BALY - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the Bally's Corporation Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to turn the call over to Charlie Diao, Senior Vice President and Treasurer for Bally's. Please go ahead, sir.

Charles Diao

Good afternoon, and thank you for joining us on today's call. presentation Relations this at section and at are www.ballys.com. release Investor the of earnings that call accompany available The our website our With Officer, our our are Financial President, Reeves; Chief Glover. me and George Marcus Chief Officer, Papanier; today Robeson Executive

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

the In expenses financial do measures refer reconciliation to the schedules to our non-GAAP addition, earnings Reconciliations not will project inability of nonrecurring financial to forward-looking costs. management most measures. today's onetime during certain comparable provide non-GAAP in measures a contained due release. call, in We our financial GAAP and to included are

live call. completion With be is shareholder call this being we our turn the process after also formal I'll will is Reeves, consider be November As a meeting that, Casino on website special proxy for questions CEO. after investors that taking of Robeson respect and available broadcast our shortly This replay not reminder, call. for on the merger, this to call outstanding Queen to XX the scheduled to comments shareholders' the will the the given with

Robeson Reeves

prospects results X we long-term provide segments. our you, of Bally's Thank updates to pleased quarter the you business initiatives today Charlie. We're and our and growth discuss us have XXXX third join as on

& our America decrease a while X% from in segment grew year-over-year Third North to quarter X% saw less revenues $XXX Resorts segment the million revenue XX%. revenue, as Interactive declined Casinos than

the very margins the non-U.K. Interactive due approximately it full segment Adjusted perform EBITDA XXX basis X% as Our a saw start of by financial in call Today, our sharing discuss review increase The for key businesses. interactive I'll segment updates will over and detailed then operations. quarterly to Marcus, our the decline to who strongly C&R by generated our on I'll development more a International revenues. George, points our provide year-over-year. XX% will business to performance. latest a continues U.K. for pipeline business, followed who Interactive our revenue hand improved

strong our local you know, partners to with significant downtown at Bally's a and which quarter, our and casino positioning a in Properties the announced market Leisure of of we our appeal. destination As flagship during Chicago, Gaming blend funds the agreement permanent from benefit construction

the work activity Our start of banks at River is development and site on construction a of proceeds site demolition as prep anticipation in of of pace the year. rapid Chicago the next today hive

permanent our position exciting to historical Bally's chapter begin in the planning beginning for formal own of will eye a an elaborate fully of legacy with in Las revised facility remind adhere our are regarding We plan on Casino with growing but believe flag development of concurrently city running site. will event to our are once the further new and efforts. foundation community marked memorable October, a the an Vegas we current the active Chicago its planting in line. with approval single-phase the Significant are efforts success to time the discussions moment, stadium player master we will us the Las Bally's and the I and in want our database, for to on In the towards to Tropicana George construction existing building Temporary process the performance investors development which underway, A the a focused efforts hosted for opens. the of that property this Vegas construction early in put celebrate this allow

the Given casino, playing the ready current hotel go and and retail our once in in to our offerings their of to pursuit is portions initial begin A planning have XXXX. stadium preparation, new

new awarding York. downstate licenses casino Turning to the remains New process prolonged. The around

the June licenses XXXX late will Our is awarding be 'XX. accepting current early bids state in understanding in the and

X% Our proposal world-class be it engine International to at America Links strong a X% million, our $XX Having resort $XXX a Interactive I'll the and reached York Interactive in turn adjacent International to increase. for state. develop adjusted representing economic Bally's City attention very to New contender developments, Bronx covered North to segments. my revenue EBITDA million, be growth Bronx, C&R as now but Ferry is Interactive positioned declined year-over-year the to and integrated will Point a level an segment

share per including business a remains high of average continued user The ongoing online by gains, strong, joins our build-out product U.K. also operation. that customer Bally's the revenue Further, healthy and benefited sports driven a betting betting all-time offering. cost-effective active metrics. levels sports robust acquisition offerings, robust market our launched online customer from newly and driving recently launched Jackpotjoy traction we branded are for Our

Newcastle a acquired time. we small Aspers casino in U.K., quarter, Casino in the the upon land-based During Newcastle

broadening yield healthy into licensing continue ex leverage U.K., is While world reducing colleagues following as year-over-year of growth maximizing serve business rest we the we our monetize to the to it drive we to appeal. team our where at broader successful online markets the revenue as of double-digit currency we allows and high-margin continued returned marketing. constant the welcome up an in Last week, and our and announced our year-over-year a revenue operating saw with allowing unit a profit convert allow the from reinstatement the country. separation this to offer nimbleness. a work of license strategy of to In modest business, strictly the see momentum certain the our overall was independently more this further brand pre-regulated reversal instead This with Outside we to while markets other attractive streams. the to X% This operate to separation unprofitable agility Spain, an within entirely our a land-based license in acquisition and U.K. be engagement player Bally's plant casino, opportunity relatively and model. database the Bally's to will growth. royalty Bally's believe Asia We to October, in decree in of more advertising

importantly, Spain More licensed as presence our to in U.K., in this our allows North strategically interactive focus the growing activities Bally's markets America. such and

an We America adjusted North to of million million. Interactive. loss Turning EBITDA $XX with revenue $XX of strong generated

