LAS VEGAS, May 2, 2017 — Caesars Entertainment Corporation (NASDAQ: CZR) today reported first quarter of 2017 results as summarized in the discussion below, which highlights certain GAAP and non-GAAP financial measures on a consolidated basis.

First Quarter 2017

  • Net revenues for CEC increased 1.4% year-over-year to $963 million primarily attributable to strong growth in the Las Vegas region due to improved hotel performance.
  • Net loss for CEC, before including the effect of noncontrolling interest, was $524 million compared with a net loss of $274 million in the first quarter of 2016 mainly due to a $466 million accrual related to the restructuring of Caesars Entertainment Operating Company, Inc. ("CEOC") compared with an accrual of $237 million in the prior year period.
  • Adjusted EBITDA for CEC grew 5.0% year-over-year to $274 million.
  • CEC Cash ADR in Las Vegas rose 10% due to increased resort fees, effective hotel yield management and improved pricing due to room product enhancements.
  • Subsequent to the end of the quarter, CEOC successfully priced $1.4 billion of senior secured credit facilities, marking another important milestone in the process to complete CEOC's restructuring. The closing is expected to occur in connection with CEOC's emergence from bankruptcy in the second half of the third quarter of 2017, subject to a number of conditions.

"Caesars Entertainment delivered another quarter of successful execution, highlighted by strong growth in hotel revenues fueled by a double-digit percentage increase in Las Vegas Cash ADR. These gains reflect the positive impact of our investments in property renovations," said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment. "Rising hotel revenues combined with increased operating efficiency drove higher EBITDA and supported our continued margin expansion. The conclusion of CEOC's restructuring is on track for the second half of the third quarter and represents an important milestone that will allow us to expand the range of growth opportunities available to us."

Summary Financial Data

The results of CEOC and its subsidiaries are no longer consolidated with Caesars subsequent to CEOC and certain of its United States subsidiaries (the "Debtors") voluntarily filing for reorganization under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") on January 15, 2015. In January 2017, the U.S. Bankruptcy Court for the Northern District of Illinois approved CEOC's Plan of Reorganization.

Supplemental materials have been posted on the Caesars Entertainment Investor Relations website at http://investor.caesars.com/financials.cfm.

Three Months Ended March 31,

Change %

(Dollars in millions, except per share data)

2017

2016

Casino revenues

$

532

$

538

(1.1)%

Net revenues

963

950

1.4%

Income from operations

158

88

79.5%

Restructuring of CEOC and other

(463)

(237)

(95.4)%

Loss from continuing operations, net of income taxes

(524)

(307)

(70.7)%

Discontinued operations, net of income taxes

33

(100.0)%

Net loss

(524)

(274)

(91.2)%

Net loss attributable to Caesars

(546)

(308)

(77.3)%

Basic and diluted loss per share

(3.71)

(2.12)

(75.0)%

Property EBITDA (1)

290

276

5.1%

Adjusted EBITDA (1)

274

261

5.0%

____________________

See "Footnotes to Tables" following Balance Sheet and Other Items later in this release.

First Quarter of 2017 Financial Results

We view each casino property as an operating segment and currently aggregate all such casino properties into two reportable segments based on management's view, which aligns with their own ownership and underlying credit structures: CERP and CGP. On September 23, 2016, CIE sold its social and mobile games business ("SMG Business") and retained only its World Series of Poker ("WSOP") and regulated online real money gaming businesses. The SMG Business represented the majority of CIE's operations and is being classified as a discontinued operation for all periods presented.

Segment results in this release are presented consistent with the way Caesars management assesses these results and allocates resources, which is a consolidated view that adjusts for the impact of certain transactions between reportable segments within Caesars, as described below. Accordingly, the results of certain reportable segments presented in this filing differ from the financial statement information presented in their stand-alone filings. "Other" includes parent, consolidating, and other adjustments to reconcile to consolidated Caesars results. All comparisons are to the same period of the previous year.

