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Bally’s Corp. (NYSE: BALY) has reported a moderate increase in its second quarter (Q2 2024) financial results, ending June 30, 2024.
Key takeaways
- Company-wide revenue of $621.7 million represents an annual increase of 2.5%. This includes North America Interactive revenue of $49.2 million rising 94.7% annually.
- Bally’s announced $2.07 billion in aggregate transactions with GLPI. This includes $940 million of construction funding for the Chicago project.
- The company unveiled a new site plan for a permanent Bally’s Chicago Casino. This includes a single-phase 500-room hotel tower build, demolition and site prep on a 30-acre now underway.
- Bally’s Senior VP of Finance and Corporate Treasurer, Charlie Diao, said the company would not discuss the merger with Standard General further during the earnings conference call. The acquisition was finalized in July (during Q3 2024).
Bally’s second quarter 2024 financial results
As mentioned, company-wide revenue of $621.7 million represents an increase of 2.5% year-over-year from $606.2 million. Here’s a bigger picture:
- Revenue was driven mainly by Bally’s Casinos & Resorts revenue of $343.1 million, which rose 3.0% annually
- UK online revenues went up 9% while overall International Interactive revenue declined 7.4% year-over-year to $229.4 million, with a significant drop in Japan
- North America Interactive’s revenue of $49.2 million went up 94.7% year-over-year while also showing progress from the $41.5 million in Bally’s Q1 2024 earnings report.
Speaking of iGaming operations, Robeson Reeves, CEO of Bally’s, said in the Q2 2024 earnings call:
“We outperformed our internal expectations for this segment in the second quarter as we benefited from strong performance from our iGaming operations in Rhode Island.”
During the Q2, Bally’s generated nearly $6.7 million in net gaming revenue in Rhode Island. The market is relatively new, still in the early stage of its growth trajectory, as it launched in March.
Reeves continued: “Further, we continue to generate excellent results in our New Jersey and Pennsylvania iGaming markets as well as from our Bally Bet OSB operations, driven in part by the ongoing integration of the Kambi and White Hat technology platforms, which have garnered positive player feedback and enhanced our ability to deliver a leading product offering.”
He added that Bally’s expects to launch sports in an additional four states in the year’s second half. And they plan to continue planting seeds for expanded online casinos.
Bally’s announced important strategic developments
Some of Bally’s strategic moves include a merger, casino project developments in Chicago and Las Vegas, and a New York resort plan.
Bally’s announced $2.07 billion in aggregate transactions with GLPI, including $940 million of construction funding for the Chicago project.
Reeves said: “With GLPI, we also entered a sale-leaseback transaction for Bally’s Kansas City and Shreveport for $395 million and modified our sale-leaseback agreement of our Lincoln property, bringing the total transaction to over $2 billion. This is a key milestone for our Chicago development.”
The company also said they are ready to plant their flag in the city’s heart with its Bally’s Casino Chicago permanent resort. Bally’s disclosed the new site plan with a single-phase 500-room hotel tower. The plan includes the build, and demolition, with site prep on a 30-acre development underway.
George Papiner, Bally’s president, commented: “Turning to Las Vegas, we are moving forward with the demolition of the Tropicana and expect the planned implosion of the hotel tower to occur in October.
We remain on track to hand over the 9-acre portion of the site to MLB’s Athletics, who plan to begin construction of their new stadium in 2025.
Importantly, we continue to assess our options for the highly valuable land next to the stadium.”
In New York, the company is preparing for a licensing submission process, which will occur in June 2025. The winner will be revealed in early 2026.
Bally’s remains excited by the opportunity to develop a world-class combined resort adjacent to Bally’s Links at Ferry Point in the Bronx.
Bally’s, Casino Queen merger as a clear path to increased revenue
Among the recent highlights was Bally’s agreement to merge with The Queen Casino & Entertainment Inc., an affiliate of Standard General L.P.
Diao said management will not be answering questions regarding the merger agreement between Bally’s and Casino Queen, an affiliate of Standard General. He said they will also not discuss “special committee’s unanimous recommendation of the merger with cash consideration of $18.25 per share and the opportunity for rollover election by shareholders.”
The combined company will remain a publicly traded registrant under the Securities Act.
As Reeves explained: “This merger will expand our platform and databases, while further diversifying the markets in which we operate.
Moreover, combining The Queen Casino & Entertainment development pipeline with our own current growth initiatives provides a clear path to increased revenue, cash flow and value accretion for the company.”
