Bally’s Corporation has celebrated a record company-wide revenue amount in the third quarter of 2023, with CEO Robeson Reeves noting that “solid operating results” were achieved across all three business segments.
The company has stated that the record amount was helped along by new highs in casino & resorts revenue, while international interactive underwent improvements in comparison to the previous year as well, following gains in the UK.
Bally’s International interactive up thanks to UK gains
Publishing its Q3 results, Bally’s reported a company-wide revenue record of $632.5m, up 9.4 per cent year-over-year (Q3 2022: $578.2m) as gaming revenue increased to $508.9m (2022: $465.7m). Non-gaming revenue improved too, reaching $123.6m (2022: $112.5m).
Per segment, casino & resorts revenue rose by 9.3 per cent YoY to a new high of $359m (2022: $328.5m), assisted by the successful opening of the operator’s Chicago Temporary Casino in September.
Meanwhile, international interactive revenue increased by 7.2 per cent YoY to $243.9m (2022: $227.6m) “driven by a 13.1 per cent increase in the UK as market share gains continue”.
Reeves noted as well that the operator’s “timely adaptations in response to regulatory changes” in the UK have helped the international interactive segment perform well in the quarter.
“Bally’s continued to generate very solid operating results across all three of our business segments.”
Bally’s CEO Robeson Reeves
Elsewhere, North America interactive revenue improved as well to $29.6m (2022: $22.1m).
Reeves stated: “Bally’s continued to generate very solid operating results across all three of our business segments as revenues rose to $632.5m, a 9.4 per cent year-over-year increase, while also achieving significant development and project milestones.
“These included the highly anticipated opening of our Chicago Temporary Casino as well as the completion of our reconceptualized Kansas City redevelopment. Additionally, we successfully rolled out our new Bally Bet OSB app, strengthening our solid foundation as we approach 2024.”
Reeves continued: “Our formula of increasing average revenue per user and first-time depositors, while reducing cost per acquisition, is yielding positive results. Our Bally Bet rollout will continue in the fourth quarter, and we are extremely pleased with the user engagement and the technology integration.”
Net loss
While revenue was positive for Bally’s, the operator suffered a consolidated net loss in Q3 of $61.8m (2022: $593,000) and generated an adjusted EBITDAR of $173.2m and adjusted EBITDA of $141.6m.
Per segment, casinos & resorts generated an adjusted EBITDAR of $118.2m, including straight-line GAAP rent expense of $31.6m, while international interactive produced an adjusted EBITDAR of $85.5m, up 12 per cent YoY (2022: $76.3m).
However, the North America interactive segment reported an adjusted EBITDAR loss of $17.6m (2022: $19.7m loss).
Year-to-date, net income stands at $90.9m with adjusted EBITDAR of $492.2m and adjusted EBITDA of $398m.
2023 guidance update
Looking ahead, Bally’s is adjusting its revenue guidance for the remainder of the year from $2.4bn to $2.5bn with an adjusted EBITDAR guidance range from $640m to $655m.
The operator noted that the change is due to the Chicago Temporary Casino opening later than expected and the decision to pause Tropicana reinvestment and operational changes as they await the MLB’s Oakland A’s relocation vote, which is scheduled to take place in November.
“Bally’s portfolio of assets remains well-positioned, and has demonstrated significant year-over-year revenue growth.”
George Papanier, Bally’s President
Bally’s is also updating recent foreign exchange headwinds at Bally’s International Interactive due to the strengthening of the US dollar. Guidance for rent expense remains at $125m (for straight-line GAAP rent, while actual cash rent is $119m). Capital expenditure guidance for 2023 remains at $160m.
George Papanier, Bally’s President, added: “Bally’s portfolio of assets remains well-positioned, and has demonstrated significant year-over-year revenue growth.
“We continue to take share in our respective markets, which the monthly gaming data illustrates, as we outperformed peers in most states. While we are closely monitoring consumer spending, we haven’t seen major shifts in customer behaviour, with the exception of very specific instances.
“In addition, we are pleased with the September opening of our Chicago Temporary Casino. We have satisfied our critical operating criteria and execution milestones, and expect to receive the necessary regulatory support to expand and accelerate marketing initiatives beginning later this month, which will enable us to bolster revenue and EBITDAR.
“The completion of our property redevelopment in Kansas City was extremely well-received by our patrons as well, and we expect to ramp up our marketing efforts this holiday season to re-introduce yet another Bally’s flagship property. Our portfolio’s near-term capex cycle has come to its end, and we expect to benefit from our capital improvements over the last two years throughout 2024.”
