Bally’s Corp. posted a loss of $173 million in the first quarter of 2024, released after the closing bell on Wall Street. This triggered a decline in the stock price from $13.16 a share to $12.80 in after-hours trading.
Company-wide, revenue increased to $618.5 million, up 3% from the first quarter of 2023, when the company reported a profit of $178.3 million. Cash flow was $148.1 million.
CEO Robeson Reaves hailed a “solid performance” and Bally’s “robust core business units.” Casino and resort revenues improved four percent to $342.3 million, United Kingdom digital revenues were up 12%, and North American interactive winnings shot up 70% , to $41.5 million.
Reaves blamed the Asian market for a 4.4% drop in international-interactive takings, while saying of Great Britain, “Our strategies play out, reflecting the initiatives we adopted in contemplation of the White Paper implementation in the UK.” Of the Asian softness, he stated, “This reflects our strategic shift initiated last year, where we focused on maximizing profit yield instead of pursuing uneconomic growth, resulting in challenging year-over-year revenue comparisons.”
Bad weather and adverse hold were blamed for poor January results (margins of 24% rather than the usual 30%). A ramping up of Bally’s Casino in Chicago was credited with offsetting “impact from the continued deleveraging of operations after announcing the pending shutdown of the Tropicana” in Las Vegas.
Looking ahead, Reaves remarked, “Outside the UK, we believe our operations in Spain are well positioned to benefit from the recent removal of advertising restrictions, which will enable us to increase our investment in faster growth. We also anticipate the further stabilization of our operations in Asia with an enhanced [online sports betting] offering to complement our existing portfolio.”
Last month, Bally’s launched igaming in Rhode Island, prompting Reaves to comment, “Revenues in Rhode Island have ramped nicely through April in accordance with expectations and we believe this momentum will continue to build through the balance of 2024.”
Added CFO Marcus Glover, “Our financial results for the first quarter of 2024 demonstrate the strength of our diversified business segments. Bally’s operating teams remain focused on reducing expenses and enhancing operating efficiency.”
Company executives also cited expanded shuttle service in Chicago, the introduction of BallyBet to Bally’s Evansville, and a forthcoming steakhouse and VIP lounge at Bally’s Atlantic City as potential revenue drivers.
Bally’s revenue guidance remained as it was. The company projected $2.5 billion in 2024 revenue and cash flow of $655 million to $695 million.
