Caesars Entertainment falls after its Las Vegas and regional properties can’t keep up with last year’s pace

Caesars Entertainment (NASDAQ:CZR) fell in postmarket trading on Tuesday after falling short of consensus estimates with its Q3 earnings report.

Revenue fell 4.0% year-over-year to $2.87 billion. The Las Vegas and Regional segments both saw revenue decline from a year ago, while the Caesars Digital segment saw a 41% increase and turned a net income profit of $11 million for the quarter. Adjusted EBITDA was reported at $1.00 billion, vs. $1.04 billion consensus.

“Results in Las Vegas reflect record third quarter hotel, F&B and banquet revenues driven by strong occupancy and cash ADRs,” stated CEO Tom Reeg. “Regional segment operating results were negatively impacted by new competition, construction disruption and difficult comparisons versus the prior year,” he added.

Separately, Caesars Entertainment (CZR) announced the closing of the previously announced sale of its intellectual property rights for the World Series of Poker brand to NSUS Group. As previously disclosed, the transaction includes$250 million in cash and a $250 million promissory note secured by the WSOP intellectual property assets being sold. Caesars retains the right from NSUS to host the flagship WSOP live tournament series at its Las Vegas casinos for the next 20 years and will receive a license from NSUS to continue operating the recently upgraded WSOP Online real-money poker business in Nevada, New Jersey, Michigan, and Pennsylvania for the foreseeable future.

Shares of Caesars (CZR) fell 2.97% in postmarket trading to $43.88 vs. the 52-week range of $31.74 to $50.51.