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Bally’s Corp. stock gets a much-needed boost after revealing preliminary results for the final quarter of 2022. Bally’s Q4 forecast includes $576 million in revenue, which is $8 million more than analysts’ estimations. The company also revealed its new direction after cutting 15% of its staff in January.
Preliminary Bally’s fourth quarter results
In a statement, incoming CEO Robeson Reeves said:
“Our core businesses are generating fantastic cash flows. UK revenue grew 12% organically in the fourth quarter as regulations continue to play through. In December, Asia saw positive year-over-year organic growth, proving that our initiatives to maintain a competitive advantage in that market are effective.”
Reeves, Bally’s current president, will head the company at the end of Q1. He is replacing Lee Fenton, who is also resigning from the company’s board of directors.
Preliminary Fourth Quarter 2022 Financial Highlights include:
- Revenue of $576.7 million
- Net loss of $476.8 million includes non-cash goodwill and asset impairment charges of $464.0 million
- Adjusted EBITDA of $145.8 million
- Adjusted EBITDA of $164.4 million
- 2023 guidance – full-year revenue range of $2.5 to $2.6 billion and Adjusted EBITDAR range of $660 to $700 million
“As our businesses continue to integrate, we are pleased to achieve record results in both our Casinos & Resorts and International Interactive segments,” Reeves said.
2022 results were not good
When it comes to performance, Reeves said 2022 results were unacceptable.
“Through our announced restructuring plan of the interactive business in January, we are taking a deep dive into our approach to North America to ensure that investments we make in sports have a near-term path to profitability.”
In January, Bally’s said it was cutting 15% of its staff in a move toward profitability.
According to the company’s 8-K filing: “Decisions regarding the elimination of positions are subject to local law and consultation requirements in certain countries, as well as the company’s business needs.
Bally’s estimates it will incur between $10 million to $15 million in cash severance costs, which the company expects to incur in the first quarter of 2023.”
“In iCasino states, we continue to take share in New Jersey and Ontario as we integrate this business in a scalable way,” Reeves said.
“As part of the restructuring, we are evaluating multiple options, including leasing technology structures that integrate quickly and effectively with our world-class iCasino and Marketing tech stacks. We also expect our restructuring efforts to drive benefits in our International Interactive segment.”
Chicago casino remains a big project for Bally’s
One of the big projects Bally’s is currently focused on is its downtown Chicago casino.
George Papanier, current Bally’s President, said the company expects the Chicago facility to contribute to the business moving forward.
“We broke ground on the temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023.”
Papanier closed out his statement by saying:
“Business momentum continues strong into 2023, with no slowdown in the consumer as we continue to closely watch market macro dynamics.”
