Bally’s Corporation reported third-quarter 2024 revenue of $630 million, marking a slight 0.4% decrease compared to the same period last year. While the company’s Casinos & Resorts and International Interactive segments experienced declines, its North America Interactive segment saw notable growth, driving optimism for the company’s future prospects.
The company’s net loss widened to $247.9 million for Q3 2024, compared to a loss of $61.8 million in the third quarter of 2023. Adjusted EBITDAR, a key performance metric, dropped significantly from $476.2 million in Q3 2023 to $166.3 million, influenced in part by a $150 million loss tied to a lease restructuring related to Bally’s Chicago project.
Despite the loss, Bally’s stock rose by 0.69% to $17.62 on November 6.
Bally’s North America Interactive segment saw growth, with revenue increasing 54.5% year-over-year to $45.7 million. This surge was mainly driven by strong performance in Rhode Island and Pennsylvania’s iGaming markets, although results in New Jersey were somewhat weaker.
Despite the revenue growth, the segment reported an adjusted EBITDAR loss of $11 million. Robeson Reeves, Bally’s CEO, emphasized the strong player feedback and expressed confidence in the long-term growth potential of both the iGaming operations and Bally Bet Online Sportsbook (OSB).
Meanwhile, Bally’s International Interactive segment experienced a 5.3% decline in revenue, dropping to $230.9 million. While performance in non-UK markets, especially Asia, remained weak, the UK operations saw growth of 11.8%.
This growth was driven by high active customer levels and strong Average Revenue per User (ARPU) metrics, as well as the recent launch of a second online sportsbook under the Bally’s brand, joining its original JackpotJoy offering. Reeves noted that the company is focusing on expanding in Europe, particularly Spain, and refining its online offerings to drive further growth.
However, the company’s core Casinos & Resorts segment saw a revenue decline of 1.6%, totaling $353.4 million. Challenges in this segment included traffic disruptions in Rhode Island due to local bridge construction and weaker-than-expected results from Atlantic City and Kansas City operations. As a result, adjusted EBITDAR for the segment fell by 15% year-over-year.
Meanwhile, Bally’s has made progress with its large-scale development projects, which are central to its long-term strategy. The company secured $940 million in construction financing from Gaming & Leisure Properties (GLPI) for its flagship casino project in Chicago. Demolition at the Tribune site is already underway, and construction for the permanent facility is scheduled to begin in 2025. This project set to establish Bally’s as a major player in the heart of the nation’s third-largest city, the company said.
“In Las Vegas, we are moving forward with the planning for a Bally’s casino on the Las Vegas Strip adjacent to the A’s stadium which will begin to rise next year following the recent implosion of the Tropicana hotel towers. Collectively, these growth opportunities leave us very optimistic regarding the long-term prospects of our C&R business,” Reeves stated.
Bally’s executives also discussed strategic changes in their Q3 earnings call, including the sale of their Asian interactive business to refocus on core North American and European markets. Reeves explained that this decision allows the company to reallocate capital to markets with better long-term growth prospects.
Looking ahead to the remainder of 2024, Reeves described the period as “active” for Bally’s, with a focus on capturing new market opportunities and expanding its presence in North America and Europe.
Marcus Glover, Bally’s Chief Financial Officer, stated: “Our broad asset portfolio again delivered a healthy financial performance in the third quarter of 2024 despite some lingering headwinds. The entire team is working diligently to optimize our cost structure across the board and enhance the efficiency of our operations, particularly in the C&R segment and within International Interactive.”
Original article: https://www.yogonet.com/international/noticias/2024/11/07/84521-bally-39s-revenue-flat-in-q3-but-north-america-interactive-and-new-developments-drive-optimism-
