Caesars builds for future as interactive revenues rise 52%
"Significant year" for casino operator sees online revenues hit US$316.6m as New Jersey market share continues to grow
Caesars Interactive Entertainment’s (CIE) rapidly expanding social gaming arm helped it post a year-on-year revenue increase of 52% for the full year ended 31 December 2013, a period which saw it acquire two game development studios and the launch of its real-money platform in New Jersey.
Overall online revenues grew from US$207.7m to $316.6m and while the majority of that derives from its social casino business, CFO Craig Abrahams also highlighted the firm’s month-on-month growth in market share in the Garden State.
“2013 was a significant year for CIE,” he said. “We demonstrated solid economic results in the current year while simultaneously investing and positioning our business for future growth in social, mobile and real-money online gaming.
“On the real-money front, in January, we increased our visibility through advertising and other marketing in New Jersey. We are pleased with the resulting total CIE revenue growth of 49% and increased market share from 32% from December to January, including 888.”
Caesars says it expects the marketing costs and expenses related to its initial launch to continue as it continues to attract new customers, invest in operational infrastructure, and promote its products in Nevada and New Jersey.
“We have made substantial advances in 2013 and in 2014, and will continue to focus on gaining market share, growing the business via acquisitions and increasing user adoption of our mobile and web platforms through technology enhancements and content development,” Abrahams said.
CIE bolstered its social casino business with the acquisition of developer Pacific Interactive last month in a deal thought to be worth between $60-$90m, the company’s fourth social casino acquisition in as many years.
Parent company Caesars Entertainment posted overall full-year revenues of $8.56bn, a 0.2% decrease on the previous 12-month period. Meanwhile Q4 net revenues contributed $2.08bn to the full-year total, with $74m coming from Caesars Interactive for the quarter.
Adjusted EBITDA was $1.85bn for the full year, a 4.3% decrease on the previous year leading to an overall net loss of $2.95bn.
Earlier this month Caesars Entertainment revealed it had sold $2.2bn of assets to its subsidiary company Caesars Growth Partners, including Bally’s Las Vegas, The Cromwell, The Quad, and Harrah’s New Orleans in a bid to consolidate its debts.