Caesars Entertainment net loss surpassed what analysts predicted by nearly ten times more!
According to Caesars Entertainment Corp management, 2016-2017 net loss was far beyond what analysts would imagine. They say that although they had predicted losses, what came at the end of the year was more than what anybody with inflation experience could fathom. We spoke about the Caesars’ Entertainment Restructuring Deal In Jeopardy After Lenders Threaten To Terminate Support in this article.
When compared with the loss that the gaming company incurred in 2015, $435 million is such a huge sum of money a reputable gaming company could lose. In the last three months of 2015, Caesars Entertainment had recorded a loss of $39 million, which was considered much then. Did Caesars Entertainment Corporation end up Settling Lawsuit With Creditors?
However, the management asserts that most of the losses were incurred because of the $426 million that was used in the restructuring and the revitalizing of their operating unit, which was almost bankrupt.
On what has been seen as a way to stand from the mud slides, Mark Fissora, Caesars CEO has said that now the gaming company is able to stand on its feet to and that soon, it will be laying strategies that will help it make real money online casino gambling sites thus generate reasonable revenue.
Earlier, FactSet, the polling company that conducted the analysis had indicated that Caesars would incur a loss, but what they thought was far much below.
In fact, FactSet had indicated that Caesars’ share would incur a loss of only 37 cents.
Unfortunately, the loss turned out to be $3.88 for each share. The over $3 loss per share is such a big loss!
In aggregate, CEOC paid $5.7 billion in accruals and the net operating losses accumulated to $2.7 billion.
The Bright Side
Caesars is not known to have complaints. The resort’s management has a history of being optimistic, something that has kept Caesars Entertainment focused in spite of the stiff challenges and the losses over the years.
“We should be positive. Generally, we are grateful that for two years in a row, we have been able to expand our margins, improved our operations, which have proved solid, and have recorded continued productivity thanks to high performance that has been witnessed in Las Vegas,” said Caesars’ CEO Mark Fissora.
The CEO added that the gaming company had every reason to be delighted because for the past three years, Caesars management has been able to renovate over 8, 000.
The renovated rooms, most of which were fully booked throughout the year had very good revenue collected.
Just last month, a Chicago judge ruled a bankruptcy case in favor of the gaming company. To Fissora, this alone is a clear indication that Caesars is on its way to be one of the biggest gaming companies that will record higher revenue collections in years to come.
Now Is The Time To Deliver
Because the bankruptcy case is over, CEOC believes that it is the time to work smart. With the support of the parent company, Caesars Entertainment, CEOC is optimistic that soon, it will beat the rest that have had a smooth sail when the subsidiary was battling with creditors.
“We will deliver additional flow of cash and margin improvements. At the same time, we will be working towards restructuring CEOC,” Fissora said.