Earnings call transcript Q4 2022

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Operator

Good day and thank you for standing by. Welcome to the Bally’s Corporation Fourth quarter 2022 and Yearend 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 session. [Operator Instructions] Please be advised that today's conference call is being recorded. Instructions] [Operator

to for over Bally’s. like Chief Bobby the Officer Financial Please turn now to call Lavan, I'd go ahead.

Robert Lavan

afternoon The Chief Robeson Papanier, presentation With me Good on Executive Relations section available Officer, operator. and today's website, for Investor President. you Bally's Thanks www.ballys.com. our joining in today's the call. George this call earnings Reeves accompanying and on and of release call are thank us are incoming

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

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

me Let hand the call Robeson. over to

Robeson Reeves

for over the leadership his past first Fenton I Lee Bobby. years. thank Thanks to want XX

excited our He and and of great are traveling much have the we the York States been other We him. omni-channel months. from be in relationship here wouldn’t look coming to friends. to mentor, the without has We global and today be to working are and meet parts learned New I'm him. investors a wonderful forward I've so great to leader

be and continuing properties cash is inflected & a on to businesses CapEx George database are for team coming at The track. a done business the job while our Resorts. generation are has in one. the the Casinos have great interactive together to portfolio's We three that cycle build on

building game Bally's the track on will facility gaming demand the us We this be is $X.X test will in which in will opened first Chicago. Chicago, up the be of for and billion year to execute for pent be XXXX. The on temporary changing

International market. share, first Interactive in XX% are slow new of bigger has changes with been Regulatory the the the well to UK the business the optimizations but market I away really and started foreseeable believe continue we the will XXXX, jackpot in after and quarter quarter of the operators in the a UK gaining the growing dynamic ahead driving strong, fourth a marketing operators trend going the smaller future. for executed,

the recently in business with In and and year-on-year Asia, their we January. team added positive seeing we're of the labor fruits the to already December

our some of and invest into earnings America. opportunities Latin of higher will in world We growth rest of Europe, rest

first this push year. In America, all opportunity of we also as North The focus Interactive. this an to in Interactive. we but was restructuring primary January, The announced a will saw of streamline this be

more a for my our to and near a results tight having also is move how dependencies on continues. With team, the have investors. priorities plus allowing deliver reworked, trajectory amongst and iCasino America competitive we'll thousand teams completely long-term and In been complexity. and grip me prioritization. has pipeline a development developers, upward effective technology on Our Fewer faster reduced North

to and trends started We've new very markets look accelerate too. of and New iCasino to be further half to launch the first Ontario first. and similar. Our will payment options business Jersey in in methods Ontario very, across other has plan XXXX Pennsylvania other continue with in

happen again. enough acquisition recognize product. fast We there, to required will platform a develop give did we not didn't the not sports, the react On that competitive Bet.Works and us this

tool. more We out five us drive and brand. analyzing an and spent Sports the confident have acquisition engagements Bally's solutions there for can are them is economical deeply. past are months It there the further nimble for

we'll of have mindset. sure we we make when technology, the that So approach choice

will how you wondering I'll lead be the of Many business.

analytical to me expect follow and should that harder. with the will solutions. data. asset profitable deliver making You I'll to on decision approach scale is I focus. our in them I after go be focus believe most valuable the customer-centric opportunities deploy to to

time on growing profitable way, we America budget, global. taking company Interactive and a North in markets the omni-channel the opening outside Chicago prioritize, of our data will we'll of As and America sports North prioritize Bally's for temp a on capabilities,

to Bobby. going over I'm Now to hand

Robert Lavan

Thanks, Robeson.

reported the segment negative the to for quarter. $X.X Moving million in EBITDAR EBITDAR $XX details, of includes Resorts of Casinos AC. million & This

thirties. AC in line with Excluding our $X margin which of XX% the lower EBITDA plus portfolio, were to properties of are quarter, charges properties, portfolio margins core million Comp Tropicana, and for which for in high Workers' included the be the forecast

margin. had at was were by costs UK the in UK was XX% XX% CPA approximately constant the pullback streams International Incrementals Interactive a and revenue million a The and Cup. low up on basis, on of with EBITDA X%. marketing currency $XX a due International year-over-year driven to World up plus return

expectations including some XX%. long-term greater We Interactive International resetting where markets EBITDA are margins invest of than on the some these new will into record for margins be we to our business,

