesday and over 12% in the past three months.
Caesars Entertainment, Inc. stock was higher Wednesday after the casino operator posted a strong quarter.
Caesars Entertainment, Inc. (CZR) stock was up Wednesday after the casino operator posted strong quarterly results.
Revenue for the quarter came in at $2.33 billion, up from $2.15 billion in the same period a year ago. Net income attributable to Caesars was $40 million, or $0.17 per share, compared to a loss of $4 million, or $0.02 per share, in the year-ago quarter.
Adjusted EBITDA rose 8% to $746 million, beating analysts’ expectations of $727 million.
“We are pleased to report another strong quarter of results with Adjusted EBITDA growth of 8% versus the prior year,” said Mark Frissora, President and CEO of Caesars Entertainment. “Our business continues to benefit from our diversified portfolio and our focus on delivering an exceptional guest experience.”
The company’s Las Vegas properties performed exceptionally well in the quarter, with Adjusted EBITDA rising 16% to $402 million. Caesars also saw strong growth in its online gaming business, which posted an Adjusted EBITDA of $41 million, up from just $5 million a year ago.
The competitors are DraftKings and FanDuel.
Both companies offer online sports betting, and both have been quite successful. However, there are some differences between the two.
For one, FanDuel is much larger than DraftKings. It is the largest daily fantasy sports site in the United States. This gives it a lot more visibility, and it also means that it has more resources.
DraftKings is smaller than FanDuel, but it is increasing. It is currently the second-largest daily fantasy sports site in the U.S. and is available in more states than FanDuel.
Another difference is that DraftKings offers a broader variety of games than FanDuel. This includes traditional sports like football and basketball, as well as less popular ones like golf and NASCAR.
FanDuel also offers a broader variety of games, but its focus is on the major leagues like the NFL and NBA.
Finally, DraftKings has been around longer than FanDuel. It was founded in 2012, while FanDuel was founded in 2009.
A strong quarter in digital sports betting could be a good sign for DraftKings.
After posting strong quarterly results, Caesars Entertainment stock grew Wednesday. The casino operator reported better-than-expected revenue and profit for the fourth quarter of 2018.
Adjusted revenue came in at $2.21 billion, up 3.4% from a year ago and beating analysts’ estimates of $2.20 billion. Adjusted net income was $351 million, or $1.01 per share, compared to the year-ago period when Caesars posted a loss of $205 million, or 61 cents per share.
Digital sports betting could be a significant growth driver for Caesars in 2019. The company launched its online sports betting platform in New Jersey in September and has since rolled it out to Pennsylvania and Indiana. All three states have legalized sports betting since the U.S. Supreme Court struck down a federal ban in May 2018.
With more states expected to legalize sports betting this year, Caesars is well-positioned to capitalize on the growing market. DraftKings, which went public last month, is also benefiting from the boom in legal sports betting. The company announced Wednesday that it generated $320 million in gross gaming revenue from its online and retail sportsbooks in 2018.