Bally’s Corporation Releases Q2 2023 Financial Results

Bally’s Corporation has released its financial results for the second quarter of 2023, recording total revenue of $606.2 million, marking a 9.7% increase compared to the same period last year.

The company’s Casinos & Resorts division achieved revenue of $333.2 million, representing an 11.1% year-over-year growth. Additionally, the International Interactive division saw revenue of $247.8 million, showing a 5.6% increase compared to the previous year. Bally’s also reported North America Interactive revenue of $25.3 million.

During the quarter, Bally’s signed a deal with the Oakland A’s of MLB to construct a new stadium on a portion of its Tropicana Las Vegas site. Moreover, Rhode Island legalized iGaming and designated Bally’s as the sole provider in the state. The company anticipates launching iGaming in Rhode Island in March 2024.

Regarding financial performance, Bally’s reported a net loss of $25.7 million for the quarter, compared to a net income of $59.5 million during the same period last year. The company’s Adjusted EBITDA was $130.0 million, down from $137.0 million in Q2 2022. Rent expense for the quarter was $31.3 million, significantly higher than the $11.5 million reported in the second quarter of 2022. The company’s Adjusted EBITDAR reached $161.4 million.

Looking ahead, Bally’s maintains its revenue guidance of $2.5 billion to $2.6 billion for the fiscal year 2023. The company also expects Adjusted EBITDAR in the range of $665 million to $700 million for the same period. The guidance accounts for investments in the business, including the Pennsylvania iGaming launch, Bally Bet rollout, and omni-channel initiatives. The rent expense for the year remains projected at $125 million, with actual cash rent estimated at $119 million.

Robeson Reeves, Bally’s Chief Executive Officer, said “Bally’s made significant strides this quarter, announcing new initiatives, achieving important project milestones, and building on our strong foundation for 2023 and beyond. Our core Casinos & Resorts segment produced record second-quarter revenues of $333.2 million, an 11.1% increase compared to the second quarter of 2022. International Interactive also remained solid, with revenues increasing 5.6% year-over-year, led by our robust UK business, which grew revenues by 11.5% year-over-year.

“North America Interactive iGaming is ramping up positively, driven primarily by New Jersey and our successful June launch in Pennsylvania. Additionally, we are extremely pleased that the Rhode Island legislature legalized iGaming, naming Bally’s as the sole provider in the State with an anticipated launch in March 2024. In addition, we have made significant progress transitioning Bally Bet onto the Kambi and White Hat technology platforms, which is on track to rollout later this summer.

“Bally’s had a consolidated net loss in the quarter of $25.7 million and generated Adjusted EBITDAR of $161.4 million, up 8.7% from last year, and Adjusted EBITDA of $130.0 million. For the six-month period through June 2023, net income was $152.7 million with Adjusted EBITDAR of $319.0 million, up 16.1% from last year, and Adjusted EBITDA of $256.4 million.

“Giving some segment contribution highlights for the quarter, Casinos & Resorts generated net income of $26.7 million, Adjusted EBITDAR of $111.0 million, up 11.6%, and Adjusted EBITDA of $79.7 million. International Interactive generated Adjusted EBITDA of $84.6 million this quarter compared with $82.6 million last year. North America Interactive reported an Adjusted EBITDA loss of $(17.7) million this quarter compared with $(20.9) million loss for the prior year period.”

George Papanier, Bally’s President, added, “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 backhalf of 2023, particularly in the fourth quarter.”

For more detailed financial information and reconciliations of non-GAAP financial measures, please refer to the tables provided in the official press release.

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