Casino operator Caesars Entertainment Corporation (CEC) lost over $2b in the second quarter of 2016 thanks to the restructuring of its bankrupt main unit.
As has been the case for the past 18 months, CEC’s numbers are irrevocably tangled given the unresolved bankruptcy of its main unit Caesars Entertainment Operating Co (CEOC). As such, the phantom entity known as ‘Continuing CEC’ no longer factors in contributions from CEOC’s 35 casino properties.
For the three months ending June 30, CEC reported revenue up 7.8% to $1.2b, while operating income fell 11.8% to $164m. Actual property earnings were down 4.6% to $335m while adjusted earnings rose 11.8% to $388m.
CEC credited the revenue gain to another stellar performance by its Caesars Interactive Entertainment (CIE) division, although this may be the last time CIE is a significant contributor to CEC’s earnings following the sale of its Playtika social and mobile gaming operation.