In its earnings call, Bally’s reported Q2 revenue of $606.2 million, showing a 9.7% year-over-year increase. It was primarily thanks to the company’s record performance driven by the land-based casinos and resorts division, and the online gambling segment.
Robeson Reeves, Bally’s chief executive officer, said in a news release:
“Bally’s made significant strides this quarter, announcing new initiatives, achieving important project milestones, and building on our strong foundation for 2023 and beyond.”
Bally’s Q2 2023 financial highlights
Apart from reaching an almost 10% increase in revenue, Bally’s other divisions reported yearly improvements throughout the second quarter of 2023.
Bally’s Casinos & Resorts segment generated record Q2 revenues of $333.2 million. The figure is an 11.1% year-over-year uptick in comparison to Q2 2023. Meanwhile, Casinos & Resorts generated net income of $26.7 million. Adjusted EBITDAR was $111.0 million (11.6% up), and Adjusted EBITDA was $79.7 million.
The company also emphasized that its International Interactive revenue was $247.8 million, a 5.6% year-over-year increase. The segment was led by Bally’s UK business, where revenues saw an 11.5% growth. International Interactive generated Adjusted EBITDA of $84.6 million, a 2.4% uptick from last year’s $82.6 million.
North America Interactive online gambling also ramped up positively. Positive results were primarily driven by the New Jersey market and the successful Bally’s casino launch in June in Pennsylvania. North America Interactive also reported an Adjusted EBITDA loss of $17.7 million this quarter compared to a $20.9 million loss for the prior year.
According to a PR Newswire release, George Papanier, Bally’s president, emphasized: “Our core Casinos & Resorts customer base remains resilient. While we are keeping a close eye on spending trends and the health of the consumer generally, we are pleased with how our overall portfolio is performing, with significant year-over-year revenue growth and margin expansion.”
Bally’s completed several strategic expansion moves
Rhode Island government legalizing online gambling in the state marked another highlight for Bally’s. The state named Bally’s the sole provider, with an anticipated launch in March 2024.
Bally’s has also made significant progress transitioning Bally Bet onto the Kambi and White Hat technology platforms. The agreement is on track to roll out later this summer.
Bally’s also partnered with the Oakland A’s of MLB to construct a new ballpark on its Tropicana Las Vegas site.
As Papanier said, the company looks forward to the opening of its Chicago Temporary Casino in September, as well as unveiling its redevelopment in Kansas City as well.
Papanier commented: “Importantly, our portfolio’s near-term capex cycle has peaked as our Twin River Lincoln project was completed in late April, as will the Chicago Temporary Casino and Kansas City expansion projects through this quarter.
We expect to be mining the returns from those expansion plans in the back-half of 2023, particularly in the fourth quarter.”