Caesars Entertainment, Inc.

Hello. Thank you for standing by. Welcome to Caesars Entertainment, Inc. 2024 Second Quarter Earnings 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 the question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. I would now like to turn the call over to Brian Agnew, Senior Vice President of Corporate Finance, Treasury, and Investor Relations. Sir, you may begin.

Thank you, Tawanda, and good afternoon to everyone on the call. Welcome to our conference call to discuss our second quarter 2024 earnings. This afternoon, we issued a press release announcing our financial results for the period ended June 30, 2024. 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 Riege, our Chief Executive Officer, Anthony Carano, our President and Chief Operating Officer, Brett Yunker, our Chief Financial Officer, Eric Heschen, President Caesar Sports and Online Gaming, and Cherise Crumbly in Investor Relations. 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 under safe harbor federal securities laws, and these statements may or may not come true. Also, during today's call, the company may discuss certain non-GAAP financial measures as defined by SEC Regulation G. Please visit our press releases located on our investor relations website for a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure. With that out of the way, I will turn the call over to Anthony.

Thank you, Brian, and good afternoon to everyone on the call. Our second quarter delivered consolidated net revenues of $2.8 billion and total adjusted EBITDA of $1 billion, both flat versus prior year. Our Las Vegas segment delivered a same-store second quarter net revenue record of $1.1 billion, and our adjusted EBITDA of $514 million beat the prior year by 1.2%. These results were driven by continued growth in hotel cash revenue as a result of higher year-over-year occupancy and ADRs and record performance from our food and beverage. Recent room renovations at our newly rebranded Versailles Tower at Paris and Coliseum Tower at Caesars Palace are driving above-plan returns on investment driven by strong gains in cash ADRs. The group and convention segment also delivered an increase in occupied room night mix year-over-year, and recent forward pace for 2025 has strengthened. Las Vegas EBITDA margins of 46.6% were down only 40 basis points year over year, despite increases in labor. We remain encouraged for operating trends in Las Vegas segment based on our forward expectations for continued strong occupancy and hotel pricing trends, coupled with a decrease in room inventory on the Las Vegas Strip. In our regional segment, adjusted EBITDA for the quarter was $469 million, down 8% year over year, Results were driven by a combination of competitive pressures in certain markets, construction disruption, principally in New Orleans, and a difficult comparison in Reno due to a large group event last year, offset by performance from our Danville and Nebraska properties. Despite revenue declines, EBITDA margins in our regional segment were down only 100 basis points, reflecting strong cost discipline. During the quarter, we celebrated the opening of Harris, Nebraska's permanent facility on May 17th, the company's first property in the state, which is off to a strong start. We look forward to the completion of our newly rebranded Caesars property in New Orleans in October and the opening of the Danville permanent facility in December. Our elevated capital investment cycle is coming to an end, which will drive strong returns for the regional segment looking ahead. Our team members continue to deliver exceptional guest experiences as a result of their continued hard work and dedication. I want to thank all of our team members for their contributions to our strong results, which are a product of their commitment to excellence. With that, I will now turn the call over to Eric for some detail on the second quarter results in our Caesars Digital segment.