Caesars Acquisition Company (CACQ) reported strong online gains in what could be the final quarterly report to feature contributions from its highly profitable social gaming unit.
On Tuesday, CACQ – which includes Caesars Interactive Entertainment (CIE) and several brick-and-mortar casinos – reported revenue rising nearly 17% to $673.6m in the three months ending June 30. The gain was driven primarily by CIE, which reported revenue up more than one-third to $249.4m.
Despite the revenue gain, operating income fell 8.2% to $90.3m and profits were down 34.3% to $24.3m. The company blamed “increased stock-based compensation expense at CIE” and increases in interest expenses and provisions for income taxes.
CACQ sold its Playtika social and mobile gaming division to a Chinese consortium over the weekend for $4.4b, which will have a dramatic effect on future earnings reports when the deal closes sometime in Q3 or Q4.