Rhode Island-based Bally’s Corporation reported a 2.5% year-over-year increase in company-wide revenue for Q2 2024, reaching $621.7 million. This growth was driven by a 3% increase in Casinos & Resorts revenue to $343.1 million, a 9% rise in UK online revenues, and a 94.7% surge in North America Interactive revenue to $49.2 million. However, overall International Interactive revenue fell 7.4% to $229.4 million.
“Bally’s delivered solid 2024 second quarter operating results during what remains an active period for our company,” said CEO Robeson Reeves. “Casinos & Resorts revenue of $343.1 million benefited from the ongoing ramp of operations at our Chicago temporary casino and stability across most of our portfolio, offset by the closure of Tropicana and in part by property-specific headwinds in certain markets.”
During the period, Bally’s announced $2.07 billion in aggregate transactions with Gaming and Leisure Properties Inc. (GLPI), including $940 million in construction funding for its Chicago project. The new site plan for the permanent Bally’s Chicago Casino includes a single-phase 500-room hotel tower, with demolition and site preparation currently underway on the 30-acre development site.
Additionally, Bally’s agreed to a buyout offer from Standard General LP, its largest shareholder, for $4.6 billion. As part of the deal, the company will merge with The Queen Casino & Entertainment Inc, an affiliate of Standard General. Officials did not comment on questions about the major development during conversations with stakeholders.
The Chicago temporary casino has welcomed over one million visitors, contributing to the 3% growth in Casinos & Resorts revenue. In the UK market, Bally’s saw healthy revenue growth of 9% and improved adjusted EBITDAR margins by 130 basis points. North America Interactive operations performed strongly in Rhode Island, New Jersey, and Pennsylvania markets.
In Las Vegas, Bally’s will demolish the Tropicana to make way for a new $1.5 billion stadium for the Oakland A’s, while evaluating future development options for the remaining site. Officials said the demolition is moving as planned, supporting details noted in a blast permit application filed in July with Clark County, which pegs the potential timeframe the Trop will be imploded as between Sept. 30 and Oct. 8.
Bally’s annual revenue guidance remains between $2.5 billion and $2.7 billion, with adjusted EBITDAR projected to be between $655 million and $695 million, expected to be at the lower end. Capital expenditures and software development costs have been reduced by about $50 million to an expected $115 million for the year, excluding major projects like the Chicago casino and Tropicana.
George Papanier, Bally’s President, said: “While certain market-specific events impacted performance, the rest of the C&R portfolio grew 19% year-over-year, and excluding Chicago, grew 3%, demonstrating the resilience of our portfolio.”
CFO Marcus Glover added: “The diversity of our asset portfolio was again on display in the second quarter of 2024 as we generated healthy financial performance even in the face of some property-specific headwinds.”
Looking ahead, the Chicago casino project is expected to open in the third quarter of 2026. In addition to that project, Bally’s has proposed a $2.5 billion casino project at the former Trump Golf Links in the Bronx, New York.
In a Truist research note released after the quarterly report, the firm noted that the operator’s revenues came short of estimates for all three segments, with the biggest factor still undetermined being the Standard General takeover. The stock maintained a ‘hold’ rating as a result.
Original article: https://www.yogonet.com/international/noticias/2024/08/01/73920-ballys-posts-6217-million-q2-revenue-up-25-amid-strategic-expansions-standard-general-takeover
