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Caesars Entertainment mulls over AC weakness

  • Execs with Caesars Entertainment (CZR) tipped off during the firm's earnings call that the company is considering closing Atlantic City casinos.
  • Revenue fell off 14% for the company's Atlantic Coast properties in Q1. Demand in Atlantic City was weak due to overcapacity in the region.
  • "All the businesses in A.C. are under tremendous pressure," said CEO Gary Loveman.
  • Earnings call transcript
Comments (5)
  • phillipb115
    , contributor
    Comments (13) | Send Message
     
    Their cash will be better spent in Asia.
    8 May, 09:28 AM Reply Like
  • jakedanders
    , contributor
    Comments (8) | Send Message
     
    What cash?
    8 May, 12:45 PM Reply Like
  • phillipb115
    , contributor
    Comments (13) | Send Message
     
    Haha. All these new entities with all this debt makes me wonder wtf.
    8 May, 01:46 PM Reply Like
  • casinomastery@gmail.com
    , contributor
    Comments (58) | Send Message
     
    Majority of their properties in overbuilt, mature gaming markets in US facing over expansion of capacity issues. They have no Asian footprint yet. All AC casino properties sagging under weight of competitive pressures from PA and NY. Genting gaining approval yesterday to develop property in LV strip (Echelon site) and their management telling regulators they plan to heavily market international business does not auger well for Caesars or any other strip property with strong Asian high end business plus additional capacity at the mega property they envision will also impact mass slot business for entire strip. Caesars key strategy to shed properties,
    slim down domestically, restructure debt long overdue but welcome notheless because at bottom its a great brand that will prevail.
    8 May, 12:46 PM Reply Like
  • texnewmex
    , contributor
    Comments (2) | Send Message
     
    to make matters worse, their properties in LV look tired & worn. MGM is doing a much better job than CZR.
    12 May, 09:48 PM Reply Like
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