LAS VEGAS , Feb. 23, 2016 — Caesars Entertainment Corporation ( NASDAQ : CZR) today reported fourth quarter and full-year 2015 results as summarized in the discussion below, which highlights certain GAAP and non-GAAP financial measures on a consolidated basis.
Fourth Quarter and Full-Year Highlights
- Quarterly net revenues for Continuing CEC increased 8.7% year-over-year to $1.1 billion and full-year net revenues increased 14.7% year-over-year to $4.5 billion driven by strength in hospitality offerings as well as positive performance in CIE's social and mobile games business.
- Quarterly adjusted EBITDA for Continuing CEC grew 51.7% year-over-year to $305 million and full-year adjusted EBITDA grew 46.1% year-over-year to $1.3 billion primarily driven by net revenue increases, marketing and operational efficiencies, and improved hotel customer mix.
- Cash ADR in Las Vegas improved significantly year-over-year, up 13.6% in the quarter and 12.0% for the full-year, driven by improved pricing power as a result of the recapitalization of room product, increased resort fees, and higher group room revenues.
- Quarterly net revenues for CIE increased 33.3% year-over-year to $208 million and full-year net revenues increased 30.5% year-over-year to $766 million, while adjusted EBITDA grew 67.4% and 62.6% year-over-year for the quarter and the full-year, respectively. CIE has continued to experience strong organic growth in social and mobile games due to the focus on increasing monthly unique paying users and the monetization of those users.
"Caesars achieved solid operating momentum throughout 2015. Including CEOC's results, the enterprise experienced its best full-year of operating results since 2007," said Mark Frissora, President and CEO of Caesars Entertainment. "These results largely reflect higher hotel revenues, with cash ADR up double-digits, and increased marketing and operational efficiencies, which delivered approximately $350 million in incremental EBITDA enterprise-wide year-over-year."
"The ability to generate this level of sustained growth is a testament to the success of our low-cost, high-quality operating model. We remain focused on executing a balanced agenda of enhancing revenue growth while driving productivity gains to improve margins and cash flow, while increasing long-term value for our stakeholders," Frissora concluded.
Summary Financial Data
Effective January 15, 2015, CEC deconsolidated CEOC subsequent to its voluntarily filing for reorganization under Chapter 11 of the United States Bankruptcy Code. As such, all amounts presented in this earnings release exclude the operating results of CEOC subsequent to January 15, 2015. Prior period results have not been recast to reflect the deconsolidation of CEOC.
Because CEOC operating results for 2015 are not comparable with 2014 as a result of CEOC's deconsolidation, the analysis of our operating results in this release will include discussion of the components that remain in the consolidated CEC entity subsequent to the deconsolidation of CEOC. In the table below, "Continuing CEC" represents CERP, CGP Casinos, CIE, other non-operating subsidiaries and associated parent company and elimination adjustments that represent the Caesars structure as of December 31, 2015, and for periods subsequent to the deconsolidation of CEOC.
Supplemental materials have been posted on the Caesars Entertainment Investor Relations website at http://investor.caesars.com/financials.cfm.
In August 2015, the Company announced that it had secured the support of CEOC's largest and most senior creditor constituencies, representing holders of more than 80% of CEOC's First Lien Bank Debt and First Lien Notes. The following results include Caesars Entertainment's accrual of $52 million and $1 billion of commitments to the First-Lien RSAs related to the restructuring of CEOC for the fourth quarter and year ended December 31, 2015, respectively.
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