Bally's (BALY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $630 million, down 0.4% year-over-year, with Casinos and Resorts down 1.6% and North America Interactive up 54.5%; net loss was $247.9 million, driven by a $150 million loss on the Chicago sale-leaseback and Tropicana Las Vegas closure costs.

• U.K. Interactive revenue grew 11.8%, while International Interactive declined 5.3% due to non-U.K. operations.

• Significant development progress in Chicago and Las Vegas, with $940 million in construction funding secured and demolition/site preparations underway.

• Entered into a merger agreement with SG Parent LLC and Queen Casino & Entertainment, expected to close in Q1 2025, and agreed to carve out Asian and certain international interactive businesses.

• Casino Queen merger is pending, with a special shareholders meeting scheduled for November 19th.

Financial highlights

• Q3 2024 revenue: $630 million (down 0.4% year-over-year); nine-month revenue: $1.87 billion (up 1.8%).

• Q3 2024 net loss: $247.9 million; Adjusted EBITDA: $137.7 million (21.9% margin); Adjusted EBITDAR: $166.3 million.

• Casinos and Resorts revenue: $353.4 million (down 1.6%); Adjusted EBITDAR: $100.4 million (down 15%).

• International Interactive revenue: $230.9 million (down 5.3%); Adjusted EBITDAR: $90 million (up 5.3%).

• North America Interactive revenue: $45.7 million (up 54.5%); Adjusted EBITDAR loss: $(11.0) million.

Outlook and guidance

• North America Interactive expects continued narrowing of losses as iGaming and OSB operations ramp up.

• Permanent Chicago casino expected to open by end of 2026, with construction starting next year and $190.2 million in 2024 spending.

• GLP to provide up to $940 million in construction financing for Chicago, with new master lease terms.

• New Jersey launch of sports and Monopoly Casino in November, with further state expansions planned.

• Expects post-carve-out licensing and royalty revenues from Asian interactive business to be lower in volume but at higher margins.