Caesars Entertainment fell short of market expectations for first-quarter results on Tuesday. Despite record levels of occupancy due to the Super Bowl and the Chinese New Year, the company’s Las Vegas segment saw low table hold, leading to a decrease in overall performance. This caused shares of the company to decline by about 3% in extended trading.
While there was a significant influx of visitors in Las Vegas during the Super Bowl, Caesars reported a decline in its non-gaming segments like dining and retail, as well as its gaming operations. CEO Tom Reeg noted that Caesars Digital did experience strong revenue growth, despite lower-than-expected results in online sports betting.
The company, which operates properties like Caesars Atlantic City and Caesars Palace, has seen a shift in consumer spending towards services. However, profit from U.S. properties, including those in Las Vegas, has decreased from previous highs due to increased expenses on food and beverages, as well as hotel operations.
Profitability was also impacted by unfavorable winter weather in the first two months of the year in the regional segment. Caesars reported a loss of $0.73 per share, significantly higher than analysts’ expectations of a per share loss of $0.07. Revenue for the quarter was $2.74 billion, falling short of the expected $2.84 billion.