Caesars Entertainment Corp and its subsidiaries own nearly half the casinos on the Las Vegas Strip: Caesars Palace, Octavius Tower (which is separate), Bally's Las Vegas, Harrah's Las Vegas, The Cromwell (formerly Barbary Coast), Flamingo, Paris Las Vegas, The Quad, Rio, LINQ, Horseshoe and Planet Hollywood. It bought up both Bally's and Harrah's.
To finance the acquisitions and go private, it rang up a total of $30 billion in debt in 2007. The interest costs are $575 million per quarter. The problem is that its EBITDA is only $400 million per quarter. It keeps selling casinos to raise cash but it still owes about $23 billion.
"Caesars Entertainment Corp. today reported its fourth-quarter earnings, announcing a stunning loss of $1.756 billion.
Revenue: $2.078 billion (up 3.2 percent from the fourth quarter of 2012). Casino revenues declined $75.3 million, or 5.1%, compared to the previous year.
Earnings: The company lost $1.75 billion, a major hit compared to the $435 million loss Caesars suffered in the same quarter a year earlier." http://www.vegasinc.com/business/gaming/2014/mar/11/caesars-reports-4th-quarter-losses-top-17-billion/ In other words, it would have to almost double its revenues just to break even.
This is going to end well. Not.
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