BALY - Earnings call 3 2023 | Bally's Corporation

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Operator

Good day, and welcome to the Bally Corporation's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]I'd now like to turn the call over to Charlie Diao, Senior Vice President, Finance and Corporate Treasurer. Please go ahead, sir.

Charles Diao

Good morning, and thank you for joining us on today's call. our we made Bally's of presentation in Patel, statements. this would contain at Robeson the today remind the and that on Marcus are www.ballys.com.With comments like Reeves; management release Kim; and are website Soo our Investor Chairman earnings that Papanier; the Executive today call accompany available forward-looking of George me our our The Chief Board, Officer, the Relations Chief to Chairman President, Officer; Board.Before by will Financial Glover, Jaymin Vice we begin, everyone section plans, These forward-looking statements that estimates, include uncertainties. expectations, and significant involve risks projections and These risks and release earnings in are the company's SEC filings. discussed will results in from Financial results statements.In materially may non-GAAP these discussed differ financial measures. to refer certain call, addition, the management forward-looking during today's comparable Reconciliations release. earnings financial to in included measures contained schedules in most GAAP the the our are call to live the will our do for after expenses completion and a due call We provide replay hand over call.Let be not of costs.Today's the to also of forward-looking Robeson. measures website to me project shortly and non-recurring our financial Investors' is non-GAAP being inability available reconciliation this one-time on broadcast

Robeson Reeves

Thank hello, and everyone. you, Charlie,

to continue with pleased third are where market control a of our we We results to quarter tight present share grow costs.

well markets. perform in mature operations competitive and Our

Medinah states see project investments launch within ribbon-cutting International in X.X% the off these in our fruit.Our we Casino transformation significant City on solid U.K., a successful where continues will paying and Interactive and We the growth profit in have division several George we Kambi White believe core in OSB in app redevelopment segment for We bear America rolled September C&R build Kansas achieved the formal branded September adjusted consolidated ceremony and and Bally's new platforms. is our drive its iCasino Chicago North EBITDA our out Casinos and brand first Bally's of October year-end, goal and impressive by the launched on North market.In X.Concurrently, strengthening X, with and our both our operating completed Bally also growth U.K. & Temple successfully X beyond. in now to retail X also our Temporary XXXX as culminating increasing equity for rising property contribution reached I'll Bet also XXXX We performance rollout budget. momentum in X.X% investments a locations brand we profit we revenues the across segments to our in the Interactive, our of business soft on discuss in at at Bally in app. consolidated Bet and Notably, revenue by the year-over-year.We foundation X milestones, Bally's operating operating Hat app X fundamentals, it Resorts to our performance. states America.Turning turn least By that

George Papanier

inside project regulatory third Medinah that a Thank Well, budget, & Chicago, very at delay you, the a opening a sign-off. Casino we've due successfully Resorts, including X-month in we've of and productive quarter temporary to Temple Robeson. in had casino delivered

We the Bally's at over Bronx. operate Links Ferry in Point to also the took Golf the concession

full Casino Trop remained from which quarter Resorts includes the in & customer approximately X Chicago temp. a X.X% the Further we details EBITDA and reasons for the will information we resilient from flow profitably as in be our are golf regarding we that can the that disclosed weeks in increased site plans contribution today, competitive for limited the While operates the share disclose revenues quarter future.The and from year-over-year, course cash can base perspectives. the

most monthly gaming states.Our continue which Rhode Our in Black outperformed portfolio in can be seen in standouts, and were revenue Kansas strong. the and is we were while Quad take respective Cities our and markets, Hawk once to also Island well-positioned, City state's casinos and we share again market data,

monitoring shifts shift While at behavior in closely did spending, of behavior. we see are Atlantic instances, specific Bally's markets, major in seen Trop are in both outside We at very the customer a destination which Las haven't hyper-competitive. we the Vegas, City, X

the is perspective, quarter, finding scheduled Additionally, strategy measures performance vote has milestone as border.My highlighted the to for continue newer motivate and to profit our continue to yield Baseball's segment, our over a on customer HHR by and proven last take the across Evansville ways portfolio. be which continues A's From Trop, for across higher-tier preserve to proactive I be team margins mid-November. Kentucky our Major a next League will the impacted plans marketing results time.As efforts facilities to the solid to relocation

