Bally’s Corporation has reported year-over-year growth across all revenue segments in the fourth quarter and for the full year 2023, but the company is still operating at a net loss.
CEO Robeson Reeves described the results achieved in 2023 as “healthy”, while CFO Marcus Glover noted that it was an “active and productive year” for Bally’s, in addition to expressing enthusiasm for 2024.
Bally’s 2023 net loss
Publishing its financial results, Bally’s declared Q4 consolidated revenue of $611.7m, up 6.1 per cent year-over-year (Q4 2022: $576.7m). Gaming revenue stood at $503m (Q4 2022: $461.6m).
For the full year, revenue improved by 8.6 per cent YoY to $2.45bn (2022: $2.26bn), the midpoint of the company’s guidance issued at the end of Q3. Gaming revenue stood at $1.99bn (2022: $1.85bn).
Adjusted EBITDA for the quarter stood at $129.3m (Q4 2022: $145.8m) with a margin of 21.1 per cent, while adjusted EBITDAR was $160m. For 2023, adjusted EBITDA was $527.3m (2022: $548.5m) with a margin of 21.5 per cent, while adjusted EBITDAR was $653.1m.
Bally’s reported a net loss for both measuring periods, although these were improvements when compared to the previous year. In Q4, the operator declared a net loss of $263.5m (Q4 2022: $487.5m net loss). For the full year, net loss was $172.6m (2022: $425.5m net loss).
Cash and cash equivalents, as of December 31, 2023, were $163.2m (2022: $212.5m), while net debt was $3.56bn.
“Bally’s completed a successful 2023 with healthy results across all our business segments,” commented Reeves.
“Revenues in the fourth quarter grew 6.1 per cent year-over-year to $611.7m, reflecting continued growth in our Casinos & Resorts, International Interactive and North America Interactive segments. For the full year, revenues grew 8.6 per cent versus 2022.”
Glover added: “Bally’s operating teams have been focused on expense reduction and operating efficiency. To that end, we are evaluating all areas of the business and are executing initiatives to centralise certain functions and streamline others.
“We continue to make progress with our plans for the financing of the Chicago permanent casino and hope to provide additional details on those plans in the near term. In all, 2023 was an active and productive year for Bally’s and we are extremely excited by what the future holds.”
Strong casino performance
All of Bally’s segments saw growth during Q4 and across 2023 in comparison to the same period last year, with North America Interactive rising by a significant percentage.
Casino & Resorts revenues during the quarter came in at $342.3m, up 7.2 per cent YoY (Q4 2022: $319.2m) with an adjusted EBITDAR of $94.6m (Q4 2022: $95.5m).
For the full year, the segment’s revenue rose by 11.1 per cent to $1.36bn (2022: $1.23bn) with an adjusted EBITDAR of $429m (2022: $398.9m).
Reeves noted that a “strong performance” was achieved across much of Bally’s portfolio, exceeding market GGR comp for revenue performance in seven out of 10 markets, demonstrating “underlying health”.
During the quarter, Bally’s announced that operations at a temporary casino in Chicago would become 24/7, with the property reaching a record $10m GGR in its first full month of 24/7 operations in January.
The CEO said: “Atlantic City delivered its first full year of profitable adjusted EBITDAR under our ownership. In Chicago, we continue to incorporate customer feedback to improve the guest experience.
“Further, we remain optimistic about the robustness of the market and the long-term potential for both the temporary casino and our permanent casino. We believe our Casinos & Resorts assets are well positioned to continue to increase market share and we will responsibly invest in growing our database to drive top-line results.”
“We believe our Casinos & Resorts assets are well positioned to continue to increase market share and we will responsibly invest in growing our database to drive top-line results.”
Bally’s CEO Robeson Reeves
International Interactive revenue improved by 2.1 per cent during Q4 to $236m (Q4 2022: $231.2m) with an all-time quarterly adjusted EBITDAR record of $93.2m (Q4 2022: $89.4m), thanks to optimised marketing and streamlined costs, in addition to operations beginning to stabilise in Asia.
For 2023, the segment’s revenue increased by 2.8 per cent to $973.2m (2022: $946.4m) with an adjusted EBITDAR of $343.6m (2022: $321.7m).
North America Interactive revenue rose by 26.9 per cent to $33.4m (Q4 2022: $26.3m) with an adjusted EBITDAR loss of $9.8m (Q4 2022: $5.86m loss). For the full year, the segment’s revenue rose by 37.8 per cent to $112.6m (2022: $81.7m) with an adjusted EBITDAR loss of $55.7m (2022: $65.7m).
Reeves claimed that Bally’s expects adjusted EBITDAR to still be at a close come the end of 2024, but an improvement on the previous year’s figure by over $20m.
He stated: “In 2024, we anticipate this segment will deliver an adjusted EBITDAR loss of approximately $30m, compared to an adjusted EBITDAR loss of $55.7m in 2023.
“We expect a non-linear quarterly cadence over the course of the year given various upcoming state launches and market entries, including our forthcoming igaming launch in Rhode Island and our own live dealer online experience.”
During the year, Bally’s secured an agreement to operate the concession at Bally’s Golf Links at Ferry Point in the Bronx and expanded its flagship property in Rhode Island.
In addition, the operator confirmed in January that Tropicana Las Vegas would be closing its doors on April 2 ahead of the planned demolition of the resort to build a ballpark for the MLB’s Oakland Athletics.
2024 guidance
Looking ahead, Bally’s has posted its guidance for 2024, as it expects to generate revenues in a range of $2.5bn to $2.7bn and adjusted EBITDAR in a range of $655m to $695m.
Per segment: Casinos & Resorts revenues – $1.4bn to $1.5bn, adjusted EBITDAR – $410m to $440m; International Interactive revenues – $950m to $1bn, adjusted EBITDAR – $320m to $350m; North America Interactive revenues – $150m to $200m, adjusted EBITDAR loss of $25m to $35m; corporate expense – $50m to $60m.
Bally’s noted: “The full year guidance includes the impact of severe winter weather on January results in the Casinos & Resorts segment followed by stabilisation thus far in February, as well as the impact the closure of the Tropicana Las Vegas will have on our 2024 year-over-year comparisons.
“The outlook also includes continued growth in the International Interactive business and the launch of igaming in Rhode Island in our North America Interactive segment.”