Caesars Acquisition Company (CACQ) has cited the success of its interactive arm as one of the main reasons behind year-on-year financial growth during the first six months of 2016.
Total net revenues in the first half amounted to $1.3 billion (€1.2 billion), which represents an increase of 15.3% on the $1.1 billion achieved in the same period last year.
Revenue from casino properties and developments was up 7.7% year-on-year to $840 million, while Caesars Interactive Entertainment (CIE) net revenue rocketed by 31.5% to $477.2 million.
The company’s overall adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also increased 32.3% to $407.9 million.
However, Caesars did note that income from operations dropped 32% to $206.2 million, with net income also falling by 66.2% to $61.2 million.
The first-half results reflect a similar performance in the second quarter, during which total net revenue increased 16.9% year-on-year, with both Caesars’ casino properties and developments, and interactive division witnessing growth.
Adjusted EBITDA in the three months to June 30 was up 33% to $213.3 million, while net income fell 34.3% to $24.3 million.
“The increase in revenue for CIE was primarily driven by strong organic growth in CIE’s social and mobile games operating unit due to the continued focus on conversion and monetisation,” Caesars said in a statement.
“The increase in revenues for casino properties and developments was primarily due to an increase in casino revenues at Horseshoe Baltimore, an increase in entertainment revenues at Planet Hollywood, and increases in all categories of revenues as a result of renovations at The LINQ Hotel & Casino.
“These increases were partially offset by lower revenues at Harrah’s New Orleans as a result of the April 2015 smoking ban.”
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