Bally’s Corporation has released its financial results for the third quarter ended September 30, showcasing robust revenue growth and strategic moves to enhance profitability. The company reported a 4.7 per cent increase in revenue compared to the previous quarter, reaching an impressive $578.2 million, marking an 83.7 per cent surge year-on-year.
Revenue and Earnings:
During the third quarter, Bally’s Corporation witnessed an extraordinary 4.7 per cent increase in revenue from the previous quarter, totaling $578.2 million. This figure also represented a remarkable 83.7 per cent rise compared to the same period last year when the revenue stood at $314.8 million. The company’s adjusted EBITDA experienced substantial growth, reaching $151 million for the quarter, in contrast to $78 million in the previous year. Earnings per share amounted to $0.01.
Operational Expansion and Integration:
The CEO, Lee Fenton, attributed the significant growth to the successful integration of regional casino properties and the welcoming of Tropicana Las Vegas into their portfolio. The company is actively driving its omni-channel portfolio in the United States, aiming to provide a seamless gaming experience to customers. The UK’s International Interactive segment demonstrated a return to growth with record margins, albeit hampered by foreign exchange headwinds. Meanwhile, North America Interactive continued its expansion, driven by the success of New Jersey iGaming and the launch of a new combined app for Sports and igaming in Ontario.
Profitability Strategies:
Lee Fenton emphasized the need to evaluate money-losing businesses in North America Interactive, redirecting efforts towards ventures with faster paths to profitability. This strategic realignment underscores the company’s commitment to enhancing its financial performance and delivering value to shareholders.
Revised Guidance and Capital Return Program:
Bally’s Corporation has updated its guidance for the year ending December 31, 2022, projecting revenue and adjusted EBITDA of approximately $2.25 billion and $540 million, respectively. The company has decided to expense upfront costs related to the launch of interactive businesses in new jurisdictions before full operational commencement, no longer including these costs as adjustments to adjusted EBITDA. During the quarter, the company repurchased 5.4 million shares of its common stock, reinforcing its commitment to creating shareholder value. The aggregate purchase price for these shares, including the completed tender offer, amounted to $119.3 million. Currently, Bally’s has $215.4 million available for use under its capital return program, subject to regulatory and debt agreement limitations.
Bally’s Corporation’s third-quarter financial report showcases impressive revenue growth and a renewed focus on profitability. The successful integration of regional casino properties and the addition of Tropicana Las Vegas have contributed significantly to the company’s revenue surge. Furthermore, strategic measures to streamline operations and enhance financial performance highlight Bally’s commitment to its shareholders. As the company navigates the dynamic gaming industry, its revised guidance and capital return program demonstrate confidence in its future prospects. By executing its plans diligently, Bally’s aims to cement its position as a leading player in the gaming and entertainment sector.