Bally’s Corporation has unveiled its financial performance for the first quarter of 2024, showcasing a 3.3% uptick in revenue to $618.5 million. The positive trajectory was propelled by robust growth in its Casinos & Resorts and North America Interactive segments, offsetting a decline in International Interactive operations.
CEO Robeson Reeves characterized the quarter as a “strong” start to the year. The North America Interactive segment emerged as a standout performer, recording a remarkable 70.2% surge in revenue year-on-year to $41.5 million. This notable growth was bolstered by the successful launch of legal online casino operations in Rhode Island, where Bally’s holds the sole operating license.
Despite a downturn in International Interactive revenue from $245.6 million in Q1 2023 to $234.7 million in Q1 2024, Bally’s remains optimistic about its core operations in the UK, which continue to deliver robust results. Reeves cited challenges outside the UK as the primary driver behind the decline in this segment.
The Casinos & Resorts division also experienced revenue growth, up 4.1% Y-o-Y to $342.3 million, supported by contributions from the company’s temporary Chicago casino and the closure preparations for the Tropicana Las Vegas, slated for demolition in October to make way for the Oakland Athletics’ new stadium.
“This step is crucial for keeping to our expected timeline, which includes the start of construction of their new stadium in the second half of 2025,” Reeves said. Simultaneously, the CEO said the company is “actively assessing” its options for the land next to the stadium, although officials denied being in a hurry to develop the site.
Looking closer at the revenue breakdown, gaming operations accounted for the majority of group revenue, totaling $516.1 million, a 6.0% increase year-on-year. In contrast, non-gaming activities generated $102.4 million, marking an 8.4% decrease compared to the previous year.
Amid a substantial rise in net operating costs, 211.9% higher at $692.4 million, Bally’s emphasized its commitment to enhancing operating efficiency and reducing expenses. “We are evaluating all business areas and implementing initiatives to streamline or centralize operations where it makes sense,” said chief financial officer Marcus Glover said.
The company’s annual guidance remains unchanged with expectations for 2024 revenues in a range of $2.5 billion to $2.7 billion and adjusted EBITDAR in a range of $655 million to $695 million.
While Bally’s reiterated its revenue and EBITDA guidance for the year, analysts from Macquarie Group flagged ongoing leverage and free cash flow concerns as the reasons for the 6% year-to-date decline in Bally’s shares. Macquarie adjusted its EBITDA estimates for 2024-2026 to reflect current trends, emphasizing potential risks such as project execution and consumer spending trends in the US.
In the meantime, Bally’s special committee continues to evaluate a takeover proposal from largest shareholder Standard General, amidst rival shareholder opposition and ongoing market speculation.
Original article: https://www.yogonet.com/international/noticias/2024/05/03/72024-ballys-revenue-rises-33-to-6185-million-in-34strong-34-q1-peformance
