Bally’s Corporation has reported $598.7 million in revenue for the first quarter of 2023, up more than $50 million when compared to the same period last year. The 9.2% hike in revenue comes despite a shakeup of the firm’s sports betting operations and a negative impact from severe weather conditions that occurred in Lake Tahoe most of the quarter and in Evansville in late March.
The Rhode Island-based casino company reported a net income of $178.3 million, up from $1.9 million in the prior year’s first quarter. Adjusted EBITDA came in at $126.4 million, an increase of 10.2% year-over-year. Bally’s now expects full-year revenue in 2023 to range between $2.5 billion and $2.6 billion.
The Casinos & Resorts segment saw continued momentum across the firm’s portfolio, generating record revenue of $328.8 million and adjusted EBITDAR of $105.1 million. The International Interactive segment saw revenue up 7.2%, driven by increased activity in the UK, while the North America Interactive vertical outperformed during Q1 amid cost-saving initiatives.
“We are pleased to have achieved strong results across all three of our segments,” said Robeson Reeves, Bally’s Chief Executive Officer. The executive noted that in North America, the company’s Interactive segment continues to be iGaming first, executing “extremely well” in New Jersey, where Bally’s market share surpassed 4%, on its way to achieving a 6-8% goal.
Bally's flagship Twin River casino in RI was upgraded in Q1
“As Ontario continues to progress, we look forward to our Pennsylvania launch in May as well,” added Reeves. “We are also closely monitoring the iGaming bill that was recently introduced into the Rhode Island legislature. Overall, our iGaming business is generating positive returns and we are very optimistic about the future of this business.”
The CEO also shared excitement over a recently announced partnership with online gaming solutions providers Kambi and White Hat Gaming to support the relaunch of Bally Bet, the firm’s online sports betting platform. Reeves noted these deals will allow Bally’s “to get this business back up and running in an effective and efficient manner.”
For his part, George Papanier, Bally’s President, said the portfolio’s near-term capex cycle has peaked for the Casinos & Resorts segment as several of the firm’s growth projects have come to or are nearing completion. This includes an upgrade of the company’s flagship Bally’s Twin River in Rhode Island, which was completed in April, and a Kansas City expansion that will conclude in July.
George Papanier, Bally’s President
But the operator is also looking forward to the opening of the Chicago temporary casino in late summer 2023, which officials said is “on track and on budget.” Concurrently, the firm is also advancing the full build of the Bally’s Chicago permanent facility, “which is slightly ahead of schedule and on budget for opening in the summer of 2026.” Papanier said there is “significant” consumer demand for this project, an exciting prospect for Bally’s.
Other Q1 updates
During the quarter, Bally’s repurchased one million shares of its common stock for an aggregate purchase price of $19.8 million. The company currently has $174.8 million available for use under its capital return program, subject to limitations in its regulatory and debt agreements. Separately, Bally’s also repurchased $15 million aggregate principal amount of its 5.875% Senior Notes due 2031 for an aggregate purchase price of $10.6 million in the quarter
The company also said it continues to execute the restructuring plan it communicated earlier this year for its International and North America Interactive segments, realizing restructuring expenses of $16.8 million in the first quarter of 2023. “The company implemented its cost-saving initiatives quicker and deeper than originally anticipated, and continues to evaluate additional cost-saving opportunities,” the business said in its report.
While revenue estimates remain in the aforementioned range of $2.5 billion to $2.6 billion, Bally’s is raising the low end of its Adjusted EBITDAR guidance range it provided in February to a new range of $665 million to $700 million. This includes a range of $40 million to $50 million of Adjusted EBITDA losses in North America Interactive and before approximately $124 million of rent expense (cash rent of $119 million).
And along with the Q1 report, Bally’s announced that Robert Lavan, Executive Vice President and Chief Financial Officer, is stepping down, with Marcus Glover set to undertake both roles. Reporting to Glover, Charles Diao will also join Bally’s as Senior Vice President, Finance and Corporate Treasurer. Additionally, Jaymin B. Patel will serve as Vice Chairman of the Board of Directors and will chair the Board’s newly created Operational Integration Committee.
See Bally’s full Q1 2023 report here.
Original article: https://www.yogonet.com/international/news/2023/05/11/67113-bally-39s-posts-9-revenue-growth-in-q1-driven-by-record-casinos-resorts-segment-performance
