Bally’s post flat full-year results Q4 decreases 2024

Bally’s Corporation is strategically positioning itself for substantial growth through its upcoming innovations, dubbed Bally’s 2.0, despite experiencing year-on-year revenue declines in Q4 and maintaining flat results for the entirety of 2024.

In its earnings report released on March 5, Bally’s announced a Q4 group revenue of $580.4 million (£450 million/€537.9 million), representing a 5% decrease compared to the previous year. A significant portion of this revenue, amounting to $324.4 million, originated from the casino and resort segment, which also saw a 5% decline.

The company’s international interactive division experienced a 9% year-on-year revenue drop, totaling $214.5 million; this was despite a notable 11% growth in the UK market. Conversely, the North American interactive division, albeit its smallest, exhibited a remarkable 24% increase to $41.5 million compared to the same quarter last year.

For the fiscal year concluding on December 31, the total revenue of $2.45 billion and casino revenue of $1.36 billion remained stable year-on-year. Notably, the international interactive segment recorded a 6.5% decline to $909.5 million, whereas North American interactive revenue surged 58% to $177.8 million.

In a notable move, the company decided to forgo its earnings call for the second consecutive quarter, a decision that has drawn attention from analysts and stakeholders.

Flurry of Activity for Bally’s in 2024

The Q4 and full-year results for Bally’s reflect consistent performance amidst various strategic initiatives. A significant milestone was the July acquisition by hedge fund Standard General (SG), helmed by Bally’s Chairman Soo Kim. This acquisition was complemented by the merger with Queen Casino and Entertainment, also under SG’s banner. By expanding its casino portfolio, Bally’s aims to enhance revenue streams into 2025 and beyond.

According to CEO Robeson Reeves, the completion of these strategic transactions positions the four Queen properties for growth within a more extensive domestic gaming ecosystem, fundamentally expanding Bally’s geographic footprint and revenue potential. While earnings from these properties were not included in the Q4 results, Reeves noted they generated $57.6 million in revenue and an adjusted EBITDAR of $15.2 million.

Reeves emphasized that Bally’s 2.0 represents a “dynamic global land-based and online casino operator with strong growth pipelines in the U.S. gaming market.”

Optimism for Future Projects Amid Existing Challenges

Bally’s remains focused on ongoing projects in Chicago and Las Vegas. Construction is progressing on the permanent Chicago casino following the approval of the final master plan in December, after initial design plans faced rejection due to concerns regarding potential interference with municipal water infrastructure. Details regarding the Las Vegas project have been sparse, aside from the completion of the demolition of the former Tropicana.

However, the company navigates operational headwinds that are affecting current casino performance. Reeves reported an adjusted EBITDAR of $80.9 million for the segment, representing a greater than 14% year-on-year decline. Specifically, the Chicago temporary casino’s performance has fallen short of expectations, while Bally’s Lincoln, Rhode Island location is hampered by ongoing bridge construction and staffing challenges at its Atlantic City property—a narrative that echoes the Q3 results.

President George Papanier stated that “performance in our Casino and Resort segment reflects our ongoing efforts to unify our regional gaming portfolio. This work will accelerate with the integration of the four Queen properties, despite lingering performance hurdles in some markets.”

UK and North America Lead in Digital Performance

Digital operations are showing encouraging signs, particularly in the UK and North America. Reeves reported an 11% increase in the UK interactive market, attributed to improved player retention and effective revenue optimization strategies. Following the divestment of its Asian interactive business, Bally’s now derives licensing revenue from the region. The overall international interactive segment reported an adjusted EBITDAR of $81.6 million, a 12% decline year-on-year. However, excluding revenue impacts from divested markets, international interactive revenue demonstrated a healthy growth of 12.9% compared to the previous year.

In North America, despite an adjusted EBITDAR loss of $12.3 million, the division’s revenue surged by 24%. The launch of the Monopoly Casino iGaming app in New Jersey and the Bally Bet online sportsbook in Tennessee are anticipated to further enhance future performance. Reeves expressed confidence in gaining robust customer support for their iGaming and sports product offerings, which he believes will yield positive long-term results.

Australian Expansion: A Critical Inquiry

Looking ahead, Bally’s faces significant speculation regarding its potential interest in acquiring Australia’s Star Entertainment. As reported by the Australian Financial Review on February 21, Bally’s executives are said to have visited Star’s facilities to assess the operator, which is struggling financially and faces severe operational challenges. Bally’s is among several companies considering a bid for Star, including private equity giant Blackstone.

On February 28, Chairman Soo Kim confirmed the media reports, asserting that Bally’s consistently seeks opportunities among distressed assets, referring to the company as “corporate firefighters.”