Casino operator Caesars Entertainment lost over three-quarters of a billion dollars in the third quarter due to restructuring costs involving its bankrupt main unit.
On Monday, Caesars Entertainment Corporation (CEC) reported losing $756m in the three months ending Sept. 30, a far cry from the $15m profit CEC reported in Q2. Revenue was up 12.4% to $1.14b and earnings rose 46% to $311m but the company’s ongoing efforts to reinvent itself drowned all that black ink in a sea of red.
CEC stopped reporting contributions from its main unit, Caesars Entertainment Operating Co (CEOC), since the unit filed for bankruptcy in January. But CEC still had to make payments of $966m in Q3 related to CEOC’s restructuring efforts, which is a nice way of saying it’s been throwing cash at CEOC’s first-lien creditors in a bid to keep them happy while continuing to treat second-lien creditors much like countries not named Germany treat Syrian refugees.
This nearly $1b in bribes undid a generally positive quarter, which included a continued strong showing by Caesars interactive Entertainment. Gaming revenue was up $56m to $535m thanks to a higher overall hold percentage and a full quarter’s contribution from Horseshoe Baltimore, which opened in August 2014.
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