Caesars Entertainment's bankruptcy causes huge losses in Q2
August 04, 2016 23:25
In today’s online casino news, Caesars Entertainment has reported losses of around $2 billion for their Q2 operating period. This is mainly because of the bankruptcy declared by their main operating unit, Caesars Entertainment Operating Co. In the same period last year, the company managed to end up in the healthy green numbers.

However, not everything looks bleak for the company. Its overall revenues are actually up to $1.2 billion, which represents an 8% increase from the previous year. Its casino segment, including jackpot casino slots and online casino roulette, generated around $545 million, which is a 0.4% increase from the same Q2 period last year.

CEO and President Mark Frissora said that the company achieved a solid performance in Q2, looking at its operating results, excluding the impact of the bankruptcy and CIE stock compensation expense.

He went on to explain that the praiseworthy results in Q2 are related to the strong performance of the company’s Las Vegas lodging, as well as its activities on the social and mobile platforms.

The digital segment of the company, Caesars Interactive Entertainment, showed a massive 31.5% profit growth, amounting to $477.2 million in the green. However, similar results in the future are questionable, because a major part of that profit was generated by Playtika, which is in the process of being sold.

Caesars will take Playtika's profits and use them as a financial boost for the newly created merged company, consisting of Caesars Entertainment and Caesars Acquisition Corp. The company will split up into two parts, with the first one being a real estate investment trust controlled by the creditors, and the second one controlling the company's properties.

The new reorganization plan features some vastly improved recoveries. Recently, Reuters reported that an agreement was reached with a minimum of one group of the creditors. The company's reorganization will go through as soon as at least 50.1% of the shareholders sign the agreement.
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