In preparation for CZR's 2Q earnings release Monday, we’ve put together the recent pertinent forward looking company commentary
CAESARS, ROCK GAMING CONSORTIUM GRANTED LICENSE TO OPERATE DOWNTOWN BALTIMORE VLT FACILITY (JULY 31)
Caesars, Rock Gaming Consortium Granted License to Operate Downtown Baltimore VLT Facility
- Harrah's Baltimore: $300MM investment, up to 3,750 VLTs
- Construction is expected to begin in the second quarter of 2013, with an opening targeted in the second quarter of 2014.
WELLS FARGO SECURITIES GAMING CONFERENCE (MAY 21)
- "We still had a healthy FIT customer base, but the channel that they're booking is more direct as opposed to through the OTAs and that's helpful in terms of the economics."
- "What we hope to achieve is improving mix over time and that was like I said less of a reliance on wholesale operators which for us right now stands at 10% or less of our room nights, continuing to shift that mix into FIT and gaming customers and that's where we will drive RevPAR growth, not really through occupancy growth."
- "In terms of thinking about RevPAR growth.... low to mid-single digit RevPAR growth and we'd be comfortable with that number."
- [Midwest/South/International regions] "There is certainly room to increase those margins....Our margins should be able to grow even in the phase of flat revenues because of the delivery of the savings from our Project Renewal program."
- "One element which drove improvement in Atlantic City was the elimination or severe reduction of our property taxes in that market and that will continue to deliver the benefit throughout the year and into next year as well."
- "In managed international and other... our online business which is growing nicely is in that category, although London Clubs and Punta del Este as well as our managed properties are growing nicely."
- "The environment in Atlantic City... continues to be challenging and we remain focused on modifying our cost structure there to realize appropriate returns."
- [Revel impact] "Our hypothesis is that it will marginally help the Showboat. It will hurt Bally's because Bally's is burdened by that much higher cost structure and then it will be a bit neutral on Harrah's Resort and Caesars Atlantic City, but we're not drawing any conclusions until we get into August and can kind of take stock about the way it performed in the summertime."
- "We certainly may sell other assets in the future. I would not suggest that we would sell a business as large as Harrah's St. Louis."
- "There will be online gaming here in Nevada by the end of the year and potentially some other states as well, and we're getting ready for that."
- [Octavius Tower] "We expect to complete construction of the three additional ultra luxury villas later this year."
- "The Linq will open in phases beginning in mid to late 2013. We'll begin to announce some of the tenants for this project in the next several months. O'Shea's will reopen with a prominent new space when the Linq is completed."
- "In the second quarter, the Cleveland operation management fees will begin to flow into our managed regions. So over time, we expect the managed fees of our business to become a much more meaningful revenue source."
1Q CONFERENCE CALL YOUTUBE (May 1)
- "We are optimistic is that we think that the rate environment in Las Vegas is constructive and positive for the remainder of the year.
- [Atlantic City taxes] "And the second was this refund of prior taxes paid, where we'll receive the cash in the future in the form of a reduced tax outlay."
- "Nobu Tower will open at the end of 2012. Cost is $30 million with about 280 rooms"
- [Online gaming] "I expect a favorable result in New Jersey, but probably not immediately. And in Nevada, of course, everything is in very good shape. We're in the process of licensure for our offering here in Nevada. So hopefully, that will be finished well before the end of the year."