We increasing a development seeing to will the we until environment. any Temp, a of week-over-week in after XX is known. company.Turning Chicago opening outcome for day while announcement strategic only basis, about hold and unique are value-enhancing project are off volumes reinvestment we the per presents soft the opportunities operating that But it our on excited on plans hours the

a to we regulatory growing of plan per database. that In increase our implement operating start rapidly approval. hours expect to conjunction, visits core to marketing frequency XX We day pending will capitalize campaign soon, on

of from EBITDAR.Importantly, confident costs completed the the expect budget permanent generate annual received adjusted was of shared we September in announced our the the be when With permanent accounted or for we Chicago in approximately remain financial end total to for we X Temp IGB this when by operate project in to opening.Regarding XXXX, property, facility, week we XXXX. $XX the an last the ramping casino approval the the outlined million-plus year, years additional to for XXXX, have until the soft of our of expectations majority will continued

second the facility hard opening the the costs in of once are of an half construction will plans detailed XXXX, and July.With commence the we permanent in of tribute as for of note hard facility, financing the place.It's costs the plans for the for financing in calls site once demolition under our expect earmarked commitments represents We communicate Gap] billion, [Audio of finalized expenses. anticipated in host XXXX, important agreement the in construction permanent company finite to which premises property September which XXXX that are are preparation, $X.XX and a to community spending

Ferry As profitability our to now a core reached CapEx for ramping peaked employees, our near-term location.Now company, guests, Temp, to capital to and it the York result, requirements bulk completion, the a XXXX.Our operate are casino to in permanent and XXXX submit bring and projects our construction the Chicago expected and clarity we in Chicago with XXXX Point has our focused driving increased have to portfolio's limited, casino in cycle as growth XXXX, on communicating to preparing in back timeline expenses for turn casinos at our our are up the core New a project Robeson. I'll Trop of bid in our ramp concrete

Robeson Reeves

you, year-over-year International show revenues our Thank net strength, in impressive reported increased U.K., an to financial Bally's Interactive George. results. the XX.X% continues by particularly in where

to gain timely the share to market. continue We policy response incremental our U.K. market regulatory due adaptations in changes to in

focused per and expanding positive increasing and reducing formula strategy per cost remain positive on footprint to of momentum. results.In depositors our Interactive, first-time yield we while Our actives, continues user average iGaming revenue and maintained America acquisition North operating

in Our on launch of launch its database goal where a remain remains medium-term XXXX, and remain optimistic results our continued share track our we're market already Island X% business of build our iGaming to positive deck brand increase, share X%. iGaming achieve on of database. presence. in as all encouraging June introducing player an hands March a have XXXX. New state Jersey growth we Early in for returns, since continues to Ontario opportunity look significant iGaming generating market deep and in preparing to Pennsylvania and and is gradually Overall, Rhode our contribution.We are forward in we to in and in we

despite Temporary [ our Trop OSB ] adjusted range updated & iGaming.In that very later Rivers at pullback We investment is we press completed execution ramps the for A's potential operating year as year. the our of In full up.We're that Casinos business that with and in to the for momentum Interactive of path sustained Chicago guidance project we'll near-term a strengthening a to reflects bright. growth be CapEx heading and focused disciplined expected [ recent year also marketing well have the segments our continued benefit XXXX EBITDA to This due release, Twin terms in opening to facility saw of Bally XXXX are of considering of we the X prudent remainder Bet full our International are into ] the at approaches operating and headwinds the XXXX our projects an from and Resorts, that belief our City. investments, future will financial foreign you Kansas positioned on is the growing dollar.Our Bally's exchange U.S. realize given outlook, OSB committed

revenue Next, from we feedback ban leverage has begun recently pointed and to our momentum positive, are patrons to initiatives. as Consumer regulatory our of in Recall, starting from and was are first the back. fell Shreveport. benefit significantly now the database.Further, to we year we as build have George we build smoking received that out, when Chicago our in implemented build should continue ban reversal expand beginning marketing we been smoking a and approvals gradually to full to

in driven line U.K. and by solid realize and the to of in operations.In OSB and GGR and the million in in on $XXX underlying in top of months Rhode iGaming implemented jurisdictions.In the to alongside We Interactive, with [Technical expect Bet to XX Ontario. OSB U.K. marketing the app New financial and basis to robust Asia, Ontario, several after are efficacy is these launch Interactive's annualizing increased stabilization offering market in across more iGaming America share launch International for months Pennsylvania Jersey operations New we recent we're investment Jersey, Bally continue at gearing working diligently iCasino look PA Difficulty]. volatility in North and changes up currency multiple rollout We've market Island tighten of launches from continued to a the constant of Bally's trends remain XXXX.In

