Bally’s Corporation has reported a record period for Casinos & Resorts revenue, rising by 11 per cent year-over-year in the second quarter of 2023.
George Papanier, President of Bally’s, described the segment’s customer base as “resilient”, while also adding that it is “pleased” with its overall portfolio performance that builds on a “strong foundation”.
Bally’s makes ‘significant strides’ in Q2
Publishing its Q2 financials, Bally’s declared revenue of $606.2m for the quarter, up 9.7 per cent in comparison to the same period last year (Q2 2022: $552.5m). Gaming revenue amounted to $493.3m (2022: $455.1m), while non-gaming revenue came in at $112.9m (2022: $97.4m).
Income from operations by the end of the quarter stood at only $5.98m, down by 92.98 per cent in comparison to the previous year (2022: $85.3m).
As a result, net income was a loss of $25.6m for the period, in comparison to a positive net income of $59.5m the previous year.
Adjusted EBITDA was down slightly, falling by 5.1 per cent to $130m (2022: $137m), while adjusted EBITDAR rose by 8.7 per cent to $161.4m. Rent expense came in at $31.3m (2022: $11.5m).
Reflecting on the Q2 figures, CEO Robeson Reeves noted: “Bally’s made significant strides this quarter, announcing new initiatives, achieving important project milestones, and building on our strong foundation for 2023 and beyond.”
New record for Casinos & Resorts
Taking a look at each segment, Casinos & Resorts achieved record revenues of $333.2m, an 11.1 per cent improvement YoY (2022: $299.9m) and it is expected to keep on delivering throughout the remainder of the year as new locations are opened.
The segment generated a net income of $26.7m (2022: $70.8m), an adjusted EBITDAR of $111m, and an adjusted EBITDA of $79.7m (2022: $88m).
International Interactive revenue was described as “solid” by Reeves, rising by 5.6 per cent to $247.8m when compared to the same period last year (2022: $234.6m). The segment was supported by the operator’s UK business, which rose by 11.5 per cent YoY.
The International segment produced $35.5m in net income (2022: $42.5m) and $84.6m in adjusted EBITDA (2022: $82.6m).
North America Interactive revenue rose by 40 per cent YoY to $25.3m (2022: $18.1m), benefiting from New Jersey operations and a launch in Pennsylvania. Reeves also noted that Bally’s is looking forward to the launch of the Rhode Island market in March next year, where it will be the sole provider of igaming.
Bally’s has also made “significant progress” in the transition from Bally Bet to the Kambi and White Hat technology platforms, which is expected to be rolled out later this summer.
Despite the revenue gains for the segment, net income is still at a loss, falling to a $35.5m loss (2022: $24.8m loss). Adjusted EBITDA also came in at a loss of $17.7m (2022: $20.9m).
During the quarter, Bally’s also announced a deal with the MLB’s Oakland A’s for the construction of a new stadium on a portion of the Tropicana Las Vegas location.
Papanier noted: “Our core Casinos & Resorts customer base remains resilient. While we are keeping a close eye on spending trends and the health of the consumer generally, we are pleased with how our overall portfolio is performing, with significant year-over-year revenue growth and margin expansion.
“We are looking forward to the opening of our Chicago temporary casino in September and the unveiling of our property redevelopment in Kansas City as well. Importantly, our portfolio’s near-term capex cycle has peaked as our Twin River Lincoln project was completed in late April, as will the Chicago temporary casino and Kansas City expansion projects through this quarter.
“We expect to be mining the returns from those expansion plans in the back half of 2023, particularly in the fourth quarter.”
2023 guidance
Looking ahead, Bally’s has stated that its revenue guidance will remain in the range of $2.5bn to $2.6bn and adjusted EBITDAR in the range of $665m to $700m.
The range takes into account improved Casino & Resorts and International Interactive performances, as well as a new range of $50m to $60m of Adjusted EBITDA losses in North America Interactive following investment in the region.
Rent expense guidance stands at $125m, while capital expenditure guidance is currently $160m.
