Hello and welcome to today's webcast. My name is Anita [ph] and I will be your facilitator today. All lines have been placed on mute to prevent any background noise. And please note that today's webcast is being recorded. During the presentation, we'll have a question-and-answer session. We will be taking questions via the phone line and instructions on how to do so will be given at the appropriate time. [Operator Instructions] It is now my pleasure to turn today’s program over to Jacqueline Beato, Senior Vice President of Finance and Treasurer for Caesars Entertainment. Jacqueline, the floor is yours.

Thank you. Good afternoon and welcome to the Caesars Entertainment Second Quarter 2015 Results Conference Call. Joining me today from Caesars Entertainment Corporation are Mark Frissora, Chief Executive Officer; and Eric Hession, Chief Financial Officer. A copy of our press release, the earnings presentation slide and a replay of this conference call are available in the Investor Relations section on our website at caesars.com. The slides are available for download on the Events and Presentation section and will accompany Mark and Eric's prepared remarks for those of you on the phone they would like to follow along. Also, please note that, prior to this call, we furnished on Form 8-K a copy of this afternoon’s press release to the SEC. Before we get on our way, I’d like to call your attention to the following information on Slide 1 through 4. The Safe Harbor disclaimer in our public documents covers this call and the simultaneous webcast at caesars.com. The forward-looking statements made during this conference call reflect the opinion of management as of the date of this call. There are risks and uncertainties with these statements, which are detailed in our filings with the SEC. Please be advised that developments subsequent to this call are likely to cause these statements to become outdated with the passage of time, but we do not intend to update the information provided today prior to our next quarterly conference call. Today, we are reporting second quarter 2015 results. These results are not necessarily indicative of results in future periods. In addition, today's call will include non-GAAP financial measures, including property EBITDA, adjusted EBITDA and certain supplemental financial information. Reconciliations of net income and loss to property EBITDA and net income and loss to adjusted EBITDA can be found in the tables of our press…

Thank you, Jackie. I am pleased to join today’s call as President and CEO of Caesars Entertainment. Before I turn it over to Eric to review the details of our quarterly results, I would like to share my early impressions of the company and the opportunities that I believe lie ahead. Unless indicated otherwise, my comments relate to Caesars system-wide including our deconsolidated subsidiaries CR. Starting on Slide 6, as I briefly mentioned on our last call since joining Caesars in February, I spent much of my time learning about the business, meeting with the leadership team and visiting properties across the network. I am encouraged by what I have found thus far and we believe we have a solid foundation which to grow and to further transform Caesars in to the world’s promenade entertainment company. Over the coming months, the senior leadership team and I will continue our strategic review of the business and together develop a strategy to drive growth and enhance performance for the near and longer term. While we have not yet completed this process, I can assure you my focus will on identifying opportunities to enhance growth, EBITDA margins and cash flow all the while keeping employee and customer satisfaction high. Taking together, our focus on these priorities will play critical role on improving all stakeholder returns. Our opportunities to strengthen performance range from initiatives that require minimum capital investment such as improving supply chain management or growing the number of active total rewords members to more intensive projects which could include investments in backend infrastructure and technology to yield greater efficiencies or expanding hospitality segments in destination markets. I would expect investments in Las Vegas room product which will drive cash ADR growth to be among the fist and highest priorities. I have no…

Thank you, Mark. I’ll first start with continuing CEC’s consolidated results for the second quarter followed by a review of the company’s reportable segments and then discuss the supplemental information we have provided on our website which included CEOC’s second quarter performance as well as continuing CEC plus CEOC’s results. Slide 13 summarizes continuing CEC’s results which do not include our deconsolidated subsidiary CEOC. For the second quarter of 2015continuing CEC net revenues increased 17% to $1.1 billion with a 56% increase in adjusted EBITDA to $347 million. As previously discussed, top line improvements were attributable to the openings of Horseshoe Baltimore and the Cromwell and the renovation of The LINQ Hotel, organic growth in the interactive entertainment business and strong hospitality performance. Review improvement marketing and operational efficiencies, favorable year-over-year hold as well as strong hotel and F&B margins led to the year-on-year improvement in EBITDA with margins expanding 747 basis points. Excluding Horseshoe Baltimore and the Cromwell, same store net revenues increased 9% and adjusted EBITDA increase 51%. Moving to Slide 14 and Caesars Entertainment Resort Properties which is comprised of six casino resort properties largely located in Las Vegas as well as The LINQ promenade. Serve delivered revenue in the second quarter of $566 million an increase of 5% year-on-year. Performance was largely driven by higher gaming revenue and hotel revenues. The growth in gaming revenues was due to increases in slot revenue and favorable year-over-year table hold largely at Paris. Hotel revenue increases were attributable to 10.5% increase in cash ADR mainly from resort fees. Adjusted EBITDA increased 42% year-on-year to $182 million and margins expanded by 836 basis points due to a higher cash mix in hotel and F&B outlets, efficiencies in marketing and labor and favorable hold. Favorable hold at serve contributed approximately $8…

