Caesars Entertainment published second-quarter results without its usual earnings call. The company is waiting for the $17.6bn Fertitta Entertainment acquisition to close and no longer explains the numbers publicly.
Revenue rose 3% to $2.99bn, slightly above the $2.96–2.97bn consensus. Net loss narrowed from $82m to $62m. But adjusted EBITDA fell 3.7% to $920m, around 4% below the $963m analyst estimate. That miss is the only real problem in the report.
Las Vegas collapsed: revenue down 3.5% to $1.01bn, EBITDA down 12.6% to $410m. Table hold dropped to 16.6%, the worst since late 2022. Drop fell 5%, room occupancy declined 130 basis points to 95.5%. The regional segment carried the quarter: revenue up 9.4% to $1.57bn, EBITDA up 11.2% to $488m. Much of that growth is inorganic — the Caesars Windsor acquisition closed in March and now sits in the regional segment. Digital revenue grew 2.3% to $351m, but EBITDA dropped 15% to $68m on higher marketing and acquisition costs. First-half digital EBITDA came in at $137m; the company is clearly not reaching its $500m full-year target.
The Tilman Fertitta deal values Caesars at $31 per share: $5.7bn equity plus $11.9bn debt. The 45-day go-shop window closed 11 July with no competing bids. Nevada regulators approved Fertitta in July; full close is expected in the first or second quarter of 2027. The stock trades at $29.95. The 3.4% spread reflects regulatory risk and time to completion. Caesars' real problem is not cash generation — $920m quarterly EBITDA is fine — but the $11.8bn debt load. Interest expense of $573m exceeds operating income of $513m.
