BALY - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the Bally's Corporation Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers ' presentation, there will be a question-and-answer period. [Operator Instructions] Please be advised that today's conference is being recorded. like Financial the Officer now Bobby over I'd Chief Lavan, for Instructions] to call turn to [Operator Bally's. Please go ahead, sir.

Bobby Lavan

and Vakil, earnings that With me Good today's Investor Relations are everyone thank our joining the for morning, website. of and of us on are Chief available call. in The Fenton, Robeson and Lee today's Manager; Regional President-Retail; Senior accompanying General Amit release are presentation President President-Interactive; Patel, section Executive and this Reeves, Senior and Development. Joyen call Design Vice call Officer; President you Vice on George Papanier,

Before significant discussed will we Actual would contain these risks from risks are and remind and the include to today These comments materially the statements. results estimates everyone statements; uncertainties. earnings filings. forward-looking These that begin, SEC we in release and forward-looking plans, results statements. discussed management involve made company's differ that by may in expectations, like projections forward-looking

call. due management call our will charges to in project inability our certain reconciliation expenses. our for replay live within financial We call, in forward-looking available contained measures schedules today's be completion GAAP during not provide the do will Today's are comparable measures to financial this addition, Investor the financial is certain measures. non-GAAP earnings of broadcast to being and also to special most refer on of In site included the Reconciliations after a non-GAAP release. shortly

Lee. Now handing it over to

Lee Fenton

we've progress the Jersey. We've the property combination New quarters the across our and Bally's you, portfolio months. belt to in everyone. three considerable rolled RSNs. since hello, brought the over And Bally's Gamesys. brand life Bobby We of Bally's under XX Sinclair out our We iCasino have now and past and Thank made

with as our progress. company develop And a bid developed Bally's casino deployment. together as foundational we brought the won first that begun its the of we a and and we Chicago. OSB set to embed We've one have DNA product further single downtown purpose We the in will

the a some segments I factors. we're of critical a we've our the generation company, to Resorts Since unified smoking. takes Interactive success International mask we Resorts, recognize and continued In quarter, to of be we and return our the flow significant puts turbulence, removal mandate of one going cash outperform Casinos into post had While our and believe reported business. continued now Casinos expectations, second more Lincoln we're number on and & of & of global

will million. be. to having where our hoped However, a is longer turnaround million of of positive of with we AC City take for than AC we want not versus Atlantic the negative $X $X expectations EBITDA it

go taken most there cost the which savings of we've of at annualized the the is costs complete. restructure our to Now And We've August, generate base should out from to renovation moved program forward. million property. $XX

line with luck better. by We are performance handle of was will The expectations. and bad on earnings the rest the heartened in there trend And some us behind recent on getting get drop. hold, portfolio improvements

margin by In we currency constant EBITDA comparisons and highest on slightly jackpot despite customer is performance in we're actives with bottom Interactive deliver at lower found making strategies through monthly quarter. far. July XXXX easier basis, the fourth still Our to expectations margin the a dynamic third more positive our good get ex-AC more enhancement. powered by enhanced year-over-year and learning. a plus The journeys for was so machine And progress June reducing XX%. of marketing ahead X% into the and saw XX% the UK in spend and bonusing International around

moved expect traction the improvement but we growth the consultation know more the quarter the has we sportsbook, period refer-a-friend in we from government customer Also, arrive large with at Asia. and World once all so await increased impacted and of that into thereafter. a recently Cup year end with in our of that in down delayed a led the lower-than-expected some program we from promotion was the new of FTDs half, soon second QX, back the currency then. were region. a as in experience launched UK to and we see beginning flat A September, affiliate mixture the As the to white our weakness paper that expect benefit uptake FTDs increasing

Europe. having to New in million and will harvest X feature Interactive still early with the North the in our our mode, continue without Jersey We June, had mid-XXs. margin of in in and is Spain of of UK, NGR have version product full BXC despite set the an iCasino ramp-up America the almost contribution rest of we down in wind the

to to grow the Jersey profitable New continue BXC rest expect year. We and of the be for

