There’s no doubt that Eldorado’s shareholders have much to consider in the upcoming vote on November 15th. Indeed, this Friday will more or less decide the faith or at least part of it, of the Caesars’ and Eldorado merger. A transaction that until today has captivated the interest of the media worldwide. And the latest Q3 figures released by Caesars’ earlier this month, only help to fuel the speculations.
In fact, according to a November 6th piece, it seems that the company finances are a real disaster. And the numbers indicated a loss of $359 Million in Q3-2019. And according to Caesars, it’s actually not that bad because they’re many factors to take into account.
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New Jersey’s competition is hard
For many, a revenue dip of 1% (in the other US segments) wouldn’t be that bad. But when you’re Caesars and generate Millions every year. Even a small drop in hotel occupancy can have a huge impact. And with 3 casinos to maintain in Atlantic city, Caesars, Bally’s and Harrah’s it’s hard to keep the high standards people have come to expect.
Especially when folks have the option to stay in the newly refurbished casino hotels like Hard Rock and Ocean Resort.
But apparently, this is a problem the company has addressed with the completion of Harrah’s massive renovation worth $56 Million. And that too should generate a buzz.
VIP players aren’t fans
Another contributing factor to the decreasing figures is that according to Caesars, the company didn’t manage to get as many VIP players through the door. And this meant the revenue dropped by 4% in this area too.
Now after the reporting the shocking figures, Tony Rodio, Caesars’ new CEO, reminded everyone that the sale of the Rio is still very much on the table. And if the company agree it could boost the coffers in the next quarter by as much as $516 Million. And that’s something that Friday’s voters will undoubtedly take into account too…