Business is looking up for Caesars Entertainment (CZR -1.14%). For the first quarter, the Las Vegas-based casino and hotel operator saw an all-time high in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for its Las Vegas segment. CEO Tom Reeg boasted of continued "significant strength across all of our assets" led by the operations in Vegas.

Here's why I am bullish on this casino stock from here.

Vegas and regional segments prosper

Caesars' Las Vegas segment not only set a new record for adjusted EBITDA, but also for EBITDA margin in the first quarter. While Vegas revenue jumped 24%, adjusted EBITDA for the segment popped an impressive 33.3% -- finishing at $533 million. EBITDA margin hit an all-time high of 47%. 

In another company record, Caesars' group and convention segment drove the best EBITDA in company history, also reaching all-time-high convention occupancy during Q1. Convention operations continue to produce promising results, fueled by increasing room nights and robust banquet revenue.

And despite weather disturbances, Caesars' regional segment also posted encouraging results. However, though regional operations delivered 2% revenue growth, the segment ultimately endured a 2% drop in EBITDA year over year.

But excluding weather-impacted northern Nevada, Caesars' regional operations actually produced EBITDA growth last quarter. Recently completed capital improvement projects have already provided encouraging return on investment, according to President and Chief Operating Officer Anthony Carano.

Notable progress on the digital front

Caesars' digital segment finished Q1 nearly flat, amid the added expense of launching sports betting in two new states during the period. Eric Hession, president of Caesars Digital, cited Q1 as delivering "a dramatic improvement in the performance of our digital segment versus the prior year." 

Composed of Caesars' online sportsbook and casino, Caesars Digital drove $238 million in revenue but finished Q1 with a $4 million adjusted EBITDA loss. By comparison, in Q1 2022, Caesars Digital suffered a massive EBITDA loss of $554 million. So the first quarter's breakeven result marks considerable progress, especially considering Ohio and Massachusetts were launched during the period.

Looking ahead

During the Q1 earnings call earlier this month, Reeg affirmed "extraordinary demand" for Caesars' Las Vegas properties in the current quarter. As for regional performance, he hinted that March could produce an all-time record and has observed "continued strength across the portfolio."

Longer-term, after generating $3.2 billion in EBITDA last year, Reeg thinks Caesars could raise that figure to $5 billion by 2025.

The pandemic and ensuing shutdowns caused Caesars Entertainment's long-term debt to skyrocket more than 6 times over from 2019 to 2020. However, as of Caesars' Q1 earnings call earlier this month, the company was on track to pay down at least $1 billion worth of debt this year -- for the third straight year. Reeg anticipates the same in 2024 and 2025 as well.

Why I'm bullish on Caesars Entertainment

I like Caesars Entertainment because the company has delivered on its recent promises. For one, during the fourth-quarter 2022 earnings call in February, Reeg anticipated that Caesars Digital would end 2023 as "EBITDA positive."

Providing an update on that expectation earlier this month, Reeg stated, "I can tell you today, we're already there on a year-to-date basis." And don't be surprised to see an all-time record of some kind or another from Caesars' regional operations in Q2 -- currently the company's biggest revenue-generating segment.

If Caesars Entertainment can keep paying down its debt while ramping up revenue and earnings, don't be surprised to see its stock -- currently 63% below its October 2021 all-time high -- regain lost ground.