Bally’s Corporation Reveals Strategic Growth in Q2 2024 Financial Results

Bally’s Corporation has announced its financial results for the second quarter ending June 30, 2024. The company’s revenue grew by 2.5% year-over-year, totaling $621.7 million. This growth is attributed to the strong performance of Bally’s North America Interactive segment, which saw a 94.7% increase, alongside a 3.0% rise in the Casinos & Resorts segment.

Financial Performance and Strategic Initiatives

Bally’s second-quarter revenue increase was largely driven by its Casinos & Resorts segment, which recorded $343.1 million, marking a 3.0% year-over-year increase. The North America Interactive segment reported significant growth with revenue reaching $49.2 million, a 94.7% surge compared to the same quarter last year. However, the company’s International Interactive segment experienced a 7.4% decline, largely due to challenges in the Asian market, while UK revenues grew by 9%, a record performance.

The company also highlighted a series of strategic moves, including a $2.07 billion transaction with Gaming & Leisure Properties, Inc. (GLPI), which includes $940 million allocated for the construction of Bally’s Chicago Casino. Additionally, Bally’s has entered into a definitive agreement to merge with The Queen Casino & Entertainment Inc., a move expected to enhance the company’s domestic portfolio.

Chicago Casino Development and Market Challenges

Bally’s continued to advance its Chicago project, unveiling a new site plan that includes a 500-room hotel tower as part of a single-phase build. The demolition and site preparation are currently underway at the 30-acre development site.

Despite the progress in Chicago, Bally’s faced several market-specific challenges. For instance, local construction in Rhode Island has disrupted traffic, impacting visitation to Bally’s Lincoln property. Additionally, increased promotional activity from Massachusetts properties has posed competitive challenges, which Bally’s is actively managing.

Outlook and Strategic Focus

Looking ahead, Bally’s has maintained its annual revenue guidance in the range of $2.5 billion to $2.7 billion, with expectations to be at the lower end of the range. The company has also reduced its capital expenditure targets by approximately $50 million, excluding major developments like the Tropicana and Chicago projects. Bally’s remains focused on optimizing its cost structure and enhancing operational efficiency to long-term growth.

Bally’s Chief Financial Officer, Marcus Glover, emphasized the diversity of Bally’s asset portfolio, which continues to drive healthy financial performance despite some headwinds. The company remains committed to its growth strategies, particularly in expanding its interactive segments and completing its major development projects.

Bally’s Corporation’s Q2 2024 results reflect the company’s strategic focus on expanding its domestic portfolio and optimizing its interactive segments. With significant projects like the Chicago Casino underway, Bally’s is positioning itself for long-term growth and continued success in the gaming and entertainment industry.

Source:

BALLY’S CORPORATION ANNOUNCES SECOND QUARTER 2024 RESULTS [PDF], Bally’s, July 31, 2024.