Caesars Entertainment Corporation (NASDAQ:CZR) Q1 2020 Earnings Conference Call - Final Transcript
May 11, 2020 • 04:30 pm ET
two parts: January and February, and then the month of March. For the first two months of the quarter, we posted our best operating performance since 2008, reaffirming our success in executing our strategic initiatives and our strong momentum prior to the emergence of COVID-19. Net revenue through January -- sorry, through February was up 12% year-over-year, driven by increases in all verticals across all regions, highlighted by strength in Las Vegas and Indiana. Adjusted EBITDAR for the first two months of the quarter increased 28.7% year-over-year, demonstrating the operational discipline and efficiency that we've established.
However, circumstances changed dramatically in March with the stay-at-home orders and the temporary shutdown of our network, causing net revenue for the month to come in 56% lower than the prior year. While our properties were only open for part of the month, costs in markets were generally in line with the prior-year as we took steps to support our team members, as Tony discussed earlier. As a result, Q1 adjusted EBITDAR declined 46.3% to $302 million or a 49.5% decrease on a hold-adjusted basis, outpacing the 13.6% drop in revenue to $1.8 billion. Looking at results by segment.
Performance in Las Vegas was off to a strong start in Q1. Net revenue and adjusted EBITDAR reached all-time highs for the first two months of the quarter, with net revenue increasing nearly 10%, driven by growth across all business verticals and adjusted EBITDAR rising 20% year-over-year. Temporary property closures over the last 15 days of the quarter, however, led to declines in gaming, hotel, food, and beverage and other revenues, resulting in a 13.9% year-over-year decline in Las Vegas net revenue to $822 million. We saw a significant increase in cancellations of hotel and convention reservations during the quarter due to the property closures.
Q1 occupancy decreased to 77.5% from 95% in Q1 2019 as March occupancy was less than half the prior year. While room rates fell just 1.4% year-over-year, the drop in occupancy drove a 19.6% decline in Q1 RevPAR to $120. Las Vegas adjusted EBITDAR totaled $217 million, down 39.7% year-over-year or down 43% on a hold-adjusted basis. Turning to the Other US segment. Q1 net revenue totaled $874 million, down 13.5% year-over-year, while adjusted EBITDAR decreased 50.2% to $116 million or down 51.3% on a hold-normalized basis. Prior to the temporary network shutdown, we saw robust growth at our regional properties in the first two months of the quarter, with net revenue up nearly 15% and adjusted EBITDAR increasing almost 40% year-over-year. Through February, we experienced strong gaming revenue growth in Indiana and Iowa as capital projects came online including our new sportsbooks, the addition of table games at Harrah's Hoosier Park in Indiana Grand, and our new Southern Indiana land-based property, which opened in December.
Our All Other segment, which includes unallocated corporate expenses, CIE-managed properties, and our international operations net revenues totaled $132 million in Q1, down 12% year-over-year primarily due to decreases in volumes at our international