Net Revenues

Three Months Ended March 31,

Percent Favorable/ (Unfavorable)

(Dollars in millions)

2017

2016

CERP

$

546

$

528

3.4%

CGP

421

426

(1.2)%

Other (2)

(4)

(4)

—%

Consolidated

$

963

$

950

1.4%

Income/(Loss) from Operations

Three Months Ended March 31,

Percent Favorable/ (Unfavorable)

(Dollars in millions)

2017

2016

CERP

$

110

$

78

41.0%

CGP

55

51

7.8%

Other (2)

(7)

(41)

82.9%

Consolidated

$

158

$

88

79.5%

Net Income/(Loss)

Three Months Ended March 31,

Percent Favorable/ (Unfavorable)

(Dollars in millions)

2017

2016

CERP

$

6

$

(16)

*

CGP

7

34

(79.4)%

Other (2)

(537)

(292)

(83.9)%

Consolidated

$

(524)

$

(274)

(91.2)%

Property EBITDA

Three Months Ended March 31,

Percent Favorable/ (Unfavorable)

(Dollars in millions)

2017

2016

CERP

$

177

$

164

7.9%

CGP

114

111

2.7%

Other (2)

(1)

1

*

Consolidated

$

290

$

276

5.1%

Adjusted EBITDA

Three Months Ended March 31,

Percent Favorable/ (Unfavorable)

(Dollars in millions)

2017

2016

CERP

$

171

$

158

8.2%

CGP

109

107

1.9%

Other (2)

(6)

(4)

(50.0)%

Consolidated

$

274

$

261

5.0%

CEC

Net revenues increased 1.4% year-over-year to $963 million primarily attributable to improved Las Vegas hotel performance. These areas were partially offset by lower casino revenues as a result of significant unfavorable hold and lower gaming volume primarily at CGP. Income from operations increased $70 million to $158 million in the first quarter of 2017. Net loss, before including the effect of non-controlling interest, was $524 million compared with a net loss of $274 million in the first quarter of 2016 mainly due to a $466 million accrual related to CEC's estimate of the additional amount it will pay to support the restructuring of CEOC compared with an accrual of $237 million in the prior year period. Property EBITDA increased 5.1% to $290 million in the first quarter of 2017 and adjusted EBITDA increased 5.0% to $274 million in the first quarter of 2017 mainly due to higher rooms revenues and improved efficiency initiatives, and was partially offset by lower gaming revenues.

CERP

CERP owns six casinos in the United States and The LINQ promenade, along with leasing Octavius Tower at Caesars Palace Las Vegas to CEOC and gaming space at The LINQ promenade to CGP.

Net revenues for the first quarter of 2017 were $546 million, up 3.4% primarily due to increased rooms and casino revenues. Rooms revenues rose 10.3% in the quarter to $150 million mainly due to higher hotel rates, improved hotel yield and resort fees. Hotel performance benefited as room nights out of service in the first quarter of 2017 dropped to 19,000 compared with 47,000 out of service in the year ago quarter. Casino revenues were $280 million, up 2.9% from the prior year primarily due to higher gaming volumes partially offset by unfavorable year-over-year hold. Food and beverage revenues were $127 million, down 3.1% versus the year ago quarter.

Income from operations increased $32 million to $110 million, net income increased to $6 million from a loss of $16 million in the year ago quarter. Adjusted EBITDA increased 8.2% to $171 million, mainly due to higher revenues and efficiency initiatives. Hold was estimated to have an unfavorable effect on operating income in the quarter relative to expected hold and an unfavorable effect of between $5 million and $10 million when compared with the prior year period.

CGP

CGP owns six casinos in the United States, primarily in Las Vegas, as well as CIE. CIE owns and operates regulated online real money gaming and the WSOP tournaments and brand.

