Casino-entertainment giant Bally’s Corporation has announced preliminary financial results for the fourth quarter and full year of 2022. For Q4, the company has seen revenue of $576.7 million and a net loss of $476.8 million; while for the whole year, it posted revenue of $2.25 billion and a net loss of $414.8 million. The company expects to report its full results on February 23.
Revenue in the fourth quarter increased by almost $30 million from Q4 2021, while the net loss for the three-month period widened by more than 300%. Revenue for the entire year, at $2.25 billion, was notably up from $1.32 billion in 2021.
The increase in net loss is primarily attributed to a projected $390.7 million non-cash charge related to the company’s North American online operations, as part of an annual goodwill and asset impairment analysis. The net loss would be primarily driven by Bally’s Bet.Works and Monkey Knife Fight acquisitions, which had been re-evaluated to be worth less than they were considered at the period of purchase.
The company further added that it had recorded a $73.3 million impairment on a brand in its international interactive segment, which was related to its acquisition of Gamesys that was to be de-emphasized going forward.
“Unacceptable” results
Despite the setbacks, Robeson Reeves, current Bally’s President of Interactive, and incoming Chief Executive Officer, highlighted positive results in the land-based segment. “As our businesses continue to integrate, we are pleased to achieve record results in both our Casinos & Resorts and International Interactive segments,” Reeves pointed out.
“Our core businesses are generating fantastic cash flows,” he stated. “UK revenue grew 12% organically in the fourth quarter as regulations continue to play through, while in December, Asia saw positive year-over-year organic growth, proving that our initiatives to maintain a competitive advantage in that market are effective.”
While Reeves praised the performance of the company’s core businesses, his remarks weren’t as kind for Bally’s online operations. “Simply put, our North America Interactive results in 2022 were unacceptable,” he stated. “In response, through our announced restructuring plan of the Interactive business in January, we are taking a deep dive in our approach to North America to ensure that investments we make in sports have a near-term path to profitability.”
In online gaming states, the company continues to take share in New Jersey and Ontario as it integrates the business in a scalable way. And as part of restructuring, Bally’s is evaluating multiple options, including leasing technology structures that integrate “quickly and effectively” with its iCasino and marketing tech stacks.
The company expects these restructuring efforts, which have seen the company announce last month that it would be laying off about 15% of its workforce, to also drive benefits in the International Interactive segment.
2023 expectations
For his part, George Papanier, current Bally’s President of Casinos & Resorts, and incoming Bally’s President, said: “Casinos & Resorts saw continued momentum across the portfolio as we welcomed new spa amenities in Lincoln. Additionally, we broke ground on the temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023.”
Though it generated an expected loss during a slower fourth quarter, Atlantic City continues to progress, noted Papanier, and Bally’s expects the property to be profitable in 2023. Significant capital expenditures toward property improvements will decrease in 2023 as the casino company focuses on generating cash flows to invest in long-term growth opportunities for the entire Bally’s portfolio, he added.
Officials said business momentum continues “strong” into 2023, with no slowdown in the consumer as Bally’s continues to watch market macro dynamics. The company has issued its guidance for the year, expecting full 2023 revenue in the range of $2.5 billion to $2.6 billion, and Adjusted EBITDAR in the range of $660 million to $700 million.
Lee Fenton
Along with the Q4 and full year 2022 results, the company announced a leadership transition that will see Lee Fenton, CEO, step down, paving the way for Robeson Reeves to take over, effective March 31. Additionally, George Papanier, long-time Bally’s executive, will become Bally’s sole President.
Also this week, the company confirmed plans for a New York City casino bid next to the Trump Organization’s public golf course at Ferry Point in The Bronx. The gaming giant has engaged in discussions with the Trump Org about assigning 17 of the 300 acres on the site to Bally’s to operate a casino there, according to local media. The property is owned by the city and the real estate company has a 20-year contract with the Parks Department to operate it as a golf course.
Original article: https://www.yogonet.com/international/news/2023/02/14/66102-bally-39s-announces-preliminary-477m-loss-for-q4-deems-us-interactive-results-34unacceptable-34
