Caesars Entertainment Shares Up as New Details of JV EmergeMd Noman Siddique (Author) Published Date : May 30, 2014 01:28 IST
Shares in casino operator Caesars Entertainment (CZR) rose on Friday after fresh details from its previously announced joint venture made their way onto news websites. Shares in the Las Vegas-based company were up 2.14% to $18.65 around noon Friday. The joint venture - known as Caesars Enterprises Services, LLC - is between three entities: Caesars Entertainment Operating Company (CEOC), Caesars Entertainment Resort Properties LLC (CERP), and Caesars Growth Properties Holdings (CGPH). According to an SEC filing made on May 21, CEOC will own 69% of this JV, while CERP and CGPH will own 20.2% and 10.8%, respectively. Under an Omnibus Agreement, the filing went on to state that CEOC, Caesars License Company, LLC (CLC), Caesars World, Inc. (CWI) and subsidiaries of CEOC that are the owners of CEOC properties, would grant Caesars Enterprises Services, LLC a non-exclusive license to all intellectual property. This would include all intellectual property related to the Total Rewards program. On May 7, Caesars Entertainment published its Q1 2014 results, showing consolidated casino revenues declined $128.3 million, or 8.6%, compared with the 2013 quarter. The company attributed this to the impact of severe weather, increased regional competition and continued softness in the domestic gaming market in certain U.S. regional markets outside of Nevada, as well as the reduction of revenues resulting from the partial sale of the group's Conrad Punta del Este casino in Uruguay in the second quarter 2013. Other revenue increased $52 million, when compared with the 2013 quarter, primarily due to the growth of social and mobile gaming business in CIE and increased entertainment revenues in Las Vegas, according to the first quarter 2014 results.
Caesars Entertainment Shares Up as New Details of JV Emerge