XXXX North will with and negative portfolio EBITDA. America league fees a new significant access large restructuring, with by we million offset from $X higher In a sports audience. Interactive of streaming cost our had a partially have saves

updated America At to to be revenues year. actual have FX the the rates, Interactive North We and billion through reset EBITDA XXXX to losses. adjusted financial $XX million million million, $XX of beginning FX to America million we $X.X forecast $XXX EBITDA North billion $X.X expect and current to current be reflect results to of $XXX including our rates, the Interactive in

to $XXX which profitability shares gets about shares Common streamline software XX other outstanding million, continue XX about of million we warrants on we and million, be development $XX incremental have We which includes million, to us million. cutting which to are and to options outstanding. and to focus costs dilution expenditures, continue costs, and million we $XX XX.X approximately of capital expect

We and for our January this that forma closed more $XXX on cash on $X have sheet than balance Tiverton Biloxi billion of transaction, we Xrd of the of debt. year. sale million Pro net

We announced Interactive. invest have ample liquidity to North fund in of projects we'll America and all our care with

to in Our we long-term times commitment hit five which is to debt-to-EBITDA, be sub mid-XXXX. expect

Q&A. With Operator? it now up that, to I'll open

Operator

Certainly. will first with [Operator And from Daniel go Fargo. we Please take question our Wells ahead. Politzer Instructions]

Zachary Silverberg

Dan. Hi, this Silverberg is on for Zach

you successful? marketing, Was success made of UK? would et commentary the what cetera? you it couple the of Any can has be a from in product, you've the the One, me. talk about Just had Sort sort great. recently

Robeson Reeves

consolidation seeing there spends so targeting from Thank operators are customers you. stack. very share frequency. more Well, come with our really with tech by happening. the taking also leaving great solid market We're visit some We're high effectively market, is quality

see revenues the So is leaving and markets. by robust we this traffic very we're gaining people

Zachary Silverberg

this your ring. that. one or or have pursue to us you casino? Thanks. any to commentary remind hat the guys I appreciate for do expectations update more, of in rationale just just And the newer throw or And a just

Robeson Reeves

I'm hand going George. to you. to Thank over

George Papanier

a relatively so participating put looking the just Obviously RFA Chicago. Yes, potential market. a at well listen, great and in Robeson. that together in a bid huge of process. coming see Hi, is quickly two-site we Zach. the it's we currently approach, us The in off public that bid. Chicago could Thanks especially moving process a we're process worked We're for

specific of into we're the So any going process. potential it's this strategy at but something time, market. see in the But that we to not obviously may be get duplicating this point in we

Zachary Silverberg

you. Thank

Operator

next Please take from go We'll question Stantial with Jeff our Stifel. ahead.

Jeffrey Stantial

update everyone. good Hey,

by really here forward luck working and Robeson, on on Lee best more next closely congratulations together Let new me just role. start off I'm your endeavor. to saying looking the of

hitting experiencing business, off one to quarters. on and how Starting sort after a into reopening us competition the of looks consumer the context these you whether you Interactive point tough XXXX comps, difficult market, International inflection Robeson, bit a provide you have FX, an some update for couple in it's maybe you've been of here, your some factor Japan just maybe on you, Could general that guidance? of be for malaise, what headwinds

Robeson Reeves

degree to market. now. to see Japan, sentiment the We this back we in a us traffic of so Yes, slowed new coming saw

We have hopes market. share increased margins the of control improved good They I a share got changing. we've our high somewhat, that in and our don't have maintained I that see feel actually for Japan. have I very there. positive and Yes,

potential. fantastic think it's I with market huge a

Jeffrey Stantial

growth for daily, helpful, cohort. X that's And the That's, switching some to Theo, great. here. thank presentation, out XXXX Two then things, age brick-and-mortar rates you Slide questions side follow my in of the you. lay Okay, of for by year-on-year up,

trends what same-store perceived a is consider? this phase. perhaps I then issues want reopening the to that seem share And to are the demand second, better wallet demographic younger is rather was initial be clear, be the during there forward First, or bit a term age tailwinds mix counterintuitive pull or given maybe to some just for be to calculation

late So a observed and in to see George, what could you cohort XXXX what these by in you've more anecdotally the differences just XXXX you maybe maybe talk more just bit driving timeframe? type into growth age