Net revenues for the first quarter of 2017 were $421 million, a 1.2% decrease primarily attributable to a decline in casino revenues from unfavorable hold and significant room outages due to our renovation schedule, partially offset by Cash ADR growth of 8%. Casino revenues were $253 million, down 4.9% from the prior year mainly driven by unfavorable year-over-year hold and weaker gaming volumes in Baltimore. Room revenues were flat as higher cash ADR offset the impact of room outages. Planet Hollywood was impacted by 38,000 room nights off the market during the quarter related to renovations versus none in the year ago quarter. Food and beverage revenues were $69 million, down 1.4% versus the year ago period.

Income from operations increased $4 million to $55 million mainly due to a 2.4% reduction in operating expenses. Net income decreased from $34 million to $7 million primarily attributable to discontinued operations associated with the sale of the social and mobile games business at CIE and accelerated depreciation due to room renovations at Planet Hollywood, slightly offset by lower stock based compensation at CIE. Adjusted EBITDA increased 1.9% to $109 million year-over-year due to efficiency gains driven by lower operating expenses across marketing and labor. Hold was estimated to have a negative effect on operating income relative to expected hold and an unfavorable effect of between $5 million and $10 million when compared with the prior year period.

CES

Caesars Enterprise Services ("CES") is a joint venture among CERP, CEOC, and a subsidiary of CGP. CES provides certain corporate and administrative services to their casino properties. In addition, effective October 2014 most of the properties owned by CERP and CGP are managed by CES.

Cash and Available Revolver Capacity

CEC is primarily a holding company with no independent operations, employees, or material debt issuances of its own. CEC's primary assets as of March 31, 2017, consist of $115 million in cash and cash equivalents and its ownership interests in CEOC, CERP and CGP. CEC's cash includes $109 million held by insurance captives. Each of the subsidiary entities comprising Caesars Entertainment's consolidated financial statements have separate debt agreements with restrictions on usage of the respective entity's capital resources. CGP is a variable interest entity that is consolidated by Caesars Entertainment, but is controlled by its sole voting member, Caesars Acquisition Company ("CAC"). CAC is a managing member of CGP and therefore controls all decisions regarding liquidity and capital resources of CGP.

CEC has limited unrestricted cash available to meet its financial commitments, primarily resulting from significant expenditures made to defend against litigation related to the CEOC restructuring and to support a plan of reorganization for CEOC. The completion of the merger with CAC is expected to allow CEC to fulfill its financial commitments in support of the restructuring; under the terms of the restructuring, and prior thereto. CEC is permitted to use a portion of the proceeds from the sale of CIE's SMG Business to fund certain expenses incurred related to the restructuring. If CEC is unable to obtain additional sources of cash when needed, in the event of a material adverse ruling on one or all of our ongoing litigation matters, or if CEOC does not emerge from bankruptcy on a timely basis on terms and under circumstances satisfactory to CEC, it is likely that CEC would seek reorganization under Chapter 11 of the Bankruptcy Code.

March 31, 2017

(In millions)

CERP

CGP

CES (3)

Other (4)

Cash and cash equivalents

$

224

$

1,031

$

84

$

115

Revolver capacity

270

160

Revolver capacity drawn or committed to letters of credit

Total Liquidity

$

494

$

1,191

$

84

$

115

Footnotes to Tables

*

Not meaningful.

(1)

See the Reconciliation of Non-GAAP Financial Measures discussion later in this release for a reconciliation of Property EBITDA and Adjusted EBITDA.

(2)

Other includes parent, consolidating, and other adjustments to reconcile to consolidated CEC results.

(3)

CES is a joint venture among CERP, CEOC, and a subsidiary of CGP that provides certain corporate and administrative services to their casino properties.

(4)

Other reflects CEC and its other direct subsidiaries.

To view full financial release and corresponding tables please click the PDF icon or visit: http://investor.caesars.com/releasedetail.cfm?ReleaseID=1024055