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experience Although costs as customer [ processes the 'XX, support reduction of America in seamless as Interactive X certain across of the Bally this continue our also we costs, This in Hat the operations White towards a White will APAM and be North have step as to drive scale operating goal are is better we both scaling our given ] complexity Bet our deal a teams financially X North grow it to to of shifting to when anticipated Half North customer a iGaming agreement, our organization expected won't OSB experience for additional America and ensure share with profitable to consideration America business. we some are separate point, initiated platforms.Given and iGaming with creating have business.To an operational expect managing improve of nature a successful we will and major tech our focus we revenue towards North the which is America Hat success-based important of date.

chain consolidation improved announced best pipeline practices million $XX and expect shared year deeper supply lose year, I'd procurement development on growth cost services, will updates realize manage We're and aside, structure and $XX efficiencies.Earnings dig to next XXXX.Turning break our our centralizing operating in corporate. implementing million EBITDA We and to level into functions at working provide like projects. and strategic our on even and the this to support to

we indicated, the Vegas our terms in value to and development Oakland highly previously highly transaction XX-year vote in relocation a plans company Tropicana with for Remember bought opportunities excited The as is strategic Las A's has Trop us. anticipating that presents we by lease. MLB's compelling spoke $XXX our and to, million scheduled site. are the November. created As this for this our for just for cash next we're George of are steps

and limited the half the September to to XXXX the Chicago Now second we expect an which are billion, this with asset.Regarding 'XX site costs. $X.X reiterate opening. I has A's million pain, as with into progress is our have make of public in preparation, extremely want including that to have of anticipated the our demo obligations also finite facility, permanent mentioned, XXXX although also construction to continuing short-term the land, are valuable primarily plans this commence investing we George we which funds process an in $XXX some have

means which We a host for agreement have billion we on facility, our to meet permanent community total ] [ $X.XX spend costs. will the project of

We of have remaining, $X.X to bulk which XXXX expected billion ramp the is and in XXXX.

the stabilized formal also we be in North will core Golf a in for be U.K. with a we and our We're we a and Point to tight through as encompass we're building states in rollout betting to U.K. that Casino, number.We community Remember, America potential Interactive. under New many in & the XXXX extremely Interactive Island, Rhode digital full-service Bally common where to growth process, OSB plans Bally's market international International mid-XXs, the us.Regarding patrons.In back online XXXX. York, rollout, database across market deep retail premier pursue exceed is confident momentum our XXXX.Following and marketplace.In as rollout technology iGaming U.K. having revenues a heading Bet behind segment fit the our anticipating Interactive share important in the additional Bally's launching to scaled in we in return the details for opportunities scope upon our sectors, profitably, turn transformative adjusted remains multifaceted have a growing betting a market core and we as of remain Bally's Bally America initiatives, selective it at we markets leverage costs reinvest holds or along specifically, which iGaming our rolling brand the the vision communicating Resorts, Bally's prepare EBITDA and one company sustain and for to will states, share growth businesses. converged robust, request Casinos Asia are Bet regarding committed Bally's to and of only gain be to in us, Interactive our to businesses our Bet This We with in will plans but our margins bid spending Ferry includes the Links launch eagerly incremental our becoming everyone ongoing. of This Temporary levels. increasing addition to iGaming, criteria.Looking that applications we and the globally, York cross-sell summary, in continue which is allowing New Chicago goals that presence to remain excited are sports support local OSB sports with wants supports our ability North as including about the low platform the out these to in the International in multiple segments. growing Casinos our team into and hope us online of to our Resorts of underscore our to across & leverage and continued between for a International Bally development brand

to year, As how with am Marcus, and projects is and again. cycle over near-term would reached discussed have like doing to me. CapEx for earlier handing has expansion this to all the peaked our core you reiterate I what I completion.Before Marcus, team pleased thank portfolio's you,

Marcus Glover

Thanks, Robeson.

our a As strong our closing Robeson growth as out executed focus evolve initiatives. we our pointed remains XXXX, and grow company saw out, immediate which

equally our are our place business as growth performance committed development managing financial continued operating to and are across operational of foster to pipeline. We all we XXXX, streamlining in excited remain elements X and into our enhancing Moving segments. the foundational while

which our is we're X% for million. rent is our adjusted of many EBITDAR an outlook about $XXX and after million, promising, of Although $XXX opportunities $XX generated increase excited X% of lie an company of approximately we ahead.For year-on-year, which year-on-year, is the million, young, is third accounting that and quarter, increase expense the

year-over-year we to [Technical George votes A's countered until opening and City, Resorts a helped Baseball Black Atlantic For adjusted offset Chicago segments solid Quad the continue decision Rhode earlier after mentioned top-line XX% Casino before, Tropicana Evansville, during and the results Kansas margin Interactives, operational Tropicana.As XX% Hawk, commentary, Cities, his in made at Difficulty] on not implement portfolio characterized EBITDAR Island, demonstrated Casino and respectively.Our several-week plans.As communicated City, growth cash-generating relocation in Resorts which of our International by changes organic the was & and experienced & our delay. League Major

a Casino XX were the million $XXX database, of revenue working begun recently and $XXX from Temp. days building revenues are full at Resorts Admissions million, quarter Tropicana admissions.Overall, marketing having a increase, EBITDAR, launch on the X diligently soft the the which XXX,XXX weeks over to first We year-over-year nicely. impressive ramp, including very reported X% is & of adjusted contribution from and of Chicago the our

