News Formal

Eldorado and Caesars cost cutting is boosting profits at regional casinos as merger close nears

  • 📰 CNBC
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Eldorado and Caesars have released documents estimating the financial performance of their regional casino properties since reopening. Because of aggressive cost-management, they have been able to improve margins by 1000-1200 basis points, year over year- improving EBITDA in spite of flat or lagging revenues, compared to the same period year over year. It's an ongoing theme for the casino industry - taking out big costs, and keeping unprofitable parts of the business closed.

inch closer to merging with one another, tight controls on costs are helping to make the companies' regional casinos more profitable.

Eldorado shares were recently trading nearly 5%. The stock, which has a $3.1 billion, market cap, is down more than 31% since January. Caesars Entertainment, which has a market value of $8.3 billion, has seen its shares tumble 11% year to date. Caesars shares were up more than 2% in trading Tuesday. Marketing is limited now, targeted mostly to loyal customers who are high spenders. With capacity limits in place, casinos need to make sure their best customers have a place at the table.

Caesars has reopened three Las Vegas strip resorts, Caesars Palace, Harrah's and Flamingo, as well as its properties in Lake Tahoe and Laughlin. But its Nevada numbers don't at all mirror the success of its regional casinos. Revenue is down as much as 58% year over year and EBITDA has declined with it, down 70% to 80%.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

BoycottChineseProduct

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Morgan Stanley says US stocks will soar 10% by mid-2021 as V-shaped economic recovery boosts profit growth | Markets InsiderMorgan Stanley on Monday updated its base case for S&P 500 growth through June 2021, citing a swift economic recovery.  The bank raised... if you guess enough... Morgan Stanley Sees U.S. as a Laggard in 2020 Across Markets, November 17, 2019, Morgan Stanley releases new forecast showing U.S. economy may drop as much as 38%, April 3, 2020 Morgan Stanley Makes Bold Prediction That the Market Low Is In April 7, 2020
Source: BusinessInsider - 🏆 729. / 51 Read more »