George Papanier

Sure.

in seen all, which seen higher the the size growth accounts of in demographic the first we've for in size. customer, increase We've the So customers. unique growth or wallet

good feel we So that. about

we've seen little the to, happened the skew on the that's quickly time, strategy plus our responding customer unique focused referring we've COVID you're customer, as game table tends what same as XX and towards bit so far more pre-COVID to demographic geared since younger. thing the that as is, As we've, at XXXX not a

which result revenue lot to taken we the know strategy a reenter you games a out assets are the to table little games focused recently of into We we've lot our our was bit a of markets demographic. a lot of we've market on the as opportunities and a table philosophy's where primarily in our heavily portfolio a acquisitions for a growth a that also really little get and as decided that and And in seen seen success, that has games. lot of we've different. we've newer, we growth put market acquired table kind Asian more of to start the bit We, the on our that newer accounts the our focus of been

Jeffrey Stantial

you on. Thank I'll it helpful. very that's Great, pass both.

Operator

Barry from Please question our And with next ahead. Jonas we'll Truist go take Securities.

Barry Jonas

great. you Oh, Robeson. and Thank congratulations,

curious know, of your you Lees? You I'm start, approach see and similarities differences just the in some as what versus to major

Robeson Reeves

to feel that across time I our in hard. being really this my are assets leveraging to said, analytical technology and change, strengths, that strengths. data. hitting question. so a in I've drive make all as and the Great They're data we when sure really we're further, highly the is making our play My of I'll just it

push and with numbers, bets hard aggressive but forward there. into our smart and the will very revenues exceptionally very, can make I drive focus. my we long-term. then the speak That wanna we'll So be business our and

Barry Jonas

America $XX I I to deck potentially something by then million-ish up And hitting Interactive. follow just great. Great, on so. shows XXXX. wanted believe you It like looks North profitability or the around

any there? kind how you can if you curious of Just Thanks. share assumptions get for

Robeson Reeves

described, real spots as some So we've bright iCasino. we've got in

example now us is It Bally's million Jersey, So beyond perfect per grow ago. GGR over in launched for to will that. iCasino just grow continue It and of at continues New it to $X month. XX months

Ontario. live in we'll seeing and be half. We're trends very We in are the there, similar Pennsylvania in live

we going the make but not our to but previously. in the play made for haul, in we're it So absolute strengths mistakes we're iCasino, same long

So we do profitable options in way. are it most looking the at to

are we costs don't are directly what's is because think considering you that need revenues. lease correlated and all that own to with options about now the we So great

very in our approach a and play to that. going we're are So shows take iCasino. know we're Everything can smart going business see strengths we fantastic to you and we our to that in

Barry Jonas

much so and Thank you Perfect. congratulations.

Robeson Reeves

Thank you.

Operator

question our from Montour go Please Barclays. And we'll Brandt ahead. next with take

Brandt Montour

in a necessarily Hey, around. and congratulations like-for-like in for everybody's looking not which taking evening Thanks your not, start and about iGaming good deposits questions. I everybody. at in seeing shows slide this know, you're I growth to sentiments I great you we're was with echo deck, play. really was all the hoping maybe growth

understand so in that missing And a sort usual just as little curious, or if yes, that a is been just us piece markets just in that's of there see market a a -- lag you've longer, what faster in cadence? long the you need that typical other a to convert you help dynamic that

Robeson Reeves

is deposits a lag directly there convert general revenues. into your Yes, to where

You have people to build proposition. your in get firstly to trust

they So will people withdraw spend trustworthy will they bank, there with Once you're you. realize they a keep bring money money, money. and as their money all as they that the

have believe see that over time. big our winners trend, truly you'll percentage in that at will with that grow some big will but I what we So us we is Jan. continue hold had winners

these and see trends time. smooth over will change We

Brandt Montour

a casinos low in you behavior Okay, any tell across the thanks you. side What end for of us unrated high on be that. at in seeing And of you're near-term in maybe of the things. rated just you retail versus terms database, helpful? would database question seeing the interesting database traffic the changes different the of be the Thank can might end

