Caesars appoints Japan head, releases 17Q3 results

Caesars Entertainment on Wednesday announced that it has appointed William Shen as managing director and representative officer of Caesars Entertainment Japan.

He will serve as the “on-the-ground executive responsible for the company’s overall efforts in Japan,” based out of the company’s office in Roppongi, Tokyo.

Previously, Mr. Shen had been in charge of Caesars’ operations in South Korea, and will still have some involvement with the company’s IR project in Incheon.

It would appear that with other international operators such as MGM and Melco quickly bulking up their operations within Japan, Caesars felt a sense of urgency to strengthen its own in-country team.

It was as recently as late August that Caesars had appointed Yusuke Watanabe, who has a financial industry background, as its inaugural head of Japan business development. This new appointment of Shen apparently supersedes the earlier hire.

Steven Tight, president of international development, notes, “Caesars Entertainment now has five full-time team members staffed in Japan, with several more development professionals supporting the effort from our offices in Hong Kong and Las Vegas. Together, with our growing team of advisors and consultants, we believe we are well positioned to expand our business in Japan.”

Revenue growth accelerates

On Thursday, the company released its 2017 third quarter results - posting a net loss of $460 million in the quarter. Net revenue was flat at $1.0 billion.

However, on a same-store basis, net revenue was up 3.8 percent, driven by strong gaming volume, hotel performance, and incremental revenues from operational initiatives.

Adjusted EBITDA improved by 12.6 percent in the quarter, reaching $303 million.

Mark Frissora, president and CEO of Caesars noted that revenue growth accelerated in the third quarter, led by a 10.4 percent improvement in Caesars Palace gaming revenue.

"Despite $10-15 million of unfavorable year-over-year hold, our GAAP operating income and enterprise-wide adjusted EBITDA margins improved… supported by increased gaming volume across our domestic properties, solid hospitality performance, and improved labor productivity.”

 

Speaking of the recent restructuring of CEOC and merger with CAC on October 6, Mr. Frissora added: “Our future appears bright with a much improved balance sheet, approximately $2 billion in cash, and strong free cash flow. We are well positioned to continue to invest in our core business and pursue a more diversified growth strategy."

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