Caesars Entertainment Reveals Second-Quarter Financial Operational Data
Caesars Entertainment Strengthens Financial Position with Digital Growth
In a significant move to bolster its financial health, Caesars Entertainment has been actively managing its debt and investing in digital initiatives. The company's strong liquidity position supports ongoing investment in digital enhancements across its land-based properties.
In July, Caesars' Chief Financial Officer Bret Yunker completed a refinancing transaction, lowering annual borrowing costs. This move is expected to reduce annual interest expenses by $44 million. The company used $225 million from the monetization of its WSOP seller note and a draw from its revolving credit facility to fully redeem $546 million of its 8.125% senior unsecured notes due in 2027.
As of June 30, 2025, Caesars Entertainment had $12.3 billion in total debt outstanding with $982 million in cash and cash equivalents, resulting in a net debt of approximately $11.29 billion. This is slightly down from $11.43 billion at the end of 2024.
The company's digital segment, a key driver for improving debt-to-EBITDA ratios, has been growing significantly. The Caesars Digital segment posted revenue of $343 million, marking a 24.3% rise from $276 million in Q2 2024. The ongoing expansion in regulated US sports betting and iGaming markets contributed to the increase in Adjusted EBITDA for the digital segment, which doubled year-over-year.
Caesars Entertainment CEO Tom Reeg stated that the Caesars Digital segment delivered one of its strongest quarters to date. The growth in the digital segment was supported by the operator's strategic use of its Caesars Rewards member database to drive customer acquisition and retention across its online channels.
In Nevada, Caesars introduced a universal digital wallet and an in-house player account management system. However, the company's land-based hospitality operations in Las Vegas saw softer results.
Despite the challenges in the land-based hospitality sector, Caesars reported total net revenue of $2.9 billion for the quarter, reflecting a 2.9% increase on a comparable basis from the previous year. The company's total available liquidity reached $3.08 billion, including cash on hand and unused capacity under its revolving credit facilities.
Caesars' management is focused on using free cash flow to reduce debt further and repurchase stock opportunistically. The company’s weighted average cost of debt is about 6.35%. With a strong digital segment and a strategic approach to debt management, Caesars Entertainment is making strides towards improving its financial health.
In light of Caesars Entertainment's increased focus on digital growth, the company's CEO, Tom Reeg, highlighted the Caesars Digital segment's significant expansion in the regulated US sports betting and iGaming markets, as it contributed to a 24.3% rise in revenue from Q2 2024.
The ongoing success in sports betting, a crucial part of the Caesars Digital segment, is indicative of the company's strategic approach to digital initiatives, aiming to bolster its financial health.