Excluding Atlantic XX% at EBITDA, City, EBITDA million Tropicana, an and margins which year-on-year, and of were margin.Earnings X% year-on-year, increase $XX optimization increase XX% a and in the ] Chicago of Temp, were adjusted marketing again continuation. [ [indiscernible] solid once is

this adjusted states of million potential launch results Bally extending in We discussed, Pennsylvania we to business. margin revenues in for prudently. gained upcoming $XX rolled brand Bet out Interactive be long-term the target Bet, and [ New we as well XX%. has are sole step we past performed Bally's segment's quarter, of in took brand iGaming see app million the incremental OSB for X for retail of and investment remains committed early the will $XX our In to generated The Bally's North the first and the the ]. excitement reach of of ahead, business successfully where U.K.Our the Bally's in share responsible negative previously are launch, we building and Rhode market Looking and Bally's our launched We we new our adjusted provider.Turning International locations. launched growth we Interactive the the increased America in and we continuing capabilities. ] EBITDA in a north X iGaming, since sports Island, our have Jersey. our [ EBITDA June

fourth as through customers. measured way remains additional will OSB to iGaming we mentioned remain be and for full we schedule effectively. the quarter, laser-focused opportunities, reach in heading and in be rollout future will Casino domestic & XXXX.As our look as Robeson growth funnel managing The an the U.K. core Our Resorts at on live a marketing as cost with earlier, U.S. efforts OSB

will PAM Bally variable a internal onto including well the for grow customers, efficiencies.Corporate quarter we a business and just now White to under as our platform We cost fully the at This user model, the operating experience better lead third for more to U.S. prudently, transition $XX as Bet. will create million. consolidating in for our and expenses Hat as came iGaming

remain are our we and quarter, last [ centralizing focused advantageous. continuing and mentioned to ] we segments were operating our efforts managing resources support our controllables As integration on

our We confident core an operating guidance. are profitability moving management consumer the actions close a eye maintain quarter spending we will expense overall, margin forward.Turning exposure minimize swiftly profile.With in tweaking strong in demonstrate conditions company On our on indicators Should customers. act headwinds, Casino Resorts our to & said, we keeping engage our for that our to impacts measures are to general patterns economic we and and for fourth are basis, outlook. and

City change full-year our in XXXX within ramp and FX Chicago ] exposure.While the [ saw As dollar confidence adjusted reinvest billion $XXX contemplate projects the to revenue, guidance considers Resorts. in the database don't the at strengthening the you at our impact take our not our million. forecast our heading growth to Tropicana, delayed to into of our release, benefits and revenue changes XXXX to full-year of our range facility of Casino the begins remains press facility, in Twin Kansas EBITDAR and These Chicago Temp $X.X decision our with $XXX River in million is is our & $X.X completed This guidance of Temp the high. U.S. updated billion the opening we lightly, of in this

of We smoking will Shreveport. from reversal ban a [ benefit in ] also full-year

million, XX.X the our At look maintaining is are remain the million, shares. expect an XXXX to million strong are on other capital cycle. of XX.X ] were Chicago to we America we be at in particularly expected half.We Interactive Bally's XX.X incremental loss operating shares share options approximately Additionally, structure. way excluding reduced right taking expansion U.K. basis, guidance shares as our we end, approximately and expenditure we our dilution North warrants complete CapEx have [ where to of International in is Interactive the million aggregate, $XXX outstanding by and outstanding quarter capital and our

exciting of We and have our reiterate of is netdebt.I to along the such million cash more part $X.X on journey. than team an be XXXX my sheet and important billion our balance Bally's beyond. $XXX for enthusiasm at of point It quite

and million million, We development the domestic will roughly expansion are by in all continue by costs Las the created run about $XXX project, business, of growth our and is aligned of projects our expected particularly launch of X Vegas Jersey, anchored generating Island, segments driven Interactive in of value the New expense York Exclusive the RFA, and $XXX a EBITDAR, on Rhode in growth. a in in Bally's in Pennsylvania and enhanced accounting a million CapEx to management we $XXX rate estate we for robust million open of strength over between in and compelling Chicago value iGaming to you. International core for exploration grow focus on Resort the we business.The in about balance operating strategic pipeline year. New $XXX $XXX listening, to on it our to our projects, of continue of will approximately million with Operator, the real Casino to of now million, pre-tax continued addressing sheet Q&A. we focus gain and all our highly and untapped cash up U.K. us back you I'll our direction of pass the all our $XXX & of where with rent flow shares, of the portfolio.Thank range ahead our interest and development

