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, mainly due to a $150 million loss on the Chicago sale-leaseback and $80.1 million in accelerated depreciation from the Tropicana Las Vegas closure.

• U.K. Interactive revenue grew 11.8%, while International Interactive declined 5.3% due to non-U.K. operations; International Interactive Adjusted EBITDA margins improved by 400 basis points year-over-year.

• 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.

• Secured $940 million in construction funding for the Chicago flagship casino, with demolition and site preparation underway; Tropicana Las Vegas redevelopment and New York casino license bid progressing.

• Significant non-recurring items included a $6.3 million write-off due to a payment service provider issue in online sports wagering.

Financial highlights

• Q3 2024 consolidated revenue was $630 million (down 0.4% year-over-year); net loss was $247.9 million; Adjusted EBITDA was $137.7 million (21.9% margin); Adjusted EBITDAR was $166.3 million.

• Casinos and Resorts revenue was $353.4 million (down 1.6% year-over-year); Adjusted EBITDA for this segment was $100.4 million (down 15%).

• International Interactive revenue was $230.9 million (down 5.3%); Adjusted EBITDA rose 5% to $90 million, with margins expanding to 39%.

• North America Interactive revenue was $45.7 million (up 54.5% year-over-year), with an Adjusted EBITDA loss of $11 million.

• Ended the quarter with $191 million in cash and $3.7 billion in long-term debt.

Outlook and guidance

• North America Interactive segment expected to narrow losses as iGaming and online sports betting operations ramp up.

• Construction of the Chicago flagship casino is on track, with opening targeted for September 2026 and $190.2 million in 2024 spending for demolition and site preparation.

• New Jersey launch of sports and Monopoly Casino planned for November, with further state expansions in 2025.

• Casino Queen merger expected to close in Q1 2025, adding new assets to the portfolio.

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