Robeson Reeves

Sure.

see, bit for So the, to younger little database, starting bit is to shift what the lower, we're transient other see play. a end a getting of little primarily we're the markets. little a bit demographics in kind seeing lower of than of in a starting age kind We're our

rate focus the play. segments our noncash versus type of on speaks towards of So is non-rated But, our part business. that

think to our that for more a I come of primarily, a non-rated towards as F&B activities. database to that's our comes higher skew bit starting other they frequency and little our properties So non-gaming hotels, play

starting So that see kind portfolio. through proliferate to our start of to we're

of big of other programming, consider lot we COVID part of reset the more the of out certain part deals I the promotional promotional fact that from the a I be entertainment. think that with programming. pulled to and buffets a

to starting that's but only a focused demographic. wallet. the a you're of away So on And the not we're skew to end want, little customers upside, that providing amenities and higher visitations the size bit to from the of also shift lower the starting that see more

Brandt Montour

Okay, thanks for the all color.

Operator

question go ahead. our Katz from take next Jefferies. David We’ll with Please

David Katz

partnerships you deck on afternoon I in what been might some please. Trop love and would everyone. Hi, good interesting all any more ask interesting, have discussed wanted a envisioning topic off be of Congrats, that. good you Las terms that the of or to years Vegas or a number evening just of further that's scale the color. thoughts I your and in slides would It's for in on about and dollars and be

Robeson Reeves

George. Yes, for

George Papanier

Hey, David. Yes.

So listen, were national necessity be want first a a to we've used as we we Las company. since Vegas not,

company, we that a added long-term really run to what it flip define We pays Bally's return for We would to help and to us provide bought brand long-term wanted to. could the certainly are a very at we national a if as good the and it price. option itself. We it could a customer. good we We

We're earnings company, in a you've very I think disciplined that heard other calls previously.

is, appropriate and long-term So the patient mistakes, looking be well, going not for in we're right people's the project that one to interested other market. thing a about return have with opportunity for this we're we on sure view and for duplicating investment, for

something some as is we [indiscernible]. appropriate that return in the having be heard focus having have be on. may could We've But with potential other there. been discussions the to with press we we've the other that with on sites You do been going anything so discussions again, there well, have

David Katz

you thank much. very Okay,

Operator

Chinchilla from go Please We'll with ahead. Bank. next Deutsche take question our Ricardo

Ricardo Chinchilla

of the expects are are and further use the you slides. provide question cash to thank you if housekeeping mentioned loan down Could or And to balance of a from color is see sale you pay your press is significant for $XXX the that you transaction. you as the cash? the questions. the portion for leverage plans pro for some you with In disclosed some my and please have proceeds regarding sheet, question the the question. doing term what debt that a the first us Hey on us Rhode second release, so company report EBITDA on repayment. Congratulations you on any that taking provide guys. please around Island? I you leaseback Could much million forma My

Robert Lavan

the X.X activities. to not times We're million. from is what's markets for We're looking perspective $XXX going was or EBITDA comment at company. capital the the on return a Island the always best Rhode And our leverage

Ricardo Chinchilla

Perfect. Thank you.

Operator

Lance Please our We'll with take Vitanza go question ahead. Cowen. from next

Unidentified Analyst

January Lance. February? Jonathan strength you and is, is for My consumer this first into insight Hi, can in the on any question share

Robeson Reeves

sure. Yes,

really the across Interactive, at board, we're seeing there in spend. We're all. any strain not So seeing solid

been pretty prudent projections here. Our have

to We're anything current no performance. So expect touch want if continue, signs revenue yet, upsides And you not of in I our retail? it. and on the George, do seeing trends there's to to anything see

George Papanier

Sure. to Well, support and I that is could add strong that issue jobs it's and business tight to fill that still is a our hard market, it's demand. labor

Unidentified Analyst

it. Got

that we you of some in mind, increase can that in see with the expect wages might the for year? So remainder

George Papanier

upward opportunity on are based going certainly it pressure hiring demand. the gives there's variable jobs Yes, so control on we're be jobs, But that that. that the continued to to us

Unidentified Analyst

dig to Got it growth we going little there's it. seems Asia? be maybe And from know that results, on into what's a some then that preliminary in the can bit I deeper going there.

maybe on update you could share So us some some -- the give region?