And states a the share in by rollout. marketing awards of creating will year, for XXXX the the will to rest marketing state a implementation with we those focus the and our North next and market our iCasino that a we regulate before With in in processing be targeting invest that sub-$XXX years. as of are CPA rollout. stack apply Jersey states Each we two in iGaming improvements, to New along model We after as will different we the X% and end Ontario, live resources priority. believe type, in payment improvements are of before tools. including well tech will each of this our focus our similar American blueprint on markets, X% omnichannel is is state Pennsylvania

Arizona months. live volume greatly enhanced higher in will over the Our of integration product the much now New be by is sports events and York foundational and sports of and coming

asset continues Our our player funnel evolve, collection. to unique leveraging

is on customer a continuous experience. model and and to customer and optimizing loop Our churn for engagement, costs focus the loyalty building acquisition minimizing lowering driving

casino technologies provide owned unique customers providing our integrate everywhere. continue experiences Over engaging a with unified rewards develop omnichannel to and database, the that next proprietary wallet year, and we'll

with Sinclair despite the players full relationship Our But the offering we've strong around free-to-play brand. broadly, XXX,XXX partnership today Sinclair point not from Sports. awareness advantage to promoted provides Bally more this of Bally's for to our taken adding

together our to and Sinclair working evolve our of a strategy acquisition down. design cost keep further product with build will and are watch-and-bet that We

Our the focus is on than the development continued our market aggressive rather strategy. product blueprints, of rollout and an

Chicago. wanted us also establish experience. gaming, to Now to in our a need isn't cover and to brand we a going omnichannel flagship everything the properties developments I provide online presence to few minutes true take exciting be Technology that

discuss that development. George? Chicago ahead George for over turn the road let it the So me and to Bally to introduce team

George Papanier

you Well, this thank thank Lee, us for and on you, joining morning. all call this

to downtown we annually, infrastructure the Chicago locally visitors Chicago. million through Illinois benefit for investments in winner City dynamic and little game. in the airport May Despite Bally's selected that gaming the to property State of our largest XX casino in the to being the of ownership, So US jobs were has change billion have direct of excess the XX and unique project. city improve generations from the city Chicago come. supply, a is $X.X with city will Chicago passengers many community city the That in of will for focused the now will gaming. build Demand third as with players the to in million leaving in with

the the Temple site of of open the is Chicago. of the XXXX opening We and facility that June a will will ultimately project unique location temporary Medinah in list Interactive heart and and at the Bally's support develop in facility. customer of The permanent help in

is property EBITDAR facility We to not The to scheduled And expect least is June, to in permanent open million at year open to $XX invest temporary in the to $XX projected first of million opening, Bally's facility. XXXX. deliver the any benefits Interactive. the counting of

expect unit unit just table performance positions have competitor. slot We of per the our respectively. are unit forecasts win win $XXX and and XX%, generating to These per of nearest $X,XXX X,XXX games, XXX

was integrate of rapidly North team, on higher American would the is Bally's from our the flagship brand would Board year business. and Interactive and properties building expect at that the factored that $XXX in focused retail digital. the in million After our XXXX, from being ambitions grow developing of for and We first brand least that very the Bally's in acquiring a property, between synergies upside support EBITDAR our

who Over Vakil, who two Joyen and permanent today year, seasoned will National was Patel, almost leading facilities. hired their has be most of we for With efforts. gaming the temporary executives office. from Penn years than Chicago casino are past me to development MGM recently Bally's XX of experience the with me XX lead Also experience, joins XX those and years Ameet with executive with development design overseeing and us and design years is and more

Bally's for up Chicago. hire continue We to

Over to join I'll market and discuss the meet developments -- discuss the abreast happy property. the the on and coming keep to introduce months, to will we to be of project, project continue to you

Now turn back I'm going to to Bobby. it

Bobby Lavan

George. Thanks,

Moving of minus to million million EBITDAR, for of reported Casinos $XX the includes City. This segment Atlantic details. quarter. EBITDAR in $X and Resorts the