Operator

comes Jonas, from question Truist first Securities. Barry [Operator Instructions] Our

Barry Jonas

through next year? expect and path you this the ramp or Can in us for Chicago of walk rest you maybe the year

Charles Diao

that off start I'll let question. with George

George Papanier

then early, first delivered construction So the Chicago Barry, We we regulatory of opened of it waited we that. approval, with inside and Temp budget. me just start let the and for

operating XX anticipate XX We hours and end. to that a we Hopefully by approval in year effectively to we're IGB per soft only opening hours. see environment go day. So

ramping. is they've showing XX,XXX X business Our to ] X because IGB And customers been approval this at from growth, under well. marketed going is point [ week-over-week marketing and We're requires not months. our as database to in

a plan first week to November. the and robust to submitted we IGB pretty marketing in So received for have the approval launch

reflect GDR this results business to [ annual first the games second I'm business feeling property, to X growing results rate already table how $XX I with without for marketing ] EBITDAR. months that's the good reacted plus achieving associated that's already. We and of the state strong win, of early So operations, to the ramp pretty rank early and in expect in about and total positive rapidly, run continue and any in based on customers an million it.So about

Barry Jonas

you to you about XXXX. $XX was reasonable do communicated talked outcome? that million think last a still $XX possible? for -- I previously And think Is I that million that Is mean, still quarter.

George Papanier

] annual we Yes, of $XX [ an be plus. million on first should quarter, after rate the

Operator

next Our Chad comes Beynon, from question Macquarie.

Chad Beynon

but I kind low $X.X understand a I revenue perspective. guidance. the from versus added wanted perspective, Trop, you've $XXX ask QX terms to about imply 'XX. end of the that kept positive a Temp, negative of have is bringing million, year-over-year of the down by it you a you kind the FX some the billion, from in growth bracket for actually year, added Since then, year-over-year would you've the projects, same

pretty but low of would kind might terms simple late actually just down, of come and opening, revenues where the little quarter be Temp was I a end, in bracket that conservative? scenario went a can you very or the understand help of sounds in that of it us like well. kind was just that at a think So bit --

Marcus Glover

where I'll Chad, obviously Yes, some currency, couple of of the things but way terms then to One exposure have makes experiencing A some our sense. of play. also opine our about you are colleagues competitive market allow pressures on things, to going some of my appropriate. are of where and a it the FX that as if we we respective there markets, through couple into come think is we're in we're

some But And noise a also it implication. with Oakland some what's full where ] of of we may so got on and property going year we A's has that bit take until [ last do had what account Oakland the so confident the little Tropicana, to a into quarter bit A's implications for of that with with around out we or on high and announcement. be that pretty pressure there, lower of little could of There the that the of the range. a end and minimize opportunity the the some lack feel end more that there's it middle you investment we toward but impact find make to

And that we our items still have feel pretty at confident some minimize we so disposal to impact.

Chad Beynon

there working or availability the of of cash, market, buy CapEx the cage like in to will flow things? 'XX. kind next of in earmarked 'XX, capital, dislocation some of permanent is capital a just here free the forecast of terms sounds cash given then the hand allocation, Chicago standard kind stock in good And be it the some of Is for on for year on core back and lot and near-term the business, kind cash

George Papanier

price. I'll always always we're assessing look, and that that best way best the our that attractive equity we're it's -- Chad, answer we is, very right our where free cash. have, is use a cash the pricing We market of now, understand

Operator

comes question Fargo. Politzer, Dan Our next Wells from

Daniel Politzer

half it access you additional ramp, might think capital? frame And the kind TBD, could $X.X some inbounds be had help we one remaining financing way guys if comments sounds of laid So maybe that you any about XXXX possible CapEx that out is to of us some as or most just I on kind just on of of the the obviously and where but of XXXX get there's avenues of spend. bulk think potential is -- and billion that like we Chicago, about areas second think

short So any so as that chunky kind not frame? opening, you of way there that relatively about be have or terms a is time think in of do the to phased opening

