Bally's (BALY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 3% year-over-year to $622 million, led by growth in Casino & Resort and North America Interactive, while International Interactive outside the U.K. declined.

• Net loss for Q2 2024 was $60.2 million, reflecting higher interest expense and accelerated depreciation.

• Adjusted EBITDAR was approximately $162 million, flat year-over-year, with Casinos & Resorts and International Interactive segments seeing declines, while North America Interactive losses narrowed.

• Announced a definitive merger agreement with Queen Casino & Entertainment, offering $18.25 per share cash consideration and equity rollover option.

• Secured $940 million in construction financing for the Chicago permanent casino, with additional sale-leaseback transactions totaling over $2 billion.

Financial highlights

• Q2 2024 total revenue: $622 million (up 3% year-over-year); Casinos & Resorts revenue: $343.1 million (up 3%); International Interactive: $229.4 million (down 7.4%); North America Interactive: $49.2 million (up 95%).

• Adjusted EBITDA for Q2 2024: $130.1 million, flat year-over-year; Adjusted EBITDAR margin improved to 26%.

• Net loss for Q2 2024: $60.2 million, or $(1.24) per diluted share.

• Ended the quarter with $155 million in cash and $3.58 billion in net debt.

• Operating cash flow for six months: $39.7 million; capital expenditures for six months: $63.8 million, mainly for Chicago.

Outlook and guidance

• 2024 revenue guidance is $2.5–$2.7 billion, with Adjusted EBITDAR expected at $655–$695 million, likely at the lower end.

• Core CapEx for 2024 reduced to $115 million, down from $165 million, excluding Chicago and Tropicana projects.

• Permanent Chicago casino construction targeted for completion by end of 2026; site prep underway.

• North America Interactive expected to incur an adjusted EBITDA loss of better than $30 million for 2024, with losses decreasing nonlinearly.

• No cash dividends planned for the foreseeable future; $95.5 million remains under the capital return program.