Caesars Entertainment’s Credit Rating Upgraded by S&P Global Ratings as Digital Losses Decreased
S&P Global Ratings has upgraded Caesars Entertainment’s credit rating since Caesars significantly moderates digital losses and the leverage is expected to improve in 2023.
Through the past 18 months, the operator’s digital segment has impacted EBITDA negatively. However, the recent quarters show the situation has changed because of digital revenue scaling up in new states and loyalty data leveraging to make marketing efforts more efficiently targeted to customers. Moreover, Caesars expects to reduce advertising and promotional spending and customer acquisition costs. Furthermore, the company’s investments in the regional portfolio and convention and group recovery in Las Vegas will help offset inflationary pressures and is likely to support margin: according to S&P Global Ratings’s forecast, Caesars’ casino EBITDA for the current year will see a 4-6% increase.
Meanwhile, the shift in spending to experiences from products may take a continuous period of time. In parallel, positive Las Vegas gaming revenue may begin to slow down if consumers’ willingness to spend on travel and entertainment this year is hit by reduced accumulated savings, higher unemployment and ongoing high inflation.
Recently, Caesars Entertainment has signed a partnership with Bakkt to offer crypto rewards to loyalty program members after the regulatory approval is given. The collaboration also includes plans to rename the Planet Hollywood Resort & Casino’s live entertainment venue to Bakkt Theater. The existing suite of Bakkt’s cryptocurrency solutions is aimed to be further explored and innovated as the digital economy continues to evolve quickly. Both Caesars and Bakkt are eager to provide a seamless experience to their customers.
In other news, Endorphina announces participation in Enada Primavera 2023 event.