Caesars losses mount on weakness in Atlantic City, regional markets

|About: Caesars Entertainment (CZR)|By:, SA News Editor

Caesars Entertainment (NASDAQ:CZR) -4.9% AH after reporting a widening Q2 loss that more than doubled from the prior-year period, as strong Las Vegas results were offset by continuing weakness in Atlantic City and regional markets.

CZR's casino revenue during Q2 fell 1.9% Y/Y to $1.38B, while the company saw growth in its social and mobile gaming business.

Q2 operating expenses rose 4.5% to $2.08B, and interest expenses rose 21% to $653M.

CZR says expansion, including the opening of Horseshoe Baltimore, and ongoing capital structure initiatives aimed at reducing leverage will help future results.

CZR has enjoyed only one profitable year since 2008 as it has struggled to service $23B of long-term debt incurred in a leverage buyout, amid a drop in gambling in the U.S.