Key points:
- Total Q3 2024 revenue reached $630m, a 0.4% year-on-year decrease
- North America Interactive revenue rose 54.5% to $45.7m, despite a net loss of $247.9m
- Casinos & Resorts revenue fell by 1.6% to $353.4m
Bally’s Corporation reported revenue of $630m for Q3 2024, a slight 0.4% decrease year-on-year, reflecting mixed performance across its business segments.
The company's Casinos & Resorts and International Interactive segments posted revenue declines, while North America Interactive saw significant growth.
Despite these revenue shifts, Bally’s recorded a larger net loss of $247.9m for Q3, compared to a $61.8m loss during the same period in 2023.
Adjusted EBITDAR fell from $476.2m in Q3 2023 to $166.3m in Q3 2024, partly due to a $150m loss from a lease restructuring in Chicago.
After reporting these results, Bally’s stock price increased by 0.69% to $17.62 on 6 November, indicating investor optimism about the company’s strategic direction and development projects.
Segment performance
- North America Interactive: This segment saw a strong 54.5% revenue increase, reaching $45.7m for the quarter. Growth was primarily driven by positive iGaming performance in Rhode Island and Pennsylvania, with some offset due to weaker results in New Jersey. Despite revenue growth, the segment posted negative adjusted EBITDAR of $11m.
CEO Robeson Reeves commented: "On balance, we remain very pleased with the ramp in our iGaming operations in Rhode Island and results benefited from excellent performance in Pennsylvania during the quarter. However, we were impacted to a certain extent by softness in New Jersey. Ultimately, our iGaming product offering and Bally Bet OSB continue to garner positive player feedback and we remain excited by the long-term promise embedded in this segment.”
- International Interactive: Total revenue for the International Interactive segment fell 5.3% to $230.9m, with declines in non-UK markets, especially in Asia. However, the UK market achieved 11.8% growth, driven by high active customer levels and strong Average Revenue per User (ARPU) metrics.
Bally’s recently launched a second online sportsbook in the UK, reinforcing its focus on European growth. Reeves mentioned during the Q3 earnings call that the company aims to establish a stronger foothold in European markets, particularly Spain.
- Casinos & Resorts (C&R): C&R revenue declined by 1.6% to $353.4m, with contributing factors including disruptions from local construction in Rhode Island and weaker performance in Atlantic City. Kansas City operations also experienced lower-than-expected hold, affecting the overall results. The C&R segment’s adjusted EBITDAR decreased by 15%, reflecting these operational challenges.
Operational developments and strategic adjustments
For Q3, Bally’s advanced its large-scale development projects. The company secured $940m from Gaming & Leisure Properties (GLPI) for the construction of its flagship Chicago casino, with demolition at the Tribune site underway.
Construction for the permanent facility is scheduled to begin in 2025, establishing Bally’s long-term presence in a key US market.
Bally’s is also progressing with plans to redevelop its Las Vegas property following the demolition of the Tropicana hotel towers, which will make way for the Oakland A’s new stadium.
These projects, positioned in two of the US's most significant markets, are part of Bally’s strategy to grow its presence in high-value regions with favourable demographics.
Conference call insights and future focus
During the Q3 earnings call, executives including Reeves and CFO Marcus Glover highlighted Bally’s renewed focus on North American and European operations. As part of this strategy, Bally’s recently agreed to sell its interactive business in Asia, shifting resources toward core markets in North America and Europe.
Reeves commented that this decision allows Bally’s to reallocate capital more effectively to Western markets, where the company sees long-term growth opportunities.
Looking ahead, Reeves described Q4 and the remainder of 2024 as an “active time” for Bally’s, with a focus on capturing new market opportunities. Glover also mentioned that Bally’s expects “continued improvement” in the North American and European markets, positioning the company to drive future revenue growth.
Earlier in 2024, Bally’s reported strong Q2 results, with a 94.7% increase in North America Interactive revenue and steady progress on its Chicago and Las Vegas developments.
