Bally’s: Q1 growth in Casino and North America Interactive segments

Image: Chris Allan/Shutterstock

Bally’s Corporation has reported an uptick in revenue during the first quarter of 2024, with growth occurring across its Casino & Resorts and North America Interactive segments.

While International Interactive’s revenue declined year-over-year, CEO Robeson Reeves noted that gains were made in the UK ahead of the launch of its online sports betting offering in the market later this year.

Publishing its Q1 results, Bally’s declared a company-wide consolidated revenue of $618.5m, up 3.3 per cent YoY (Q1 2023: $598.7m), driven by Casino & Resorts and North America Interactive segments.

Gaming revenue came in at $516.1m (2023: $486.9m) while non-gaming revenue was $102.4m (2023: $111.8m).

The operator reported a net loss for the quarter of $173.9m, down from the net income of $178.3m net income during the same period the previous year. Adjusted EBITDAR stood at $148.1m. As of March 31, 2024, cash and cash equivalents stood at $169.3m.

Per segment, Casino & Resorts and North America Interactive revenue improved, but International Interactive revenue declined despite UK growth.

“Bally’s is off to a solid start in 2024, driven by revenue growth in our Casinos & Resorts and North America Interactive segments,” commented Reeves.

“While International Interactive revenues fell 4.4 per cent year-over-year in the aggregate, our core UK interactive operations grew revenues 12 per cent (seven per cent on a constant currency basis) as our strategies play out reflecting the initiatives we adopted in contemplation of the White Paper implementation in the UK.”

Bally’s segment growth

Casino & Resorts revenue rose by 4.1 per cent YoY to $342.3m (2023: $328.8m), with Reeves noting that this was “inclusive of the contribution from the Chicago Temporary Casino and the winding down of the Tropicana Las Vegas”.

Adjusted EBITDAR declined to $89.4m (2023: $105.1m), which the CEO attributed to “the impact of weather in January and adverse hold in several markets”, as well as Providence Bridge construction in Rhode Island impacting Twin River operations and the deleveraging of operations at Tropicana Las Vegas, ahead of the Las Vegas A’s relocation at the site.

International Interactive revenues fell by 4.4 per cent YoY to $234.7m (2023: $245.6m), which Reeves says was “primarily driven by operations outside the UK” and reflects Bally’s strategic shift to focus on “maximising profit yield instead of pursuing uneconomic growth”.

Adjusted EBITDAR for the segment rose by four per cent YoY to $83.5m (2023: $80.3m) as work to optimise “marketing investments and cost structure reductions continue to boost segment profitability”.

Reeves stated: “In the UK, we took advantage of the uncertainties created by the White Paper and continued our online igaming market share gains, resulting in strong revenue growth. As the year progresses, we look forward to the launch of online sports betting in the UK to complement our igaming offering and add another customer acquisition funnel.

“Outside the UK, we believe our operations in Spain are well positioned to benefit from the recent removal of advertising restrictions, which will enable us to increase our investment in faster growth. We also anticipate the further stabilisation of our operations in Asia with an enhanced OSB offering to complement our existing portfolio.”

North America Interactive revenue improved by 70.2 per cent YoY to $41.5m (2023: $24.4m), while adjusted EBITDAR came in at a loss of $10.2m, a slight improvement on the same period the previous year (2023: $10.6m loss).

Reeves noted that the segment’s results were in line with expectations while igaming operations in New Jersey and Pennsylvania continue to gain market share. Momentum could continue for the segment into Q2 following the launch of igaming in Rhode Island in March.

Bally’s added that its guidance for 2024 remains unchanged, as revenues are expected in the range of $2.5bn to $2.7bn, while adjusted EBITDAR is expected in the range of $655m to $695m.

Revenues for Casino & Resorts are expected to be $1.4bn to $1.5bn, with an adjusted EBITDAR between $410m and $440m. International Interactive is expected to see revenue between $950m and $1bn, with an adjusted EBITDAR in the range of $320m and $350m.

North America Interactive revenue is expected in the range of $150m to $200m, while adjusted EBITDAR is expected to be a loss between $25m and $35m.

Marcus Glover, Bally’s Chief Financial Officer, concluded: “Our financial results for the first quarter of 2024 demonstrate the strength of our diversified business segments. Bally’s operating teams remain focused on reducing expenses and enhancing operating efficiency. 

“We are evaluating all business areas and implementing initiatives to streamline or centralise operations where it makes sense. Overall, we made progress on several of these initiatives in the first quarter and are looking forward to the promising opportunities that lie ahead.”