Caesars Entertainment shares dropped by 1.5% in extended training on Tuesday after the company reported lower-than-expected earnings for the fourth quarter. The Casino operator, which runs Caesars Atlantic City and Caesars Palace, saw its Las Vegas casino operations hit by higher costs.
Revenue for the quarter ended December 31 was $2.83 billion, falling short of an estimated $2.85 billion according to LSEG data. Still, Caesars’ net loss of 34 cents per share beat the net loss of 70 cents per share that the company incurred during the same period the previous year.
Profits were hit primarily by the rising expenses faced by Caesars’ Las Vegas operations, particularly spiking prices of food and beverages and hotel operations. Costs were also elevated by the company’s acquisition of WynnBET’s Michigan iGaming business, allowing Caesars to extend its reach in the U.S. Casino market.