That and Excluding with with XX.X% Las of Atlantic year-over-year City, margin. GLPI Asia when million triple rent net International EBITDAR minus our the XXs. the of of of for EBITDA associated targets The on million to Vegas. rent, $XX XX.X% line reported EBITDA, $X we September. become at staggering Tropicana was flat. quarter constant approximately were was at margins Tropicana, rent, currency in had of high a Interactive will on part X% basis close end a excludes UK

profitability discussed, America negative was to North budget, on focus UK efficient marketing and As had as $XX relative XX% we a highly million the Lee of spend. by EBITDA. Interactive off in

slightly Jersey than revenues, had $X revenue more X.X little negative a of numbers by states. New in million bit offset

on the removed business. states drag to the those play have free have We overall lower

our million including $X.X EBITDA North to losses. year. City, reflect the adverse actual EBITDA current to of reset updated billion adjusted to Atlantic in FX for of have $XXX the FX expect revenue first billion Interactive to headwinds million, $X.X We to be to in America rates, financial million At we and $XX be half XXXX $XXX results forecast,

of focus in cuts to the year. will months costs, continue five left occur but and only cutting We on some cost profitability with the

are for Las with year year. now into expenditures lowering on cautious Rent $XXX million expense the million Vegas from the We will of Tropicana the a million, close to rest more the capital rest September approach XX. $XX of the $XXX year, the scheduled be for to reflect to

quarter and offsets XXX approximately to debt options we We XX, tender, July of tender repurchasing you the incremental shares Pro the million. the forma shares million We are expense. EBITDAR, cash is Tropicana rent have previously million announced our closed shares the amounts On with million outstanding of we on common XX $X.X shares. revolver. million billion for expect in million dilution the and the and of ended drawn total $X outstanding million for generate our incremental a warrants, fourth that use. XX $XXX other XX number, of should of no and quarter X.X

all have ample in our America liquidity projects, the to fund We of and Interactive to announced invest business. North continue

hit Our to to of the long-term sale commitment EBITDA, which real times in GLPI. sub-five we expect be mid-XXXX. we announced estate At to to debt is June, end

For incremental now, The basis. anticipate the $XXX we proceeds is to tax-free million million in bring of sale million. $XXX that rent cash on $XX.X on a

We evaluate of that sale consent Lincoln as for would well. continue allow a to potential

forecast. at reflects In XX/XX/XXXX our Free the have year, future either website, $X a end which while maintaining sheet. and is flow we updated the to share Tiverton, expect We excluding significant earnings of guidance be $X in the cash get on Biloxi count Relations our new Investor With XX $XXX updated balance cash million of presentation transaction fund our in close from our cash our sale date. our rents and closing used near on cash XXXX. we three-year growth, million, XXXX from XXXX to of will the of

cash We balance flow and drive free that, on will call continue to sheet Q&A. to With to shareholder cash invest up value. the let's open this

Operator

Instructions] take our [Operator from first We'll Stantial Stifel. question Jeff from

Jeff Stantial

contemplate an declining further anchored yielding impact minimis to hoping Bobby I our in you've Thanks -- volatility de to certain an recall But X% sure to some there. the and I for just to on maybe EBITDA past a we us EBITDA. euro Hey, to any taking talked a and translates for good make Starting update way questions. benchmark just how on from FX pretty FX, everyone. milestones get given pound we could seem stay was how morning here? impact to

Bobby Lavan

Yes.

FX million XX% in and when off that's hit well. So, currencies you Asian factor is a as $XX

the Asian indirect business seen So, is USD, the but denominated in we've volatility significant consumer. from

a about Asian currencies it So, that million $XX at with look is you including currency should hit. where as

Jeff Stantial

Okay, great. are That's according things to on Atlantic it helpful. excluding sounds Thank going you. the brick-and-mortar plan. business And City then like

in lower better? there? persistent of QX in would stable? amidst gotten be Can relatively Has any the about certain inflation thoughts we're curious Just you that great. Just consumer it the some around update database with markets. end stayed we talked Has an get softening worse, the dealing

Lee Fenton

Sure.

think trends QX. have I Jeff held outlined the QX really that in we through

So, where are. that's exactly we

ourselves sure will eye huge strengthening the properties the of area year through in tight some really continue anticipate that to not softness, very because is the do costs. it we lower-income we but half would in we second have we So, QX and of higher that database inflationary end making there. bracing some We were QX. the had a to is as And But on the pressures.

has QX, increase as is. from we've see already in QX seen didn't been we So, what any

Jeff Stantial

I then for into planned Tropicana squeeze stay in might Great, that's helpful. or Any on really project deal just heading tuned one And more. the if there? close thoughts

Lee Fenton

we've for basis at property will the -- going run We to we as-is for the So, point I next XX the months least but to in at identified will have obviously future, that the some plan until said intend we the want forward. Trop, an the operate continue it's partnerships develop and we that that we we property. well-advertised on think

Jeff Stantial

Thank you helpful. Very Great. all.

