Caesars Digital Reports Record Profits for Q2 2023

Caesars Digital has reported strong financial results for the second quarter of 2023, with the operator generating $216 million (19.8 billion rubles) in revenue over the three-month period. This marks a 42% increase compared to the previous year, while casino profits rose by $80 million (7.3 billion rubles).
Eric Hession, President of Caesars Sports and Online Gaming, stated, "In the second quarter of 2023, we achieved another significant improvement in our digital segment compared to last year. This is a record result since the rebranding to Caesars Sportsbook at the end of 2021. During the quarter, sports betting volume increased by 180 basis points compared to the prior period, and casino profits grew by 27%."
The operator attributed the revenue growth to the effectiveness of targeted advertising investments and a lower marketing spend among both its existing customer base and users in other states. Hession noted, "It was challenging to engage with customers when they had to launch the sports betting app each time to access the casino."
Additionally, a series of technical enhancements are expected to drive further growth in the segment, the first of which is the introduction of a standalone gaming product under the Caesars Palace brand. This product has already launched in several states and is awaiting regulatory approval in others. This, in turn, is expected to lead to significant product improvements and expanded marketing opportunities, alongside the benefits of the group's rewards program.
Expressing optimism about this development, Hession added, "Finally, we will have a product that we can leverage with our existing database. This will allow us to transition customers we know and who are loyal to the Caesars rewards program into the online casino."
Caesars has also migrated its namesake app in Nevada to the Liberty technology platform, acquired as part of the William Hill purchase, and has begun rolling out its proprietary Sportsbook software for iOS, which is expected to achieve 100% adoption by August. The company plans to implement an innovative player account management system across all states by the end of this year.
Overall, the group's revenue for the quarter increased by 2.1%, with net income reaching $920 million (84.4 billion rubles), compared to a loss of $123 million (11.2 billion rubles) in 2022. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at $1 billion (91.78 billion rubles), up 3%.
Anthony Carano, President and CEO, highlighted strong operational trends in the land-based segment compared to the same period last year. In the Las Vegas segment, revenue and EBITDA decreased by 1.2% and 6.4%, respectively, to $1.12 billion (102.79 billion rubles) and $512 million (47 billion rubles). However, Carano noted that this was the second-best adjusted EBITDA performance for the second quarter.
Regionally, revenue growth was less than one percentage point, reaching $1.46 billion (134 billion rubles), with an EBITDA of $508 million (46.6 billion rubles).
"We were pleased to open two new temporary locations this quarter in Danville, Virginia, and Columbus, Nebraska, driven by strong customer demand. Despite facing new competition in some markets during the quarter, consumer demand trends remain stable and consistent with previous periods. Our major projects continue to deliver solid profits," Carano commented.
Year-to-date, the group's revenue has increased by 11.8% to $5.7 billion (523 billion rubles), with net income reaching $784 million (72 billion rubles) and EBITDA rising by 54.2% to $1.96 billion (180 billion rubles).
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