Marcus Glover

team. Charlie I'm to answer Yes, our let on going to that

Charles Diao

financing. million of land, announced $XXX we are a on yet will to which $XXX expect path and [ the be have you -- purchase financing, million we with a make to to amount rest facility that's was and have not we $X.X the but significant we're to focused Luau our ], know, When Luau our lease, $XXX what of have relative to land we this the construction the million and construction million you draw. Obviously, the can of there's there'll As ] from for construction [ shall, substantial be portion assured $XXX billion available of announce, something on. some -- be

So is the so [ construction construction would ] only for for and Luau lender. the land, security progress for be the facility

Daniel Politzer

just pivoting, is probably regional the terms in George. of a And -- for question this portfolio

other structure your to insurance, competitive that not relates margins, et marketing, possible peers some marketing think pressures it utilities, OpEx labor, I just at about, but of properties, some spend cetera? it's to in relates whether the out just as guys of broadly, some think your given called uptake do maybe out, your of have pressures. the you it As called How you

George Papanier

to costs. with Well, me that We you tell just our costs first, let variable we're focus demand. careful meet fixed on very

and AC at ] when was portfolio, So acquired it [ comparing remember total in when we're XX% over without last and total Trop -- you the look our Chicago mid-QX. year Trop, that's the

is for on we opportunities, the really or based revenue any to staff the it is -- variable measure in So on generation are that which and positions additions investment. way targeted return

to margins. So able been we operate, to and we've sustain how know

in fact, margins QX As improved matter of we've without basis from Trop. Chicago a and points XX

more little pretty perspective, costs, rational to for spending become So aggressive. marketing on other than some we But bit still return. they're in ] a focus we're really starting seeing the although being markets labor market a [ from

Operator

JMP Our Bender, Securities. Jordan comes next question from

Jordan Bender

to overall Trop, to sticking you back? more or of calling regional want deck properties, is I sector that was there softness. within that see these were the pull wondering, is some I City, that kind of is specific anything the based out, slide you're the some startingto sector There calling Atlantic It of of your here stick regional commentary. is with out in phrase seems like some there, kind portfolio. off the consumer in just

George Papanier

Yes. we're in the you is overall the I seeing certainly mean, look I sector-by-sector. at market, all listen, it softness markets. mean, when

in customer a focus more market segments a up we're of bit business of getting our segments return share tend some of shift. bit perspective. a a of we XX we're on our XX operate the in But However, better type those a we're on little base. where seeing minus to seeing We that lower And that. markets from little XX higher the we're to in customer certainly softness customer

Jordan Bender

right iGaming 'XX? follow you have just your be spend, think a positive gave stick losses guidance should And you Is presume state customer. for to kind I some within just EBITDAR up, about of just database, Rhode then the my in 'XX. Island, that you way being in of your higher that the guys within contribution that your

Marcus Glover

Rhode Island will be a positive iGaming margin generator.

to X. loss. thing will That North one is, about this the our way the million guidance, look of Interactive range, talk we Just on go America although it guidance our I at has $XX

We will that make X. goes sure to

it at for us. good will that swing So $XX that. excited Island, opportunity. yes, It be profit very with in a contributor Rhode But by we're I million look a

Operator

question comes next from Our Navarrete, Cowen. Jonnathan TD

Jonnathan Navarrete

decrease, puts how temporary despite if Casino first about of walk third to ] the to they as led with could as year-over-year, can well last XXX And long us are [ quarter X is just those record My them through that the bps expect in to takes we and nature, question segments for? decreased Margins you revenue. respect Resorts & quarter. the in

George Papanier

how a referring the just take that the -- levels I out we're out Atlantic guided spoke at consolidated And ago you you're I take margin. always spoke and City. market -- So as Chicago and we've about briefly just the to to. as Trop well minute just you a recently,

to going with to see we're theannouncement So the of have what happens the A's. with Trop

marketing happens We're the incentive bit that's a So that's be what in And There's in not to going there that about. there. market. And but that of as little customer are far City spend. a concerned, uptick is continued it pressures to markets to seen react from Atlantic cause us that, talked does a as I chase perspective. little one

Jonnathan Navarrete

[ doing market In us that of the from you is your And markets. are taking examples that company those what that Bally's a give some in is certain peers slides, maybe in uptick share driving markets can you called ]? out

George Papanier

that previous a our of Well, to calls we're the discussed in is advantage marketing database, not going at But I I'm taking of give and end seeing secrets. opportunity away we're this higher better any customer that.

