Bally’s Corporation Q3 2023 Results Show Strong Growth, But Still Lead to Loss
Bally’s Corporation, a prominent U.S. gambling operator, has reported a total revenue of US$632.5 million in Q3 2023. That’s up 8.9% on the same quarter in 2022. However, despite growth in all areas, the company recorded a net loss of $61.8 million for Q3 2023.
That will partly be due to its increased spending in the quarter. One big outlay was the opening of a temporary casino in Chicago, as it spends $1.75 billion to add to the list of Illinois casino venues with a permanent mega casino resort in downtown Chicago.
“Bally’s continued to generate very solid operating results across all three of our business segments, as revenues rose to $632.5 million, a 9.4% year-over-year increase, while also achieving significant development and project milestones,” said Robeson Reeves, Bally’s CEO, in the company’s earnings report release.
Growth in All Segments
Over the nine-month period up to September 2023, Bally’s showed a net income of $90.9 million and adjusted revenues of $492.2 million.
The Casinos & Resorts segment contributed $359 million, and the International Interactive segment rose to $243.9 million, with the UK market experiencing notable growth. North American International revenue was $29.6 million, up 33% on Q3 2022.
The company also reported adjusted guidance for the full 2023 year, with expected revenues at $2.4 billion to $2.5 billion.
“Bally’s continued to generate very solid operating results across all three of our business segments,” Reeves said.
However, despite that growth, Bally’s still had a net loss of $61 million. During the quarter, it opened a brand new temporary casino in Chicago, revamped and relaunched its online sports betting service Bally Bet, and ramped up promotion for its New York casino bid. It also finalized the land purchase for said bid, buying up the lease for Trump Ferry Point golf course in the Bronx for an undisclosed fee.
The operator also paid $43.9 million in taxes during the quarter, which would have contributed to the overall loss.
However, Reeves remained buoyant about the achievements this expenditure paid for.
“We also achieved significant development and project milestones,” he said.
“These included the highly anticipated opening of our Chicago Temporary Casino, as well as the completion of our reconceptualized Kansas City redevelopment. Additionally, we successfully rolled out our new Bally Bet OSB app, strengthening our solid foundation as we approach 2024.”
Tropicana Lease Sale Still Possible
During the Q3 earning report, Bally’s also announced it is open to selling the lease on one of its famous Nevada casino venues, Tropicana Las Vegas.
It had previously announced a binding agreement with the Oakland Athletics for the California team to build a new ballpark on the site ahead of its proposed move to Las Vegas. However, that deal has been stalled since May, with negotiations set to conclude one way or the other before the end of the year.
Bally’s has now announced it will reduce its headcount by 300, and that could coincide with plans to sell (and demolish) the Tropicana.
Bally’s CFO Marcus Glover told analysts that Tropicana’s current value is “enormous,” and that at a compelling price, Bally’s would be open to selling its lease on the venue. CEO Robeson Reeves reminded analysts that Bally’s paid just $150 million to acquire rights to that lease, along with a further $158 million for rights to operate the casino.