Lee Fenton

Thank you.

Operator

question next comes from Barry Truist Jonas Our from Securities.

Barry Jonas

see from a Great. actually getting I maybe for Thanks. next can and the risks taking specifically touching around Maybe questions. to here? you Thanks risks supply about such? that full completion, And you project. Chicago for project talking the about inflation, on chain any my steps start had few

Lee Fenton

want you do George Sure. to?

George Papanier

Sure. direct Yes, George. the going who He's I'm project. thanks to the going oversee the this construction to to this to overseeing Joyen actually and Lee. Listen introduced going he's is -- earlier Barry development -- Vakil Hi question I call. I'm of in

just pass to going to over I'm So, it Joyen.

Joyen Vakil

everyone. you, George morning and Thank good good Barry morning and

the the have as project. good RFP project schedule feel the development So, of going into process, of risk while as we factors common phase the consideration on We the during the through the we about project. during we've budgeting taken were very many --

are continuing planned. as We

of the permanent that goes potentially to had leading in project. planned the Same meeting with the the construction on are all submission we of drawings We coming our dates September up temporary for on for finishing our for schedule then phase the and for facility.

tandem. We are working in

at lead look identifying all are factors at, this towards the work and -- we We well. into and the concerned, site we And as as that in to of as at to that stage we've far the need we look factors to point to all continuing items budgets need might taken inflationary identify well. that forward of the are long consideration some as escalation we as go have of we've taken

agency very as feel And the programs in are tracking same community well. we and well thing goes how So where relationships good got really with good are with we with very tracking outreach we as approvals are we process. about the process well. We've

Barry Jonas

you of around about numbers and you're both Great. EBITDA level confidence talk And permanent temporary maybe facilities? the your for the forecasting could

George Papanier

this Barry. actually Sure. operations permanent to going This both the is Patel again, for who over to be overseeing will George I'm the temporary Amit and facility. the pass

Amit Patel

Thanks, Good Barry. from George. your. morning, to Good hear

us. mentioned to earlier. into and and couple inflationary parts as two that on on keeping surveys I to a we allow there's manufacturers close the our just When the keeping number Joyen and items. completion comments And us long pricing the what of focus the and lead continue making now, numbers One how the at of machines out factors on our for As very slot right temporary chain the the a goes, look things far we've supply are wanted models manufacturers taken given key on. our the a facilities, to going we're eye of project. the as laser-sharp two, to who that our risk add of the cost pressures that deliver some is we're We've really you well supply temporary sure

machines and ahead we slot going actually purchasing are as We speak.

worry machines we'd to When to we City supply the the able is have in slot ordering in half of are In about We ahead chain our XXXX. stay make them process thought sure rather warehouse it of these themselves. have or first than the the that XX model our earlier the Chicago. to want that machines of slot we the next second numbers visitations alluded days, the to operating comes and today. the speak I think for in Barry, We be

all are that tourist with the Chicago. fast and of at first remember of that the beneficiary Illinois City we -- is in land, rate I'll that the facility very around we in Just and be reviving a are Chicago will temporary start of in the biggest the currently market operations

we which gaming promised community our Temple. the Medinah the what have our facility, numbers. as competitors do speak you coming months. the several downtown you city hotel do We participation six Chris the the City in our last talked fundamentals, to and of looked where Officer sign and city back hotel share very Chicago. at you look look We've the our based with operators. in have healthy city, with And temporary play to are When talked to with at the operators what key in the are location at going we host of that the XXX our Development will Chief city. they to if are the highest hotel increased agreement right seeing tourists fundamentals is of now, get positions at and the myself these of we to on math in Jewett, visitation have And those we reverse Chicago in the unrated nearest a have

the to been projected the who on win not this of an per when top unit here, gorgeous there. market that that And in now, have result, site, positions. we to look given that upside to On unit that we've district it be able to a a And the to the we giving games XXX as stunning per significant should the easily table those you on out have building just numbers revenue are tourist of and the we numbers there right win in And absolutely positions of slots expectation. we that at us and well. exceed number as going Chicago. the EBITDA heart we're you have we here city's on For allows deliver the that, that of is capitalize for

Barry Jonas

Great.

