Caesars Entertainment, Inc.

Good day and thank you for standing by. Welcome to the Caesars Entertainment Inc. 2023 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Brian Agnew, Senior Vice President of Corporate Finance, Treasury, and Investor Relations.

Thank you, Josh, and good afternoon to everyone on the call. Welcome to our conference call to discuss our third quarter 2023 earnings. This afternoon, we issued a press release announcing our financial results for the period ended September 30, 2023. A copy of the press release is available in the Investor Relations section of our website at investor.caesars.com. As usual, joining me on the call today are Tom Reed, our CEO, Anthony Carano, our President and Chief Operating Officer, Brett Yunker, our CFO, and Eric Cashin, President of Caesar Sports and Online Gaming. Before I turn the call over to Anthony, I would like to remind you that during today's conference call, we may make certain forward-looking statements about the company's performance. Such forward-looking statements are not guarantees of future performance, and therefore one should not place undue reliance on them. Forward-looking statements are also subject to the inherent risks and uncertainties that could cause actual results to differ materially from those expressed. For additional information concerning factors that could cause actual results to differ from those discussed in our comments today, you should refer to the cautionary statements contained in our press release and also the risk factors contained in our company's filings with the Securities and Exchange Commission. Caesars Entertainment undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after today's call. Also, during today's call, the company may discuss certain non-GAAP measures as defined by SEC Regulation G. The GAAP financial measure is most directly comparable to each non-GAAP financial measure discussed, and the reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found on the company's website at investors.caesars.com by selecting the press release regarding the company's 2023 third quarter financial results. With the disclaimer out of the way, I will now turn the call over to Anthony.

Thank you, Brian, and good afternoon to everyone on the call. We delivered the strongest consolidated adjusted EBITDA quarter in the history of the company, led by a new all-time quarterly adjusted EBITDA record in our regional markets, profitability in our digital segment, and continued strength in our Las Vegas segment. All three segments grew adjusted EBITDA year over year. Starting with our Las Vegas segment, demand trends remained healthy during the third quarter, with occupancy increasing to 96.6% versus 93.6% in the prior year. Total Las Vegas segment revenues were up 4%, driven by higher occupancy and higher ADRs, which drove record cash hotel revenues, record gaming revenues, and record food and beverage revenues. Excluding real payments, our Las Vegas segment generated $494 million of adjusted EBITDA with a margin of 44%. During the quarter, our group segment also delivered an all-time Q3 record for adjusted EBITDA. As we look to the remainder of the year, Las Vegas continues to benefit from strong leisure and casino guest demand, a robust events calendar, and the continued strength of the group and convention segment. We're looking forward to the inaugural F1 race in November, the culmination of significant planning and infrastructure improvements executed by the city in order to deliver a great event. Heading into 24, we are also excited for Las Vegas to host the Super Bowl in February, in addition to many other new and exciting events planned throughout the year. Las Vegas continues to benefit from one of the strongest event calendars in the United States. In our regional segment, revenues were up 2% versus last year, and adjusted EBITDA grew to $575 million, the best regional quarter on record. stable guest demand combined with excellent performance from our completed capital projects and newly opened facilities help to offset competitive pressures in a few of our markets. Our regional segment is benefiting from a diversified portfolio across the United States. Turning to our capital projects, we are anticipating a Q4 opening for our Harris Hoosier Park property expansion, and we expect to have the new Versailles Tower Rooms in Vegas online by the end of the year. 2024 is a busy year, and we expect to complete the permanent facilities in Danville, Virginia, and Columbus, Nebraska, as well as the new hotel tower and completely remodeled Caesars New Orleans project. We are looking forward to a strong finish to 2023. Consumer demand remains strong, and our capital projects are winding down. We will continue to remain focused on operating cost efficiencies harvesting returns on project capital, and driving long-term EBITDA growth. I want to thank all of our team members for their hard work. Our success is a direct result of the dedication of our team members and their commitment to delivering exceptional guest experiences every day. With that, I'll now turn the call over to Eric for some insights on the second quarter in our digital segment.