Bally’s Corporation increased its EBITDAR guidance for the full year after growth in its first quarter 2023 financial period.
The operator reported a “strong” increase in all its segments but highlighted Casino & Resorts, where revenue reached a record high.
Bally’s has also announced that it is making progress in its North America Interactive segment. It added that its recent agreement with Kambi Group and White Hat Gaming will support its long-term growth.
Robeson R. Reeves, Bally’s CEO, said: “We are happy to have achieved solid results in all three of Bally’s segments, Casinos & Resorts International Interactive, and North America Interactive.” Notably, the Casinos & Resorts division saw continued growth across its portfolio.
North America Interactive also outperformed, as the cost-saving initiatives were implemented faster than expected. We are still igaming-first and are performing extremely well in New Jersey, where our market shares have exceeded 4%. This is well on our path to reaching our longer-term goal of 6-8%.
We are also excited by our newly announced partnerships with Kambi Gaming and White Hat Gaming, to support the relaunch of Bally Bet. This is in keeping with our promise to partner up with top-class technology providers, to get this business running again.
Q1
The revenue for the three-month period ending March 31, was $598.7m. This is an increase of 9.2% on a year-over-year basis. The gaming revenue was $486.9m and the non-gaming revenues were $111.8m.
Casino & Resorts revenues grew 17.4%, reaching a record of $328.8m. North America Interactive revenue grew 60.5% to $24.4m. International Interactive revenue fell 4.1% to $245.6m.
Operating expenses decreased by 57.8% to $222.2m. This was due to an additional $374.2m net gain from the sale-leaseback. It more than offset an increase in non-gaming costs and administrative expenses.
Bally’s had a $316.1m pre-tax profit after accounting for an additional $60.7m of finance costs. This is compared to the $2.7m losses posted at the same time in 2022.
The operator paid $137.7m income tax, which resulted in a profit of $178.3m. This is a 9,284.2% increase from $1.9m the previous year. The adjusted EBITDAR increased by 42.4% on an annual basis to $105.1m.
Bally’s responded by raising the lower range of its adjusted EBITDAR for the entire year. This is now set between $665.0m to $700.0m. The revenue estimates are still in the $2.50bn-$2.60bn range, but capital expenditure guidance has been reduced from $170.0m down to $160.0m.
New CFO
Bally’s announced that Marcus Glover, a former executive at MGM Resorts International (formerly Caesars Entertainment) and MGM Resorts International, has been appointed executive vice president and Chief Financial Officer.
Glover replaces Bobby Lavan who, after less than a year in his role, is leaving to pursue a new opportunity outside of the business.
Glover, a senior executive with more than 20 years’ experience in the gaming and hospitality industry, joins Bally’s from Quality Packaging Specialists International where he was most recently Chief Strategy Officer.
He spent almost five years as the president and chief operating of the Beau Rivage Resort & Casino as well as the Borgata Hotel Casino & Spa.
Glover held a variety of senior positions during his 11-year tenure with Caesars. He was vice president and general manger at the Horseshoe Casino in Ohio and Thistledown Racino.
Glover stated, “I am looking forward to working with an outstanding group of smart leaders to achieve the company’s goals, execute its strategic direction, implement global operational efficiency, and integrate talent and innovation, as well as develop and invest in talents and innovations to best position the business for continued success.”
Bally’s Chairman Soo Kim said: “Marcus has a track record for driving transformational strategies, and demonstrated expertise leading large integrated resorts and gaming operations.”
Reeves, the chief executive of Bally’s, also expressed his gratitude for Lavan. He said: “I would like to thank Bobby for all his contributions and leadership since he joined Bally’s 2021.” Bobby was instrumental in the growth of our business, as he led the acquisition, finance, and integration with Gamesys. “We wish Bobby the very best for his next chapter.”
Other appointments
Bally’s has also announced several other senior hires. HC Charles Diao was appointed senior vice president of finance and corporate treasurer.
Diao, who reports to Glover was previously senior vice president of finance, corporate development, and corporate treasurer at DXC Technology Company/Computer Sciences.
Bally’s also named Jaymin patel vice chairman of the board. Patel will be the chair of the new operational integration panel, which oversees a global process to streamline operations, reduce costs and create a global corporate center.
Kim stated that “These appointments will add significant financial depth and experience in global gaming management to our team, as we implement the exciting growth opportunity,”
Bally’s Chicago to IPO
Bally’s also submitted a draft registration with the Securities and Exchange Commission in relation to a proposed Initial Public Offering (IPO) for ownership interests of Bally’s Chicago – its planned resort and gambling casino in Chicago Illinois.
Residents of Chicago who meet the requirements of the Host Community Agreement, between Bally’s Chicago & the City of Chicago, will be eligible to receive ownership interests.
Bally’s has said that it is still determining the number of shares to be offered and their terms, as well as the range in price, for the proposed IPO. It added that the IPO will take place after the SEC finishes its review.
The operator said that there was no guarantee the IPO would go ahead.