Okay. Thank you. that Really, color. appreciate all

Amit Patel

Thanks, Barry.

Operator

Our Chad Beynon next from question Macquarie. from comes

Chad Beynon

my Hi, good taking question. morning. Thanks for

wanted International impressive margins in kind I ask holding very to EBITDA First there. Interactive, of about of in the terms and

about So with kind you with of number have talk marketing seen you of users just you player? have the Can they off of on mentioned, little what the bit responded XX%, the Thanks. a that. to kind of How you're back as what ARPDAU marketing? reduction of the or seeing

Lee Fenton

Thanks, so astounding our reduced fact really circa the count FTD taken we but results X% heavily marketing in only having XX%. Really by that took Chad. Sure. down marketing down

any chase pressure sure making that that that were decided So further And spend. Google reasons. until we to be being of in into and consumer preparing real see inflationary forced was to And want some – we dynamics the which didn't the One some for did couple then down. Google it pressure, was changing causing might on to log in option settled there base. really the was inflationary had age-verified. and that for efficiency that a We we people we

continued. we we UK If you seeing the has in we trend reported some we consumer. QX, That said softening remember, when felt not were

UK the QX with to through we side There's consumer the on now as during terms the have we've pleased also in of efficiencies efficiencies. very marketing a base and July. been got where we've those well. in what We're So seen strengthening of some bonusing

year. the we absolute the the consumer of for with strength So confidence in get until for rest that we'll continue the strategy of now

Chad Beynon

can XXXX. then And X% New Bally's given that Lee. market pretty you X% to the that with to Thanks, to Jersey just the get your by confidence a What's level US it's goal that competitive given you turning market. share

about You for are that have goals how some and that, Thank other and competitors should And we other ramping. beyond you. Ontario? markets Pennsylvania timelines like some think then

Lee Fenton

listen, trends today. for going can there. so an would Yes Jersey we're you. today of We're what share get probably target. it seeing the we think From circa in just Thank X% Sure. it. is aggressive We below that New all that market

we So take XXXX during and market that double can further. think actually we

still you Gamesys And X.X% we is with casino trends our on Jersey some the are Tropicana, remember, database. market. to New of not like New upgrading we're product terms working strides in real we cross-sell the parity made way casino If in terms in And The think seeing share in we've excellent can I our product. Jersey the with that UK. was of when

that omnichannel we UK the And rewards tying so the we in we're have market still what features as well have program. in on migrating Jersey New upgrading side as and over to the really

to now product to up more been great. more develop XX a the We've a lot to and over omni bring months. next the got lot trajectory So has

the in that's in what's driving Jersey our confidence really – New So market. or that

of go content do lot over integration that to the more, the there development is technology we'll our but We're on works sports a between next that we're foundational what events product with doing I that The is new a massively need product. on blueprints what we're need of and we In pleased OSB basis. developing create the well, Gamesys next terms that the as state-by-state product, feature increase right? months of to to put volume And focused together we comes to see want said on that we we three do. and still further. So

want the and those that will we've we're than cut dollars marketing developed think keep marketing product back to through, going that get dollars So against we rather to stage spend the really don't go we to product there. until the

legislate expect right? And combined we mentioned, well our a So app of for the Actually, gaming sports where course, quite where will going exists. gaming, out and next think to where place license we'll is looking and as We during for anywhere already of as our be in half. at first what we we'll of over deploy ago. years comes I or that iGaming Ontario, product our second we're the next, it done well a looking Pennsylvania we a where launched going terms where around leaning as And Ontario the next an will gate be into the two web-only the it's I In our weeks be couple of we likes Illinois be we Indiana can property the think year, think and well. into of focus on make progress. as

Chad Beynon

Appreciate great. for That's all the it. Thanks color.