Operator

Our next Stifel. question comes Jeff Stanchel, from

Jeffrey Stantial

in hearing Today, million end. true true here, from in of of high FX. sounds If changes $XX opening X of the full-year to incremental of question starting I if so, million lower [ first timing much the the I'm could was you only Chicago at updated am if the only bucket ] out I EBITDAR each revisions, your Tropicana are sort here is, hoping revisions? you and correctly, are A's time contributing ramp, like at sort -- them and at And really for the just the it how $XX are correct changes last incremental ] you the saying on real end, the off, the the guidance? off My terms [ guidance low these changes wondering guidance so ahead the

Marcus Glover

Yes.

in on year-on-year, dead more made about very, of get difficult investment in are assessment. clarity just very any do, for to those we, with Until decision. where we to the Chicago, again, The we one to build put upon that but the to perspective good into what just very get keep more change impact. A's things that. the your minimize won't going to feel on operational it's bucketing, Trop, you, continuing You're it's I

what you're issue things earnings. of assessment and revenue the those difference you're so, last primary of the our your therefore, on But guidance contributing dead currently shortfall. our in we today And with some between to seeing

Jeffrey Stantial

be the X project let's longer-term all this, the spend. regulatory my through you making say and path your guess Tropicana question right? York, the no York a it is way of for Maybe of processes, through doing to basically hands. you out. decision a taking be, there's a the spend I MLB ]? a recognize construction the it to Or amongst variables going overlap know that I development the sort up of you here, X sort but spend subject overlapped whether sense [ walked phasing some with outside here, But of New longer-term New end and much sort with various Chicago, view of could sort of guess, do we should I projects? lot I then expected the wise me of projects makes expect or that How of some timing of are projects any the between laid scenario let ] question there's and -- license. where Tropicana, sorry, if think [ And multiple there

Soohyung Kim

one. billion, which spent terms $X.XX that what in our spend, a asked to I almost we're of actually Look, that have think Marcus actually Chicago. have maybe financial we large, hit -- -- that is make nice take to them. and -- priority we to So exciting missing in projects, highest million. of we've people's this is is X all number might me we is the sure be of our thing analysis already we're balance $XXX Obviously, But need going which to

through the I of we -- bank. that minute the bit various -- our so, hit have ways number finance There's think Charlie walked is And obviously, little that. land a and to

the And some main find in hit like tell to X,XXX-game there's multiple to me at levers on you, subject almost to the on the We substantive the for sure think financing that going will of opens host to us allowed position the be we -- time community a day, There's we're I still, generalized we minute city, The continue SX opposite. number, agreement going point unlimited we're we that investors. we're let belief to minority facility inflation. have the so It's to and end the actually and therefore, bring make But there. facility. that, the that's our fulfill with open budget. the in

to point good Trop the has as alluded, interesting sense that the know that's it's it.The main we near-term news, bad redevelop. a again, rent, because -- completely to it in operating they -- we're to the lost -- purchased some sort to I starting new manage, there decently had redevelop was then and don't Marcus as the is EBITDAR we opening declined we caused harder where it's we So to employees bookings we the has first that actually at be as people so, the think a an when and also, in has area, news are properties when close, it know don't been when frank, at now -- of it, and as leave site, the carry-positive EBITDAR our will actually of and positive, the we've very that know going asset.As in the going was -- frankly, are because as are situation --

has just here, the think go. to, the look, very here the going that we're have it's and obviously, we is our a caused Marcus reasonable asset financing financials, to near-term, actually, value we we again, So partnership how what as in up to believe we has picture amount.So based have a gone spoken to hit on but decide

so and think in say Las there look is of and force-rank New we essentially them. even is then we shares just we We're we're capital will [ our well we lower, York, that, return or ] out allocate that are well offload if make aware obviously, properties ] we find we'll prioritize the and think Vegas, run partners not think going would so, capital trade. most sure we obviously, are what what Chicago, -- we look, we And that correctly everything.And of where on aware to to spend that spending of to and the capital then will force-rank attractive, like it projects [ capital, it's on like

going would change, out, we the get just pretty it's is that's rational in the have are if company but, way, we prize were guess to be able as it's the shape, you we every and that for.So make right form has the electives have find can that's Board happen RFP local a I again, that obviously, exciting, that how and, George that's assumption an win support. developed. currently but some make the partnership much continuing, a will our only think site to Things York, Again, out, little that to that decision. capital.On pointed that could in ] further be this [ prize, gaming and we is about the something most the shareholders probably of obviously, company look, because, pretty a I competing to to question of believe kind be speculative or but we prudent New to would I think So financing the you allocate

Operator

comes Brandt Montour, next Our question Barclays. from

Brandt Montour

Is Just which Trop that Vegas, where more Las much lease buy projects, you the that, pending decision. that buy today world A's other curious at you back back the how to you that cost-benefit? arguably hold with lease equity? a in create look the fund would to In is the there debt, is you balance valuable currently, lease how sell or liquidity