Thank you, Eric and please turn to Slide 22. Overall the second quarter was a continuation of a positive first quarter results, while gaming volumes continue to be mixed across the system, much of this itself and dos as we take actions to drive profit improvement. In particular, reductions and free slot play incentives have lowered reported gaming volumes but enhanced overall profitability. On the CERP side, hospitality amenities continue to perform quite well. Coupled with cost saving initiatives, we delivered strong margin expansion especially at our Las Vegas properties. For the second consecutive quarter, we achieved the highest property EBITDA margins for owned and managed CERP properties combined. Management will continue to be focused on retaining our industry leading margin percentage. As you know we had delivered these results despite CEOC’s bankruptcy proceedings. The restructuring of CEOC remains a fluid process and we will continue to provide updates on developments as appropriate. I know that the restructuring process in the state of our discussions with various creditors the topic of interest on everyone’s minds. However, given the ongoing negotiations proceedings, we will not be answering discussing questions of this nature during today’s Q&A session. Slide 23 is our outlook page. As far as industry trends, though the industry is showing modest to low growth, which is better than what we’ve seen over the last five years, we are far from peak levels. Hotel, food, beverage and entertainment revenues in Las Vegas continued to be a strong point with the hotel rate environment being a particularly bring spot. On the gaming front, slot gaming volumes in the regional markets are still not as strong as Las Vegas and we are exploring how to improve slot performance as we think about the development of our strategic plan. We will have more…

[Operator Instructions] Your first question comes from the line of Susan Berliner from JPMorgan. Your line is open.

Hey, good afternoon.

Hey, good afternoon.

So I wanted to start with I guess your commentary Mark on July. I was wondering if you could talk about gaming and I guess on a - I guess apples-to-apples comparison because I know some of the comps which is the regional markets were easier, when you are talking about July, you are seeing any notable increases besides is your comps from last year?

We saw sequentially from June to July and improvement in July in general and we saw an increase year-over-year in pretty much all markets. So is that answer your question?

Sure. And then just with regards to the resort fees, I guess Eric, can you remind us when those were implemented last year?

So it’s two drivers see that are causing the increase, one is that we’ve expanded the number of our segments that book into the hotel that receive fee and then in addition we had increased our resort fees in January, so we had actually implemented them broadly prior to that.

Okay, great. And then was there any change I guess companywide or any of the entities with regards to maintenance CapEx?

No. No change with respect to maintenance CapEx.

Okay and I guess will just see that in the various SEC filings REIT entity? And that’s you have -

Are you talking about total CapEx or the specially made?

Yeah, specific to Q2 CapEx or you asking about the range of the expected CapEx?

Both actually.

Yeah, so for - I can give you that, now for Q2 CEOC spend 37 million, this is total CapEx. CERP spent 50 million, CGP spent 70 million and CES spend 6 million. As I mentioned earlier, the full year estimates are unchanged and we continue to be pacing well to hit all those ranges we previously provided.

Great and just a couple other follow-ups, I guess with regards to the AC convention center, I think you said you are 30 million less but I know if there is reimbursement coming from the state?

Yeah, Susan, I think we talked about how it works for forbid a prorate reimbursement from a spent that we spent the CapEx first and so that process continues throughout the build.

And Jackie, is there any amount that you expect to get back in 3Q or 4Q that you could provide to us?

No, we don’t have specific estimates on when we are going to get those.