Lee Fenton

you. Thank

Operator

from question next Deutsche Ricardo comes from Our Bank. Chinchilla

Ricardo Chinchilla

First provide analysis you item. was for holders the one breakdown a purposes? if covenant wondering housekeeping using debt EBITDA for I the could

Bobby Lavan

that Island We Rhode but EBITDA is million. don't LTM have $XXX

Ricardo Chinchilla

Perfect.

have year Vegas? forecast you and you Tropicana that into little implied XXXX for next it's million that, that I Atlantic rent for $XX analyze $X per for million. Moving million City Las color bit XXXX we into have what's but of like the could Because you the and it's please like and $XX a more quarter provide almost see

And was I is next is to earnings So property going opening accretive to according your when for how Pennsylvania wondering into be that the year? estimates?

Bobby Lavan

Yeah.

goes XX% IGT, year we about the to so XX%. million rent EBITDA of Atlantic do associated is Tropicana, earnings neutral. generate years will million which to We believe, very two our factor City, today So from get property it viewing as in is $X properties. today $XX.X the it next million million do of will next $XX the seasonal on generates in JV and the EBITDAR, with to $XX million $XX is way $XX we we're million to with

have of on the International some XXXX $XX as Interactive million white been six dynamics the of flat that, paper. we sort work the as sort underperforming. for into past We months savings TBD through with implemented we cost view do hold of and So has of

$XX great million in turn be There projects sometime the project have Pennsylvania the in your to will assumptions And are of So a we XXXX. next not $XX into that – million year. lot range in aggressive. in a on just

Ricardo Chinchilla

could please the the provided for you that little you Biloxi selling more of could based like rather seems fine sale towards sale leaseback than going question comment that, that? and Could for from what for thinking to share are incremental the the advantages for what sort of, that strategy? And with bit Last money your about be of – the Great. forecast Lincoln. on Any company mandate potentially uses repurchase leaseback transaction your do money the are or a me. proceeds strategy for regards commentary what particularly the on you guys have Lincoln? on you just the with It of

Bobby Lavan

Yeah.

So transaction much $XXX is the Biloxi-Tiverton how the million. transaction, transaction $X was that was on billion. The Lincoln-Tiverton billion too pay $X down bid-ask on But wide.

And liquidity-neutral so effectively, the Lincoln transaction was to actually worse. slightly

win. to get We're company agreement, awesome is with JV momentum building. of the our reasonable say, to from we feet do flagship Asian is property. play a the getting a of behind, so unless I square our better some we're back Lincoln sort Tiverton-Biloxi, IGT for do of it's lenders. And Lincoln bringing leave of sort XX,XXX The

we next the million. a and So From growth tender or now from of for year a sort did do a $XXX share phase on of leaseback years Lincoln two fund -- sell sale repurchase the the maybe company. perspective, do we to

shareholder to value. We will to drive consistently shares help continue buyback

Ricardo Chinchilla

much so question, taking you. Thank it. for the Got

Operator

Fargo. Dan next Our question Wells comes from Politzer from

Dan Politzer

morning, Hey and taking questions. good my thanks everyone for

Thanks. what you seeing different for I But of across larger wanted hit maybe terms and environment properties, question markets? are and George. in your promotional regionals the on across a the to competitors is this from So smaller competitors

George Papanier

Sure Dan.

only that, point to they're little earlier a is you for good at a is, Lee think improving. look data but said of I kind are stabilized what margins not

net So, AC think margin. we're I at it's XX.X% of XX%

the about get the in their focus So kind population your of closer really in, if little Encore Rhode question of around regions at of look to on operate kind -- towards you to shift we kind granular focus we're if Island the their to you of market that a them. or starting density ask seeing answer really

touches edges So of market. the that our only on

has really on influence But activity see Focus activities. certainly play any market that promotional activity free that and to have don't so the really -- on we impact on certainly our And as well. we primarily no it continues perform. promotional

protected at of If region, you would pick it's I somewhat look another market. a Evansville,

cost predictable. pretty our there So, is structure

profitability about revenue. and we're as our of Biloxi really maintaining drive higher comfortable margins that our continues well database. segments we're as there, So, to from

that like worth. higher earlier at a lot spoke on we're I'm just segment. to structure you focused our no trips about market improve want the what driving of the eliminating focused -- when driving Kansas share so touches to we're that there forth, saying City cost not growth market more And moved buffets detriment that's That from another little It's continues end a is really market to and think is actually. share at portions really as the I on So look things the on you it's and dropping operations. to database, look of of higher line. but bottom focused we lower at, the not trip customer Lee which that the

really operating I time. guess our So, model about at in comfortable we're a this nutshell,

of of that. be way to is markets. seem of be would example that markets a lower only Vicksburg the performing household by not kind income -- other well, good as Some demographic

