Operator News

US – Bally’s reports record company-wide revenue during the third quarter

By Phil - 13 November 2023

Bally’s Corporation generated record company-wide revenue of $632.5m, an increase of 9.4 per cent year-over-year for the third quarter ended on 30 September 2023.

This included record casinos & resorts revenue of $359m, up 9.3 per cent year-over-year and international Interactive revenue of $243.9m, up 7.2 per cent year-over-year, driven by a 13.1 per cent increase in the UK as market share gains continue. The company successfully opened the Chicago Temporary Casino in September and announced a deal to operate the concession at Bally’s Golf Links, a golf course at Ferry Point in the Bronx, NY.

“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.

“Our core Casinos & Resorts segment produced record third-quarter revenues of $359m, a 9.3 per cent increase compared to the third quarter of 2022. Bally’s International Interactive continues its impressive performance, with revenues increasing 7.2 per cent year-over-year, led by our robust UK business, where revenues rose by 13.1 per cent year-over-year in USD. We continue to gain incremental share in the UK due to our timely adaptations in response to regulatory changes. Our formula of increasing Average Revenue Per User (ARPU) and First-Time Depositors (FTDs), while reducing Cost Per Acquisition (CPA), 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.”

Bally’s had a consolidated net loss in the quarter of $61.8m and generated Adjusted EBITDAR of $173.2m and Adjusted EBITDA of $141.6m. For the nine-month period through September 2023, net income was $90.9m with Adjusted EBITDAR of $492.2m and Adjusted EBITDA of $398m.

In terms of segment contribution highlights for the quarter, Casinos & Resorts generated Adjusted EBITDAR of $118.2m, which included straight-line GAAP rent expense of $31.6m. International Interactive generated Adjusted EBITDAR of $85.5m this quarter, a 12 per cent year-over-year increase compared with $76.3m last year. North America Interactive reported an Adjusted EBITDAR loss of $(17.6) million this quarter compared with an Adjusted EBITDAR loss of $(19.7)m for the prior year period.

“Bally’s portfolio of assets remains well-positioned, and has demonstrated significant year-over-year revenue growth,” said George Papanier, Bally’s President. “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 behavior, 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.”

Bally’s is adjusting the revenue guidance provided on 9 May 2023, for the remainder of the year to $2.4bn to $2.5bn. The guidance range for Adjusted EBITDAR is now $640m to $655m. This change reflects the later-than-expected opening of our Chicago Temporary Casino and our decision to pause reinvestment and operational changes at the Tropicana while awaiting MLB’s decision on the Oakland A’s relocation. The MLB’s vote on the Oakland A’s relocation plans is scheduled to take place in November. We are also updating recent foreign exchange headwinds at Bally’s International Interactive due to the strengthening of the U.S. dollar. Guidance for rent expense remains at $125 million (for straight-line GAAP rent while actual cash rent is $119m) for the full year 2023.

Bally’s is maintaining its 2023 capital expenditure guidance of $160m in aggregate as we complete our capex expansion cycle. This amount excludes the investment in the Chicago Temporary Casino development project, which is now complete.

Bally’s guidance is based on current plans and expectations and contains several assumptions. The guidance is subject to a number of known and unknown uncertainties and risks, including those discussed under “Cautionary Note Regarding Forward Looking Statements” which can be found on the Bally’s Corporation website.