Entertainment Caesars ($CZR) plans to refund at least $2 billion in debt over the next 12 months. This assumes a “conservative” selling price for its international William Hill assets.
Speaking to Wall Street analysts on the company’s first-quarter earnings call, executives also noted the return of the Las Vegas Convention Company could play a critical role in the future.
At the time of writing, the actions of CZR$ were trading at $62.83.
Since the beginning of the year, the shares of casino and online gaming companies have decreases of about 26.9%. But it’s not all bad news.
Sale of William Hill’s international assets
Speaking on the sale of William HillChief Financial Officer Bret Yunker said debt repayment could accelerate as the company enters 2022.
“Over the next 12 months, we intend to repay at least $2 billion of debt, and this will accelerate as we move forward into 2022 and seek to divest the strip asset.”
“The debt repayment assumes a prudent sale price for William Hill’s non-US assets with the transaction closing within 12 months.”
The company is on track to sell its William Hill assets to 888 Assets. However, the terms of the agreement have been renegotiated since its Original $2.75 billion Buying price at $2.56 billion.
888 Holdings released its first quarter results on April 21th. During his call, the CEO of 888 Itai Pazner said the company expects the deal with William Hill to be completed by June.
“After reviewing the terms of the transaction for William Hill and completing an equity investment to partially fund the deal, we are on track to close in June and continue to execute on our plan to build a global betting leader. and online games.
Las Vegas Caesars Quarter 1 Call Details
Antoine Caranopresident and chief operating officer of Caesars, told analysts on Tuesday that the company remains optimistic for the remainder of 2022.
“We are very optimistic about the last three quarters of the year in Las Vegas and the return of business and entertainment offerings for groups and conventions which will drive additional demand in the market,” Carano said.
During the call, Carano said total occupancy for Q1 was 63%while weekends at his Las Vegas properties were “sold out for the foreseeable future.”
- Weekend occupancy – 85%
- Midweek occupancy – 52%
Carano noted that the total occupancy was 77% for Marchand April was 84%.
Looking at the company’s regional markets, Carano said revenue was flat, with adjusted EBITA up 69%. For the quarter, Caesars reported a loss of $2.11 per share. As a result, the company also reported revenue of $2.29 billion for the quarter ending March 2022.