Marcus Glover

unload about I lease if Yes, it's for of into think and the guess our way couple and is that a value is transaction, into answer of now. properties anything. that got a think attractive right enormous very that we'd the for you probably with us to traded traded is I nature right that a the deal But we price, best that

minimum valued so, an at at a we entertain that we'd And that. or whether an presents acre, develop $X absolutely us ourselves that whether someone offer million

at plans entertain moment, We approached of us, this it. we'd divesting absolutely someone but no have if

Brandt Montour

I of is been question the sort of I sort guess been and strategy think And hope for there shift? you up a and there quarter-on-quarter X another I mean, had the guys of mid-XXs, of going a -- cutting sort had not, think And quarters. the ramping International sort but maybe there's prepared marketing correctly, in low maybe and margin locale. story mentioned this Interactive, in remarks, is then, margins, to subtle of on is, last the target I Asia I up investments I or reinvesting caught a

and -- you guys so And think quarter. XX% this I did

you there going and what offense [ there you respond ] -- on how you that? to So, is would yes, back -- would are

Robeson Reeves

Yes.

up. where We ROI will stacks spend the

got We showing and have control you, real real enough we've businesses. we've these -- been on as grip

we them pull think as better Hat with there, such that come, for we very, are got structures.Just We and North growth. in your that Yes, we'll you've want cost want we'll we make stronger ]. also growth, as get spend make but that we result us. for a but Pennsylvania. also I'm get we'll to such platform right long America, gained extract confidence Jersey, New hold [ announced to revenues but company, I we've and our very have term we're for continue approximately opportunities and will White showing really reduction. the Interactive the right headcount share. the with mature So the will markets, we That there at in in grip a right mid-XXs, providing share, if should improve there's sure grow offering EBITDA We leathers too. very I to a positive where International us to mature happy where grow back. can to EBITDAR is. out these world where showing the Kambi and believe the the I'm be That a we're reduction add our we on remember that we are headcount margins with because highly in which competitive, markets will a us many product XXX-person

Unknown Analyst

groups, Is please this restricted money payment identified, plenty do have to you And the source if estimate, to raise in that perhaps a REIT like the enough doing that the for amount confirm the financing although the has that, additional project for a of provide hard to identified, color unrestricted on the alternatives I has being sending million? funding color send $XXX point company partner, you a by restricted XXXX, including looking excess capacity have transaction could restricted investment what's in company of to the the rough the the money, sub? at Chicago that capacity company was decides and for the also the wondering funding preferred some timing that you and group, some if money transaction? at capacity total ] lease of at the if regarding perhaps [ needed, the could avenues like say that you cost do

Charles Diao

you XX covenants our asked questions know actually our think what But I about are a what the we that distribute obligations cash. unlimited are, level, we yes, to we that list. contractual room we leveraged certain know to -- have is degree fundamentally are, and in below

certain levered, limitations. we obviously there However, get more if are

existing capital the plan, told that from of million $XXX unused we you have the terms we committed In facility.

are of prep. construction is to think pretty this would that financing, That just terms we REITs terms in terms valuable seen take question then different is -- sector. in in own of provide you've with of also many that forms of in limited us we We demolition very ground. forth.The XXXX that and and was in site of is where And and your construction XXXX world. in of XXXX -- REIT terms do phasing, partners them certain our Chicago construction ultimately, financing. ratios above And the so Because explained an asset everybody can you the aspire

monetize financing.In to billion So in bank have $X.X probably that. when choose do land $X.X sources existing I billion the of addition, our where we of in think different got on of value, terms estate a to hints depending within we you've

then until XXXX. probably minority before, more addition, money first have the -- But is mentioned don't second a we -- like have And in lot we we sometimes we in This first raise need Soo quarter the of have quarter. that equity So really as XXXX. or levers. -- a also

you that of be patient. fall a just pieces there lot have to So into will are place. Unfortunately,

Unknown Analyst

covenant I leverage please go if the restricted may and for quarter the the you And with group provide follow-up, LTM the can EBITDA period? a for adjusted

Charles Diao

No, said think the we in but we are I -- we force.

Operator

now at the to additional to questions further call for over time. turn would this any speakers no like or remarks. closing back have I We the

Robeson Reeves

we'll soon, you you, pushing with you. forward. up all our apprised the We'll keep questions movements happy Thank and speak to today. we'll significant future. coming for your of everyone, Okay. very Thank you and on performance, again keep in any I'm

Operator

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

any at disconnect time. may You

Bally's (BALY) 1 Nov 232023 Q3 Earnings call transcript