Caesars Entertainment reported Q2 results showing Las Vegas revenue down 3.5% year-on-year, from $1.054 billion to $1.017 billion. Overall revenue rose 3% on the back of regional casinos and the digital segment.
The Vegas decline reflects shrinking visitor traffic. June saw visitor numbers drop 0.5%, while gaming revenue on the Strip fell 1.39%. Adjusted EBITDA from Vegas properties slid from $469 million to $410 million, down 12.6%. Regional casinos offset the shortfall, bringing in $1.57 billion, up 9.4% on the prior quarter.
Caesars Digital continues to grow, but at a slower pace. Revenue climbed 2.3%, from $343 million to $351 million. For comparison: Q4 last year saw 38% growth, Q1 this year 11.6%, reaching $374 million.
The company is preparing for a change of ownership. Fertitta Entertainment is acquiring Caesars for $17.9 billion. Last week the Nevada Gaming Commission unanimously approved licence amendments. Caesars will delist from NASDAQ and become privately held. The deal prompted the company to cancel its earnings call.
Vegas is weakening across the board. Nevada Gaming Control Board recorded Strip casino net income down 81% year-on-year. Total visitor traffic for the year rose just 0.2%, though convention attendance jumped 25.8% to 471,000. Mass-market tourists are avoiding the Strip due to pricing, and business visitors are not filling the gaming revenue gap.
