Caesars Entertainment surprised investors with a third-quarter loss, falling short of market expectations. The company attributed the poor results to new competition and disruptions caused by construction in regional markets. Following the news, Caesars’ shares dropped by 4% in after-hours trading.
Instead of the expected profit of 12 cents per share, Caesars reported a loss of 4 cents per share for the quarter. The decline in sales was particularly evident in the U.S. regional market, where the company faced increased competition from new players and expanded offerings from existing rivals.
One of the major challenges highlighted by Caesars was the tough competition in Indianapolis, particularly from Churchill’s Terre Haute casino resort. Sales in the regional segment plummeted by 7.6% to $1.45 billion.
Additionally, Caesars encountered disruptions at its New Orleans property due to ongoing construction work on a $435 million renovation project. As a result, the company’s revenue for the quarter ending on September 30 dropped by 4% to $2.87 billion, missing analysts’ estimates of $2.92 billion.