Caesars Entertainment saw trading of its stocks halted this week, following the company’s second quarter conference call. During the call, company executives stated that demand in Las Vegas was slowing slightly and that expectations should be lowered. This didn’t appear to sit well with investors, who were scared off by the comments.
Caesars Entertainment saw trading of its stocks halted, following comments made concerning lower demand in Las Vegas.
Comments Spark Halting of Caesars Entertainment Trading
Following the statement, Caesars Entertainment saw its stock price plummet. This forced NASDAQ to suspend trading on Caesars stock three times during the course of Wednesday, due to the high volatility. The share price dropped by as much as 24% before it ended the day’s trading at $9.63 a share, which equalled a 14.8% loss. The CEO of Caesars Entertainment, Mark Frissora, had to go into damage control.
In an interview, he attempted to convince shareholders that the market was overreacting to the comments made. He clarified that Caesars had a very good second quarter and many people had expected the company to raise its expectations for Q3. However, Caesars did not do so due to several factors that will likely influence Q3 performance.
Softening Demand Not a Cause for Concern, says Caesars Entertainment CEO
The main issues behind the lower expectations for Q3 relate to fewer events happening in Las Vegas. In Q3 2017, there was the much-anticipated boxing match between Floyd Mayweather and Conor McGregor. That one event saw hotels in Las Vegas booked to capacity. There are no such events happening in Q3 21018 that are expected to draw such huge crowds. When looking at just the T-Mobile Arena, where the fight was held last year, there will be 29 fewer events than Q3 2017.
Frissora attempted to make it clear that the lower demand was not a weakness in the Las Vegas market, but rather just an issue with Q3 events. He stated that there is no reason to panic because people think Las Vegas is losing its charm. Frissora also went ahead and stated that he believes Q4 will be much better, as there are more events planned during that period.