Caesars Entertainment Inc. will be holding on to all of its Las Vegas properties, and won’t be spinning off its digital unit as a standalone company just yet. Those are the two main takeaways from the company’s recent Q3 earnings call to investors, which took place earlier this week.
Earlier in 2022, company officials had floated the idea that they might unload one of their Las Vegas properties in an effort to bring down the company’s debt load. That idea, it turns out, was totally unnecessary thanks to the booming state of the US gaming industry.
Company CEO Tom Reeg addressed this issue on the earnings call saying, “I’d also like to touch on the strip asset sale and say that we intend to keep all of our trip assets as we move forward. We ran into a market where the cash flow of the asset continued to increase the ability of buyers to raise financing, making it a very easy decision for us to keep.”
This is and was a discretionary process for us, it created an unnecessary overhang in the stock. And I apologize to all of our shareholders for that. That was a self-inflicted error and that was me. So, we will be keeping our Vegas Strip assets as we move forward,” he added.
Reeg also told investors that he’s planning on keeping the company intact and not spinning off the digital unit anytime soon thanks to its robust health. “So, we feel very, very good about where we’re at. This is what we’ve done on the brick-and-mortar side is figure out how to invest more in your best customers and less in your less profitable customers, and that’s really the basic blocking and tackling that we’re doing in Digital that has led to these results.
In short, anyone with Caesars Entertainment in their portfolio is in pretty good shape for the foreseeable future.