Ahead of next month's quarterly earnings call, Caesars Entertainment released pre-earnings estimates last week during a pivotal period for the casino conglomerate.
Following November's inaugural Formula One Grand Prix, Sin City will host the Super Bowl in February for the first time in history. As with its main rivals on the Las Vegas Strip, Caesars should benefit from heightened table volume and increased room rates throughout Super Bowl week. On the sports betting side, Caesars Sportsbook is facing competition from a pair of prominent newcomers in ESPN BET and Fanatics Sportsbook.
For the quarter, Caesars Digital projects 2023 fourth-quarter net revenues ranging between $303 million and $305 million. At the lower end of the guidance, the projections represent a 27% increase from the same quarter a year earlier. Caesars' online segment also projects a net loss between $7 million and $9 million, the company indicated in the preliminary earnings release. One factor for the negative quarter appears to be driven by adverse sports outcomes for the three-month period ended January 31, 2023.
Despite the unfavorable outcomes, Caesars is projecting improved results compared to the fourth quarter of 2022, when the division reported net losses of $35 million.