Bally’s Q2 boosted by record casinos and resorts revenue

Revenue totaled at $606.2m for the three months. Bally’s casinos and resorts segment hit $333.1m, an increase of 11.1% year-on-year.

Robeson Reeves, CEO of Bally’s, said Bally’s had made “significant strides” during the quarter and noted the casinos and resorts revenue.

“Bally’s made significant strides this quarter, announcing new initiatives, achieving important project milestones, and building on our strong foundation for 2023 and beyond,” he said.

“Our core casinos and resorts segment produced record second-quarter revenues of $333.2m, an 11.1% increase compared to the second quarter of 2022.”

By segment

Bally’s International Interactive segment brought in revenue of $247.7m for the quarter, an increase of 1.7%.

North American Interactive revenue also grew, by 40% to $25.2m.

As usual, most of Bally’s revenue came from its gaming segment. This generated $493.2m in revenue, a rise of 8.4%.

Non-gaming revenue accounted for the remaining $112.9m.

Quarterly breakdown

Operating costs and expenses totaled at $600.2m for the quarter, effectively wiping out the revenue.

General and administrative expenses came to $249.9m for the quarter, up by a significant 29.6%. Costs stemming from gaming were $218.9m, up by 7.3%.

Depreciation and amortisation costs were $79.1m. Non-gaming expenses were $52.2m.

The various costs left the operating income at $5.9m, close to $80.0m less than the $85.3m in Bally’s Q2 2022.

Following interest expense of $67.0m and other non-operating income at $6.8m, pre-tax loss was $54.3m.

Following tax benefit at $28.6m, the net loss for the quarter was $25.6m, a fall of $85.1m year-on-year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $130.0m, a fall of 5.1%.

H1 results

Revenue for the half year to 30 June totaled $1.20bn, an improvement of 9.4% year-on-year.

The total operating expenses for the two quarters hit $822.2m, a drop of 17.2%. This brought the operating income to $382.7m, significantly higher than the $107.8m in H1 2022.

Following other expenses at $120.9m, the pre-tax profit was $261.7m. After $109.0m in tax, the total profit for the six months was $152.6m, a rise of 148.7%.

Adjusted EBITDA for the the six months totaled at $256.3m, up by 1.8%.

Half-year developments

During the six month period, Bally’s executed a number of strategic developments.

Before Robeson was appointed as CEO, Bally’s appointed finance executive Tracy Harris to its board of directors in January.

Also in January, the Pennsylvania Gaming Control Board approved a licence for a new Bally’s casino. In March Diamond Sports Group, the Bally Sports regional networks broadcaster, filed for bankruptcy.

In May, the Oakland A’s Major League Baseball team agreed to build its ballpark on Bally’s Tropicana property.