Name: How Caesars is Channeling New Investor Confidence into Long-Term Growth
Uploaded: 2017-10-26
Duration: 5 min 34 s
Description: With stocks surging more than 40% this year, Caesars makes clear its plans for global expansion.

[ MUSIC ] [ SOUND ] [ APPLAUSE ] Mark, what a milestone day for Caesars Entertainment. It's finally out of bankruptcy and you're celebrating here at the NASDAQ. So now what happens? Where does Caesars go from here? Well really excited because now we can grow, we have a balance sheet, a strong balance sheet and we're looking at MNA activity we think there is an awful lot of opportunity out there, we haven't participated in for roughly 7, 8 years. In addition to that there's development opportunities in the world. We think we've got a pretty good anchor with Japan. Brazil and there's a lot of other opportunities that we're excited about. You talk about growth, where is growth gonna come from. I mean, we've seen over the last couple of years on the Las Vegas strip, that the gambling revenues have been on a decline. For us anyways, right now on the strip we're actually growing our revenues on gaming and we're doing that with a lot of new games That we brought on the floor more social interaction type of games. We like to be first to market on that. Plus e- sports is something that we've really rallied our whole organization around. That last thing I'll just mention in terms of growth, we have 98 acres of underdeveloped, underutilized land center strip. And so the Strip itself as you know everyone kinda comes to the middle. So that's a really great traffic. And we've already announced that we're gonna build a convention center behind the Linq Wheel. It's the High Roller Wheel. And that the convention center will add a lot of jobs to Strip. And then there's a lot of land right in front of Caesar's Palace, right on Las Vegas Boulevard. We're gonna activate that land pretty quickly. So a lot of exciting plans. A lot of building to go on that will drive growth for us in Las Vegas. You mentioned about acquisitions, you said you're interested in that. You've got plenty of cash, $ 2 billion. What kind of acquisitions are you looking for. There's a lot of regional casino company that are in the market today. Some of them don't have great brand names. So when we go in and take over one of those, we automatically get a lift in revenue of maybe 10 to 15 % with the Cesar's name. How far are off are you from starting that acquisition process. We're active and we're- So you're looking now? Yes, uh- huh. Have you identified any properties that you are ready to move? No, we can't talk about any of our acquisitions, but we can tell you that we're active. And there's lots of properties in the market. Usually, this time of year and And in the beginning of the year you get a lot of properties that will come on, and since we're new and everyone knows we gave cash, a lot of properties just recently came onto market waiting for us. What about expanding an International Markets. A lot of your competitors have gone it [ UNKNOWN ] where business has been very good. But I don't know, is it too late for ceasers to play catch up there. Yeah, Macaw really is a special place. And the licenses are all locked up. However, we do have a development project in Incheon, Korea. And that'll break ground 2020. and that's a big, big integrated resort on the China Sea. So we're excited by that. We also will be branding an awful lot of our brands like Caesar's Palace in Asia. So once we put that brand out there with a hotel or an entertainment center, we end up getting total rewards membership, and that gives us an Asian presence that will be helpful. So this all sounds very exciting Mark, but how might the Las Vegas shooting incident impact your plans? Well it's a tragedy. And the impact of Vegas I think is de minimis. I think because it was a random shooter, wasn't an act of terror that's helpful in terms of the way people view it. I think in terms of the business side of it I believe that we will rebound nicely. We've already seen some rebound and we expect Probably by the end of year, I think this thing will just pretty much peter out. Well what has been the feedback from consumers, are they staying away for now? Well I think for the first couple weeks, there were some people who cancelled plans, and cancelled some of their meetings. However, the meetings going out the next couple months are There have been no cancellations and it's very strong so, meeting, planning looks very good right now .>> So what's been the key lesson you learned from this tragic event ?>> Well, we just need to make sure that we put in enough equipment that we could spot any kind of arms being brought in to our hotels. I think that's something that, Pretty much the whole strip everyone is looking at. And they're gonna be doing, putting in technology that allows us to spot that, and do it in a way that's full proof. Let's talk a little bit about technology and innovation. There's always new technology that is bringing a new generation of gamers. What is Caesars doing about all of that? Well, we're developing what we call a casino of the future. Just trying to change the entire dynamic on the game floor. Where everyone feels like they're part of everyone else, everyone's connected. And so you have this great energy and great vibe any time you'd walk into a Caesar's Palace. So a year or two from now, what are people gonna be saying about Caesar's entertainment? How are they gonna describe your company? I think they will describe us as a very innovation and fast growing company. We are going to be licensing our brands all over the world. We have never done that before. We are going to be changing the inside of our casinos so that they are more exciting as I said to you earlier Much better vibe inside, energy inside and I think everyone will be impressed with the energy, the innovation and growth. 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How Caesars is Channeling New Investor Confidence into Long-Term Growth

Finance

With stocks surging more than 40% this year, Caesars makes clear its plans for global expansion.