Okay and then just on the CGPH side, the project CapEx spent there for the LINQ and what’s remaining there?

We - as you know the LINQ is open at this point, so we are basically paying invoices related to the project that have come in delayed behind when the assets put into service. We have approximately $25 million left that we anticipate coming in on that project.

Great and if I could sneak one and you guys didn’t talk about the performance of the LINQ and I was just wondering if you could talk about that at all?

Yeah, so we’re still very pleased with the response we are getting, the experience is great for the real the feedback we get from the customers is very positive. In prior periods we did breakout the actual EBITDA performance because it was new asset but now that we’ve annualized it and it’s been reflected in both periods. We haven’t been breaking it out and we don’t plan to going forward.

Great, thank you very much.

Thanks.

Your next question comes from the line of David Farber with Credit Suisse. Your line is open.

Hi guys, good afternoon. How are you?

Hi David.

Hi Mark - for the conference calls, I had a couple of questions, first I wanted to just tackle CERP for a minute, the margin was again better than we had expected which is promising. I am just curious what is driving that, you know at two quarters now at the 30, so what’s driving that and then what are your expectations for CERP margin into the back half? And then a couple of follow-ups, thanks.

So in general, our margins are being driven by marketing efficiency, if you will we’re getting much better at identifying customers that are profitable in those at we give things away that we probably shouldn’t because it doesn’t make sense, we are not driving incremental volume. So those efficiencies are helping out a lot. And then also our labor productivity in operations is a significant improvement year-over-year hence driving 10s of millions of dollars of improvement in the operating results. And then in terms of sustainability, we believe that all of this is sustainable, these margins are sustainable and that we’ve got other incremental projects and today that will continue to drive this kind of productivity improvement as well as we think the marketing efficiencies will continue as well.

Okay, that’s helpful. And then just following through that, if in fact we are able to see sort of better margins into the back half, what would you intend to do with the incremental free cash flow, you sort talked about projects, I am curious specifically on LINQ or CERP in general, would you use the free cash flow for what projects and would pay down potentially if that something to be curious, or excuse me, interested doing on the CERP side?

David, I’ll take the first half and then Mark can feel free to jump in on this if I miss anything. But - you’re right at the entity we’ll start to generate significant free cash flow as we continue to move forward. As we talked the assets in this portfolio consist of some rather large hotels. We mention that we think the returns from renovating those rooms are quite appealing right now, particularly in Las Vegas and also in Atlantic City with respect to the new convention center coming on. And so we are starting to evaluate which hotel tower to renovate and what sequence to maximize the returns. I think you’ll see starting a renovation at a hotel tower Paris here in Las Vegas shortly. And then as we move into next year, we’ll evaluate some other hotel towers as well. In combination with that we’ll evaluate the potential to pay down the remaining balance on the revolver as well. So it’s going to be a balancing effort based on the results and where we see the best opportunities.

Got it. Okay, that’s helpful. And then CEOC side of the house, we’re not six months into the year, just curious sitting here today with the outlook you talked about, how do you feel about the plan EBITDA you set up in the beginning of the year, is that attainable, is it reasonable or is it potentially too conservative, any thoughts around that and what you see for the balance of the year for CEOC? And then I have one other, thanks.

I mean on our remarks, we pretty much said that we expect to meet or beat our expectations. In terms of any other color it’s about the best I can do because out business has obviously some inherent volatility goes into the luck components the whole component and so we want to make sure we’ve giving you numbers then expectation you count on.

Okay, understood. And then just sort of the as an operator all the three larger segments, I am just curious from the day-to-day and may this question is for Eric if he can help, what sort of reliance you might have on the parent company, any thoughts around there if you could help us and are there any issues legal issues that could impact surplus growth with respect to the parent or thoughts around that would be helpful? And that’s it, thanks.

So, David, I’ll just remind you that the parent is essentially a holding company. It has the three end primary asset that it owns is a 100% of CERP, it consolidates CGP and then as 89% ownership in the COEC which is deconsolidate. So that’s about all the we can say, there is no real assets, there is no properties, there is no suppliers. Yeah so the point is it’s just a holding company. So it’s - other than that there is nothing significant.

