Caesars Entertainment Reports Fourth Quarter and Full-Year 2016 Results

LAS VEGAS, Feb. 14, 2017

Full Year

• Net revenues for Continuing CEC increased 2.8% to $3.9 billion driven by strength in Las Vegas due to favorable hold and improved hotel performance.
• Net loss for Continuing CEC, before including the effect of noncontrolling interest, was $2.7 billion due to $5.7 billion of accruals related to the restructuring of Caesars Entertainment Operating Company, Inc. ("CEOC"), partially offset by a gain of $4.2 billion on the sale of Caesars Interactive Entertainment's ("CIE") social and mobiles games business.
• Adjusted EBITDA for Continuing CEC increased 8.6% to $1.1 billion driven by net revenue increases and efficiency initiatives.
• In January 2017, the U.S. Bankruptcy Court for the Northern District of Illinois approved CEOC's Plan of Reorganization, paving the way for a successful conclusion to CEOC's bankruptcy in 2017.

Fourth Quarter

• Net revenues for Continuing CEC increased 3.0% year-over-year to $949 million.
• Net loss for Continuing CEC, before including the effect of noncontrolling interest, was $435 million compared to a net loss of $39 million in the fourth quarter of 2015 mainly due to a $426 million accrual related to the restructuring of CEOC.
• Adjusted EBITDA for Continuing CEC grew 10.6% year-over-year to $250 million.
• Continuing CEC Cash ADR in Las Vegas was up 5.8% due to increased resort fees, effective hotel yield management and improved pricing power.

"Caesars Entertainment delivered a second consecutive year of solid operational improvement and margin expansion driven by strong performance in Las Vegas, our largest market, and continued productivity improvements. We also generated record full year cash hotel revenues as we renovated over 8,000 rooms domestically since 2014. This year, we intend to deliver additional cash flow and margin improvements while completing CEOC's restructuring. These actions will allow us to continue to generate more value for our stakeholders as we execute against our long-term plan," said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment.

Summary Financial Data

The results of CEOC and its subsidiaries are no longer consolidated with Caesars subsequent to CEOC and certain of its United States subsidiaries (the "Debtors") voluntarily filing for reorganization under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") on January 15, 2015. In January 2017, the U.S. Bankruptcy Court for the Northern District of Illinois approved CEOC's Plan of Reorganization. This is a key milestone that paves the way toward a successful conclusion of CEOC's bankruptcy in 2017.