Robeson Reeves

solid. in performance Yes, Asia is

grow continue player We to the base.

seeing are strong, nothing really our There I about growth is improving see there, and very the makes well visits the really, Asia high. our the me improve. revenues to are positive continuing which margins in ARPUs are as Like trends. We can concerned as trajectory

Unidentified Analyst

the from last And one Okay. me.

use there's the slide Could presentation So it this awarded to lists license still of sales-leaseback? in in be appetite New out remaining York? maybe properties. just a have wondering, where Bally's more there's be there is the And financing, a a -- should potential

Robeson Reeves

It continue our to Yes. I to grow has as the will business. for be view EBITDA always just to deal. the land bank mean, we a tool right

Unidentified Analyst

Okay.

right table, are on It's immediate the it? for you that complacent not now. it's but plans no So guys

Robeson Reeves

mean, I Chicago with funding comfortable point. we're Yes. this at

M&A make unless and it's and So we wouldn't project way for or go a opportunity. tap another

Unidentified Analyst

you. thank Understood,

Operator

go Chad go Beynon ahead. Instructions] with to next Macquarie. Please [Operator We'll

Unidentified Analyst

for is questions. color of half type the Thanks back I'm you the in the and on about of the on demographics. curious consumer for what you're within taking your for us can Thanks this Chad. cohorts guidance your Aaron my all think help Hey, expecting a year?

Robeson Reeves

are above If where we guidance. with of hold today would the we our be consumer, trends we

weakness, we've preparing expecting So that. we been are and some for

now. So good we're right feeling

a pullback starting in quarter. We expecting second are the

Unidentified Analyst

Got quickly it. And want you. touch Thank I Temporary. followup, as on the to a

going any your macro, Thank terms outlook there change has given in on been you. there? Just what's with of

Robeson Reeves

is schedule. of there focus not has opening noticeable slide certainly We're on our really – mentionable the the been any Well, or Temporary. in

summer open no all part city to So more that we're there's approvals, and the has the is good required. XXXX. And the the looking approvals of process accelerated about

Unidentified Analyst

Got it. Thank you.

Operator

We to ahead. with will go JMP next Please go Jordan Bender Securities.

Jordan Bender

thanks. Great,

you As just the look maybe iGaming betting opportunities there? sports seeing interest side to talk have about can you to in South business, grow emerging both current geographies? the America, business the on expand outside your Games an opportunity you any There's if of and the

Robeson Reeves

would Thank are absolutely Yes. and effective market. will like, cut expansion the Brazilian into and much I through of I get the interest. Bally's brand as there. at in Jordan. market America. we We will Brazil be We looking it you, that find as think hard so, push very very the one South possible

will it a I pillar strong has huge be potential think and for us.

Jordan Bender

out Great, uplift thanks. are Las database for the Vegas and to people going and the any seeing cross-sell regional And to between then database being followup, Thanks. able Vegas? Vegas my in of and you

George Papanier

very our properties. in just Atlantic Well, but also do cross-marketing the well is Vegas cross-marketing and as Las portfolio, regional Lake we're consider some we we definitely visitation, as City, in in benefit the cross-marketing any And there nice opportunity yes, but opportunities. asset, effectively Tahoe we interested -- are get those Biloxi. customers we some had extent, get Certainly in to as -- markets our yes, acquired we've

Jordan Bender

Great. Robeson. George congrats and Thanks

Operator

questions at And the time. over this there back to speakers remarks. call the are further for I'll closing turn no

Robeson Reeves

for Well, thank from you all us. hearing

again us and hear You'll soon good from luck. very

Operator

Thank you. And you program. today's conclude participation. Thank does this for your

disconnect at any You may time.

Bally's (BALY) 23 Feb 232022 Q4 Earnings call transcript