Bally’s Corporation’s inbound CEO, Robeson Reeves, has expressed his disappointment in an ‘unacceptable’ yearly performance across its North American interactive division
As the US operator published its preliminary results for 2022, it revealed a net loss of $428m throughout 2022 across the North American interactive unit; Bally’s yearly statistics for its US-facing online division has lost over 10 times more than the $36.9m it had lost in 2021.
Cost increases are at blame for the company’s losses, as revenues saw an increase of 112 per cent year-over-year, reaching $81.7m in 2022.
Reeves cut to the chase in his comments on the company’s preliminary fourth quarter and full year 2022 report, stating: “Simply put, our North America Interactive results in 2022 were unacceptable.”
In a move that aligns with Bally’s Interactive performance, the entertainment company recently announced a restructuring plan for the division. As a part of several cost-cutting measures to regain some of the financial losses, the operator laid off 15 per cent of its employees.
“As part of the restructuring, we are evaluating multiple options”Robeson Reeves, Bally’s Corporation’s inbound CEO.
Reeves continued: “In response, through our announced restructuring plan of the Interactive business in January, we are taking a deep dive in our approach to North America to ensure that investments we make in sports have a near-term path to profitability. In icasino states, we continue to take share in New Jersey and Ontario as we integrate this business in a scalable way.
“As part of the restructuring, we are evaluating multiple options, including leasing technology structures that integrate quickly and effectively with our world-class icasino and marketing tech stacks. We also expect our restructuring efforts to drive benefits in our International Interactive segment.”
The report published total recorded revenues of $2.26bn, with the majority of divisions performing as expected, including the international interactive section.
This International Interactive division saw a sizable increase of 275.4 per cent as revenues rose to $946.4m, while recording a net income of $77.3m and adjusted EBITDA of $321.7m.
Turning over $1.234bn in 2022, Bally’s Casino and Resorts division saw an increase of 18.7 per cent YoY. It also made a net income of $182.6m and adjusted EBITDA profit of $345.6m.
George Papanier, Bally’s President of its Casinos & Resorts division, stated: “Casinos & Resorts saw continued momentum across the portfolio as we welcomed new spa amenities in Lincoln. Additionally, we broke ground on the temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023. Though it generated an expected loss during a slower fourth quarter, Atlantic City continues to progress and we expect the property to be profitable in 2023.”
Despite these positive highlights, the performance of its North American Interactive division will dominate conversation as the company heads towards the release date for its earnings call and full audited results on February 23.
Reeves added: “As our businesses continue to integrate, we are pleased to achieve record results in both our Casinos & Resorts and International Interactive segments. Our core businesses are generating fantastic cash flows.
“UK revenue grew 12% organically in the fourth quarter as regulations continue to play through, while in December, Asia saw positive year-over-year organic growth, proving that our initiatives to maintain a competitive advantage in that market are effective.”
“I’M HOnoured to lead bally’s”Robeson Reeves, Bally’s Corporation’s inbound CEO.
Reeves’ appointment as CEO will also be a topic of discussion, following the departure of outgoing CEO Lee Fenton.
Fenton had maintained a position as CEO of Bally’s since October 2021, after the company acquired Gamesys Group of which he had been CEO since 2015.
Upon stepping down, Fenton will relinquish his position on Bally’s Board of Directors as Reeves takes on full executive leadership, effective March 31, 2023, stepping up from his duties as the President of Bally’s Interactive division.
Fenton stated: “Bally’s is an extraordinary business with extraordinary people, and I want to thank each and every one of them for the support they have shown me and the commitment they continue to bring to the business.
“It is particularly special for me to be able to hand the reins to Robeson with whom I have worked for over 14 years. Robeson is a unique talent and the time is right for him to lead Bally’s.”
Reeves had also previously worked for Gamesys before Bally’s acquisition, holding several leadership positions since he joined in 2005, namely as its Chief Operating Officer since 2015 after his promotion from Director of Gaming Operations.
Commenting on his appointment, Reeves noted: “I am honoured to lead Bally’s and grateful for the support and confidence shown in me by my fellow Board members.”
“We are a unique company with a robust core and an extraordinary set of opportunities ahead of us. I look forward to working hard with my Executive Team and all our teams to take those opportunities and maximise our growth.”