Dan Politzer

just states into integrating be Got Thanks. how the it. into to maybe launching And York components you more New then media And year? on about to any a app give Interactive. next progress your appetite switching think additional might offering? the have you Sinclair just early to that competitive Can go color

Lee Fenton

Dan. of Thanks a Sure. earlier. mentioned the states I few

pushing which UK, I migrate that live have of high I that said we we've which states, we Jersey, is believe I years. have we're an legislation are now enhance of things from live got going very think across volume been the over chance states product. a content one. heavily that haven't the to either mentioned much a couple ones and today. Indiana all next in well interesting to do. Genius likes iGaming As we iGaming in etcetera said one we I can we still obviously into kind for coverage want lean still higher of or today The iGaming And that radar will and us bring terms of to Even product New that in I've From hard sports. of where coverage. we be view York IMG have lots Arizona and over exactly integrations coming, of RSA will behind it how firstly, quite is both to have heavily the casino because point the we where the a spend isn't of product in said twins spending development of New Sports that product any they're product or our few

So, that's means we June app that we've and pushing We of important. richer which of that drop app. lineup course, and features much when did are that, continue for of foundational further got drop until have But number app. us. been became event a we That features fifth will of it we that think haven't that into a develop inside our we said, that in to

where will of terms be for road sports a map in adding to in So over us can we Jersey of -- next, time. New we terms

will half Ontario first app Illinois. adding said into will to well We the combined Pennsylvania in Indiana second of leaning be to I as the and be year, our that then sports as into

Dan Politzer

detail. it. Thanks for the Got

Lee Fenton

you. Thank

Operator

from comes Our next Cowen. Navarrete question Jonnathan from

Jonnathan Navarrete

you morning. This our for in question. is Jonnathan Lance. taking for Good Thank

headwind mentioned -- we is, the -- got The million that like correct first $XX could one this FX oh, international quarter, Bobby year. for you a

Bobby Lavan

On an EBITDA basis.

Jonnathan Navarrete

then two? And quarter? the expect what next can revenue terms we was Okay. for in the of what the impact And for second

Bobby Lavan

was a was minus basis basis a Interactive XX% X%. on floating International for minus Revenue constant on year-over-year

So an FX incremental related X% that is to issue there you hit, a currencies. with Asian but there is FX say can

and operate currency. lives we in the Asian player but So thinks do USD, in

those ultimately back. pulled definitely consumers like so And

XXXX that and not so more a is related. related or that's guidance directly that manner. headwind thinking They about and effectively And is XX% there into assumes different But currency our translation are that thinking is a FX some the operating issues we're consumer are it. how FX in

Jonnathan Navarrete

we can next the two sense. that in in in? here like incremental would expect -- quarters, quarter makes That be we on improvement from Sure. of expect the the for or lowest, And terms an can international second

Bobby Lavan

Second is quarter the low.

the is lowest. quarter Second

Jonnathan Navarrete

and what of in understand look kind opportunity will. want Understood. downstate Then in an could York update would terms bit an can the a like still are a thinking like to or property share. be I potential casino. of guys in you to But on probably you you're little New limited maybe know just how of about investment sharing like if amount what you I

Lee Fenton

Still interested it, it, still exploring in looking sites. at potential

in to Of it's in but at very early later that, begin year. much the next year are development the participate course, we or stage expect process to And moment. the RFP minded this we

that -- no say So further to on now. further nothing right

Jonnathan Navarrete

the from into last regulator, coming changes my it what expect your nothing UK, a will perspective? or And can the should -- it. as in UK stay any are one we from prime if course and change new Got with minister the gambling

