Eldorado Resorts is expecting to seal the deal with the rival Caesars Entertainment very soon. The Reno-based casino operator stated on Wednesday that their revenue was at $663 million in the three month period that ended on September 30. This is a rise of over 36 percent in comparison to the same Q3 period in 2018.
However, using other means of calculating profits and revenue show that the recent acquisition of the operator came into the same figure. Using the so-called same-store basis shows that Eldorado’s revenue is down by 4.1 percent when compared to the same period in 2018. At the same time, operating income is up for 22 percent on a year-on-year basis and now stands at $351 million.
CEO of the company Tom Reeg stated that the operator made record earnings for Q3. What is even more interesting is the fact that Eldorado paid back some of its debts. In Q3, the operator repaid $70 million and boosted the year-to-date repayments to well over $300 million. Reeg singled out the rollout of the services in the legal sports betting domain in the US.
In his words, this is immensely helping the operator in bringing a new and younger audience to their facilities. In this quarter alone, Eldorado launched sports betting at six of its properties in Indiana, Iowa, and Mississippi. Now 13 casinos are offering sports betting and this is half of the entire company portfolio. In Colorado, the company has two casinos and there will also get sports betting services.
The merger of Eldorado with Caesars is pending. However, there is still the vote that needs to take place as well. In that vote, the investors from both companies will get to give their take on the proposed union. The same vote should take place next week.
Reeg believes that the merger will be on track and that it should be done in early 2020. However, he is also mindful of the possibility of the same process dragging into the second quarter of the year. Before that takes place, the senior management of Eldorado will now be welcome to visit ever Caesar’s domestic US assets.
Furthermore, Reeg believes that the period will also provide an opportunity for the merger of the best practices of both companies. However, analysts also point out that Eldorado wants to identify the weak performers in Caesar’s family. Once the merger is done, these will be likely sold first.
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