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Caesars Entertainment Corp. Chief Executive Mark Frissora will leave the company next year after leading the restructuring of the global casino and resort operator.
Mr. Frissora, who also serves as Caesars president, will remain in the role until Feb. 8, the company said Thursday.
The four members of the compensation and management development committee, as well as the board chairman, will work with a search firm to identify Mr. Frissora’s successor, the Las Vegas-based company said. Mr. Frissora joined the company in 2015.
Under Mr. Frissora’s leadership, Caesars worked to simplify its capital structure and reduce its debt. The company has completed the renovation of about 70% of the hotel rooms across its network, acquired Centaur Holdings LLC’s Indiana casinos in July for $1.7 billion in cash and expanded into Dubai, among other moves. Caesars, which is also the parent of Harrah’s and Horseshoe properties, now operates 49 casinos in 13 U.S. states and five countries.
Caesars also said Thursday it turned down a recent offer from Tilman Fertitta’s Golden Nugget LLC proposing a reverse merger. Golden Nugget proposed that Caesars acquire Golden Nugget’s restaurant, hospitality, entertainment and gaming businesses in exchange for a significant minority stake in Caesars.
Caesars said its board has informed Golden Nugget of its decision, but added that it is “open to reasonable alternatives to enhance long-term shareholder value.”
Shares rose 9.4% to $9.68 in after-hours trading Thursday as the company also reported that it beat analysts’ estimates on earnings for the third quarter.
The company recorded a profit of $110 million, or 14 cents a share, swinging from a net loss of $433 million, or $2.90 a share, a year earlier. The most recent quarter’s results included the former Centaur-owned casinos, and Caesars Entertainment Operating Co., which emerged from bankruptcy in the fourth quarter of 2017.
Net revenue more than doubled to $2.19 billion from $993 million, but missed the consensus forecast of $2.21 billion.
In addition to integrating Centaur properties into the fold, Caesars has been working to expand and promote its U.S. sports-betting business, and it has partnerships with six professional sports organizations. Over the summer, Caesars launched a mobile sports-betting app in anticipation of growth in the business following the U.S. Supreme Court’s decision i nvalidating federal prohibitions on such wagers.
Through Thursday’s close, shares in Caesars are down 21% over the last 12 months.
Write to Aisha Al-Muslim at [email protected]
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