Lee Fenton

of mean him. party, work completed, prime radical So already minister, new A right? from same through lot on I trajectory. been ministry. current shifts departures of minister from wait course, whoever the expect has I any don't September succeeds trust Well, it's the expect have we'll [ph] see former prime And to with to relevant the we and wouldn't whether but X, radical

winner other our from everybody so to to we'd we're I know like UK and many think we've many, there. be we've working following here. We'd a done and the months stability. been industry's the And the we'd same got regulatory over in it the what the net get the and had like with. get we -- like side I be from perspective, it what said that I've times to out whenever perspective shift exactly in expect consultation Everyone's XX to

Jonnathan Navarrete

you. Got it. Thank

Lee Fenton

you. Thank

Operator

Jefferies. from comes David Katz question Next from

David Katz

performance the more the taking the Can is a bit in my right? terms for strategy Understanding about to we Interactive versus talk Where to and you trying broadly land-based get Thanks clear. questions. strategy capital are and morning. just Good What you leased? six owned with, out stability years, to some three how leverage one some of look obviously there, you sort et progress like? help year, over months, can next there's the but that expect us does that CapEx the repurchases, if And of cetera?

Lee Fenton

David. pick Thanks, up. let that Yes. Bobby I'll one

Bobby Lavan

Yes.

into upside Pennsylvania, XXX is of million you IGT, EBITDAR Chicago. you sort City, Kansas XXXX, from rent go of plus on in factor when $XXX So, Tropicana

of assets pay strategic But our go invest believe do if at asset a day, would me XX we we we then that is the the to So, for the company. real are the end and do Lincoln, that asset core projects. willing under in estate times of land would somebody higher-return that. And

Our is internal XX%. ROIC

still five, tell in And has I'll Las buy what we've so, assets the we or in which Vegas. EBITDA. we times climate projects return for is can six We're which that. Chicago can volatility market M&A if also brought do clearly is the you get But really something there's that to evaluating the back, proven

so, times And to synergies, attractive opportunity. balance six very fund use that's our of sort sheet before we to a EBITDA if digital can five

focus said a As be by leverage I in and we mid-'XX. times sub perspective call, the EBITDA from on will we do five

David Katz

much. Okay. Thanks, very

Bobby Lavan

Thanks, Dave.

Operator

from question last comes Securities. Our Jordan JMP from Bender

Jordan Bender

of And that the Good morning. any well? question. a ruling there? white kind quarter, my To any guys taken of the as taking comments, maybe on actions Thanks related the reduction preemptive was to have ahead for follow you up in paper maybe marketing of

Lee Fenton

white on Thanks, Sure. years, for We've Jordan. I preempt the three the been about Yes. think. actually last paper taking

I states UK. been now altering payouts in at that earlier, business remember across we're kind during mentioned white which across and be more our We've more well So, white the reinvestment the sets that into actually prepared it. slot think of reducing the we -- I the evolution means a for different players, just going strategies, the also lower strategy, We've important going are quite business which And at time be thresholds to of been to to for which moment is the jackpot we once feel I consultation. come will but stake of which players, to very different get moving into works max think paper some levels. the in £XX gradually paper, for of because

over I filled think a details us will but the then, that in give framework, get will time.

had So, to and we've made we've yes, lot of might enough mean actually UK I for that more prepare for think against what this market in us time progress the that. than a

Jordan Bender

America North for year. $XX I guided the $XXX for Great. was loss million to still And about the then, year. the for you that is place. million in reiterated Interactive wondering, if wondering, you I was the previously

Bobby Lavan

can not For to day, we're I focused end do mean buy at but we going revenue? just revenues. go the revenues, not of that. Yes, the on we're

Lee Fenton

Yes.

more So we this will revenues getting our but to quality invest development the that to and not of in It's the Our for focus believe we is that's the continuing time, the that. into on about And are very much product, in right further right? depth. right of focus markets over the product us that year. then, come that

Jordan Bender

Awesome. Thanks, Lee. Thanks, Bobby.

Bobby Lavan

Thank you.

Operator

at questions more [Operator this no And Instructions] time.

Bobby Lavan

some Thank road next you, operator and be the few of and thanks Thank you months everyone. We'll GXE. you. on hopefully see at the we

Operator

and gentlemen. ladies conference. you, Thank This concludes today's

disconnect. You may now

Bally's (BALY) 5 Aug 222022 Q2 Earnings call transcript