Okay, very good, thanks for the time.

Thanks David.

[Operator Instructions] Your next question comes from the line of Kevin Coyne with Goldman Sachs. Your line is open.

Good afternoon. Thanks for taking the questions. Just had a follow-up just Sue’s question, did you say July was better than June or did you say it was better than the second quarter trends?

I think it’s in general probably let’s see I would June for sure and I wouldn’t say broadly the second quarter because as you May was kind of blowout for everyone in the industry because of the fight that was here in Vegas.

Okay, that’s fair. Just a quick question on baccarat play, would you say are people still coming to the market and just not spending at the level they did in the past or have people just completing start coming? And second part of that question is what indicators are you looking for over the medium to longer term as potential leading indicators to a return of that business or is some of that potentially permanently gone?

Some extend year-over-year there is a tough comp, so we should understand that begin. But secondly I think you know we expect the business to begin to slowing come back to historic levels as the issues that surrounding what’s going on in China the premier stands on gambling in general lighten up and we’ve had a lot of as you know kind of different thing that have occurred within Vegas in terms of regulations and tighter environments here and I think that also make sometimes the larger gamblers in China a little to come. So there is a lot of different drivers. In general, the whole industry experiencing this so we are not unique to the industry how we feel that we are doing awful a lot to make sure we market ourselves as one of the top Asian play houses with Caesars and plan at Hollywood and Paris and a lot of the facilities that we have for the billers that we have within the strip itself. And we are also able to leverage our big network and New Orleans, Atlantic City were some of that play as well.

Great, maybe just a question on status of let’s say room renovations in terms of how many room were offline this quarter versus the first quarter and versus a year ago, maybe Eric or Jackie can comment. And perhaps when you’ll see those rooms go back to a normal cadence of being offline?

Yeah, so Kevin, as you know we had a major renovation going on as a link and room started to come back online in October of last year and they fully came back online early in the second quarter. And so you would have seen during both the fourth quarter and the first quarter some significant room outage particularly at that property. As we move forward, again you’ll see some construction disruption from room renovation but we are planning to stagger the room renovations to ensure that we don’t have a significant number of hotel rooms out at anyone times such that they would materially impact the operations. And as I mentioned when we do analysis in terms of the returns from these projects we take into account the potential disruption from having the rooms out and we still believe these are extremely higher term projects.

Great, just one final on the 250 to 300 million of projected cost savings, would - give an update in terms of how much progress you’ve made on reaching that goal to date?

I think we try to steer clear giving projections on it but we feel bullish about how well we’ve done year-to-date and what we’re likely to do by the end of the year. So the best I can tell you at this point.

Okay, thank you.

Your next question comes from the line of Susan Berliner with JPMorgan. Your line is open.

Hi, I apologize, I just had a couple of follow-ups both actually on the CGPH side, I was wondering if you could reconcile the actual EBITDA for the restart to grow?

Reconcile it to what.

It just seems that the Caesars’ press release had a number in the CAC press release has a number for casino properties and then you put in EBITDA for I guess Baltimore and Cromwell and it just seems that people are coming up a little bit variation, so I just was wondering if you could confirm is it like 82 million?

So Sue I think it’s a breakout of the segment is different between the two press release, so the CAC press release has in other segment. I think if you look the Caesars press release CGP is in two segments that’s in CIE and then everything else. So if we take the other segment and the casino property segment from CAC press release they should match our press release. I don’t know if that reconcile that difference for you.

I think so, okay. And then just one quick follow-up on New Orleans, I know Eric you talked about contemplating doing something there and I guess I was wondering why way those just a function of drawing our plans to try to figure out exactly what you are going to do?

Yeah, we’re not waiting obviously, we are doing everything we can to offset the impact of the decline in revenues and we are being as aggressive as we feel as prudent in terms of both from marketing changes as well as operational changes. But in terms of the construction related items, it’s exactly as you noted we have to make sure that we think through what we want to do from a design perspective and then get the appropriate permits and construction process.

Okay, great, thank you very much.

There are no further questions at this time. I will turn the call back over to presenter.

That’s all at this point. Thank you so much for joining our call.

Thanks again for joining us today. This concludes our webcast. You may now disconnect. Have a good day.