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Actionable news in CACQ: CAESARS ACQUISITION COMPANY,

Caesars Acquisition Company Reports Third Quarter 2015 Results LAS VEGAS,

The following excerpt is from the company's SEC filing.

- Caesars Acquisition Company (NASDAQ: CACQ) today reported the following results for Caesars Growth Partners, LLC ("CGP LLC") for the

quarter 2015. Caesars Acquisition Company ("CAC") was formed to make an investment in CGP LLC, owns

of the voting membership units of CGP LLC and accounts for its investment under the equity method.

Achieved another record quarter in the Interactive Entertainment business unit with revenues and Adjusted EBITDA up

three-month period ended September 30, 2015

as compared to the three-month period ended

September 30, 2014

Generated solid growth in the Casino Properties and Developments business unit with revenues and Adjusted EBITDA up

Operating Results of CGP LLC

In May

, subsidiaries of CGP LLC acquired Bally’s Las Vegas, The Cromwell, The LINQ Hotel & Casino and Harrah’s New Orleans from subsidiaries of Caesars Entertainment Operating Company, Inc. ("CEOC"). Because these acquisitions were accounted for as transactions among entities under common control, the financial information herein includes the financial results for these properties as if those businesses were combined into the CGP LLC reporting entity through the May

acquisition dates and consolidated into CGP LLC after the May

acquisition dates. Therefore, the financial information contained herein provides comparable results for the periods presented.

Three Months Ended

September 30,

Percent Favorable/ (Unfavorable)

Nine Months Ended

(In millions)

Interactive entertainment net revenues

Casino properties and developments net revenues

1,186.6

Total net revenues

1,743.9

1,340.7

Income from operations

Net income from continuing operations

Net loss from discontinued operations

_____________________________________________________

Adjusted Earnings before Interest Income/Expense, Income Taxes, Depreciation and Amortization ("EBITDA") is a non-GAAP financial measure that is reconciled to its most comparable GAAP measure later in this release.

Management Commentary

"Caesars Growth Partners, LLC reported another great quarter driven by growth in both of our business units," said Mitch Garber, chief executive officer of Caesars Acquisition Company. "Our Interactive Entertainment business continues to generate outstanding results, primarily from our market leading social and mobile games business. With the completion of The LINQ Hotel & Casino renovation in July 2015, our Casino Properties and Developments unit had its first quarter since Q2 2014 with no construction

disruption. We will continue to focus on both business units to yield growth, and we remain encouraged by the strong performance of our assets."

Financial Results

Third Quarter 2015

results compared with

Third Quarter 2014

Net revenues for the

third quarter of 2015

$601.2 million

$485.8 million

for the respective period in

, which was an increase of

$115.4 million

. The increase in revenue for Caesars Interactive Entertainment, Inc. ("Caesars Interactive" or "CIE") was primarily driven by strong organic growth in the social and mobile games operating unit. The increase in revenues for Casino Properties and Developments was primarily a result of the opening of Horseshoe Baltimore in August

and renovations at The LINQ Hotel & Casino.

Income from operations for the

$86.2 million

$82.1 million

for the same period in

$4.1 million

. The increase in income from operations was primarily driven by the income impact of increased revenues offset by increased expenses resulting from the opening of the Horseshoe Baltimore and an increase in the fair value of contingently issuable non-voting membership units.

Net loss from discontinued operations was

$14.6 million

in the third quarter of

, related to CIE's operations of a development studio in Minsk, Belarus which was disposed of in the fourth quarter of

Adjusted EBITDA for the

$168.6 million

$105.4 million

, respectively, which is an increase of

$63.2 million

, driven primarily by the income impact of increased revenues and reduced operating expense, partially offset by increased expenses resulting from the opening of the Horseshoe Baltimore.

Nine Months Ended September 30, 2015

nine months ended September 30, 2015

$1,743.9 million

$1,340.7 million

$403.2 million

. The increase in revenue for CIE was primarily driven by strong organic growth in CIE's social and mobile games, as well as the February 2014 acquisition of Pacific Interactive. The increase in revenues for Casino Properties and Developments was primarily a result of the openings of The Cromwell in May

and Horseshoe Baltimore in August

, and renovations at The LINQ Hotel & Casino, partially offset by lower revenues at Harrah's New Orleans as a result of the April

smoking ban.

$389.3 million

$91.1 million

$298.2 million

327.3%

. The increase in income from operations is primarily attributable to the decrease in the fair value of contingently issuable non-voting membership units and an increase in the prior year in the change in fair value of contingent consideration. Excluding the impact of the change in fair value of contingently issuable non-voting membership units and change in fair value of contingent consideration from both periods, income from operations for the

increased by

$165.9 million

when compared to the same period in

due to year over year growth in CIE as well as the openings of The Cromwell and Horseshoe Baltimore and renovations at The LINQ Hotel & Casino.

$15.6 million

nine months ended September 30, 2014

$477.0 million

$312.8 million

, respectively. The increase of

$164.2 million

, from the prior period was driven primarily by the income impact of increased revenues and improved operational expenses, partially offset by increased expenses resulting from operating costs incurred after the openings of The Cromwell and Horseshoe Baltimore.

Business Units Operating Results

Net income/(loss) from continuing operations

See Reconciliation of Net Income/(Loss) from Continuing Operations to Adjusted EBITDA later in this release.

N/M is defined as not meaningful.

Interactive Entertainment net revenues increased by

$32.9 million

, in the

as compared to the same period in

, resulting primarily from strong organic growth in CIE's social and mobile games due to the continued focus on conversion and monetization. Income from operations increased by

$22.4 million

111.4%

, primarily driven by the increase in revenues. Net loss from discontinued operations was

for the third quarter of

due to CIE’s suspension of operations of the Minsk development studio. Adjusted EBITDA increased by

$19.3 million

, driven by the income impact of increased revenues and reduced online real money gaming marketing expenses.

$126.9 million

, during the

, resulting primarily from strong organic growth in CIE's social and mobile games, as well as the February

acquisition of Pacific Interactive. Income from operations increased by

$116.4 million

$75.7 million

, during the nine months ended

Performance Metrics - Interactive Entertainment

The table below shows the results of CIE's business based upon the financial metrics for the periods presented.

For the Three Months Ended

Sept. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Revenues

Social and mobile games

WSOP and online real money gaming

The table below shows the results of CIE's social and mobile games business using operating metrics for the periods indicated. User statistics are presented in thousands of users and average revenue per user is presented in dollars.

Sept. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Average Daily Active Users

Average Monthly Active Users

19,324

19,177

19,044

17,863

17,767

Average Monthly Unique Users

18,657

17,918

17,803

16,508

16,472

Average Monthly Unique Payers

Average Revenue Per User

CIE systems cannot always distinguish unique individuals playing games in multiple...


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