Rhode moderated while indemnity by remained obligations. Profitability steady. Island Our contributing level impressively, continued up gross $X.X in the to market Rhode other was iGaming iGaming operations our revenue, markets in ramp gaming Island million at

'XX online Bet XX additional now in launch additional our Bally to sports rollout, the live betting in by an Regarding 'XX. in expected end plans of is markets states expansions with X with

progress coming growth as EBITDA. Hat launch we the migration is is the New future, This United capitalize and White to for Interactive the our the positive make Casino to team occur in States. day. productive towards to achieve George? will business continue substantial Bally's will highly Jersey and to on in its MONOPOLY and November, to progress on sports brand continue America this Overall, business The period North the also the quarters. excited the to our The in marking long-term entire opportunities. of platform we positioning an introduction we look forward sharing position to active for

George Papanier

Robeson. Thanks,

player have quarter, Atlantic in revenues at revenue stability by relationships. largely facility general Our monthly XXX,XXX a in our level offset now cadence and than temporary and our continue as stable and Rhode decline C&R exceeds X% admissions developing our Quarterly to slightly ongoing grew ramp more focus customers. segment and share by on In Chicago, risen market its portfolio, saw expanding the our settled highest operations driven player we customer has date, headwinds while across database Island City. key to to database into

anniversary. X-year the than welcomed celebrated quarter, year, through million our first we we X.X more During doors. And during the our people property's

gaming construction funding the Bally's demolition site in emphasized casino permanent properties XXXX. commitment each running us year. facility, downtown prepared hit the customers, has Chicago next early spent leisure our $XXX the to prep September I've and to opens and the before, of when team million in As With puts a ground better new from begin respect to progress with flagship quickly day new and to allowed the becomes position our understanding

and traffic, continue and In property. for particularly on plan disruption X the and Public to Island, schedule to new is with key XXX We the with a roughly to for revenue we is table work cafes, and restaurants, likely a on remain X,XXX-seat and the architectural Riverside Interstate Rhode future. by the theater, Lincoln impacting Park are city remains September on site bridge drawings secure X,XXX XXX-plus the approvals disrupting X-acre foreseeable hotel food games, Lincoln to destination tower, our a property for resort level margins, a XXX-room XXXX. court slots headwind believe our continue this bridge open

We Atlantic its period. following a a high to earlier evaluating months in City Island of quarter balance experienced relationship points during in-person key this team maximize to are this year. summer typically marketing closely play Rhode best how the our with with iGaming the players challenging during touch visitation departure

amenities Bally's the building an in steakhouse More at our available to relationships we which reconstituted to opened property. members into We coming momentum enhances start summer. and new have City, months next Atlantic team new benefits the our and with experience believe since at deliver the recently, team exceptional

Looking will the making investments we efforts portfolio, properties our behind delivering as we both We at rightsize quarterly our serve alongside believe of a standouts solid performances. Biloxi and operations in our into tailwind the were as properties balance our to enter Dover XXXX. scenes the are

want has We highly future spend. peers team in the across excited closes it, year. entire and At shareholders. transaction consumer with the landscape. our bit Marcus, on players the time, be database mid- proposed and is in the that I our respect to let portfolio others with excited same the of next discretionary customer our how to of future environment. industry, me of confident share both their a the in once looking visit. color turning macroeconomic over database our The per and and and and reducing our promise over The to remain we segments of Bally's see remain broader play resiliency unrated We seen call remain our the quite the the segments in we happening and property welcoming squeezed bright are the team family forward future With believe to Queen it that, a the Bally's guests overall turn Casino ahead holds. Marcus. for to before that with appears healthy customer to lower-end we've give mirroring and visits these to spend our Finally, visitation Like what's trend upper-end of the to and

Marcus Glover

George. Thanks,

XXXX by As our and were a steady, market-specific headwinds few George that Robeson though have flow-through. highlighted, impacted quarter third EBITDAR results tempered

Atlantic the from were previous year. in to Interactive approximately headwinds, bottom this in measured on quarter of aforementioned more $XXX a flow-through was Island in by driven offset in decreased gain to EBITDAR a a with in XX% by a North in our million a consolidated & X% and revenue $XXX Casino Segment ramp ongoing Third decline revenues of Adjusted segment. to Resorts was margins X% versus for basis revenue $XXX decrease to segment addition many million, XX% year City, strength than year-on-year declined as line. our ago, million, markets Rhode the American less Chicago. predominantly XX%

margins range initiatives million, we and that includes the we rationale pursuing efficiency-focused now revenue for expect a reporting time, saw across of various EBITDAR profitability. to declined EBITDAR of constant $XXX while a benefit points increased of the adjusted this EBITDAR on portfolio assets of adjusted XX% the lines coming the margins portfolio leading to the margins revenue approximately actively business. million. short of segment a in relatively business segment XX%, U.S. at expand from looking a integrated beginning parts rose implement to the will initiatives basis on X% basis. a Within XXX are Segment currency International dollar enhance basis $XX to everything Interactive in X% begin quarters. centralizing to to We are expanded year-on-year. period This to of diverse in adjusted segment, U.K. our Having and growth X%

of these deconsolidation royalty be earlier, for presentation with form the of operations, Asia As carve-out our principally its and the financial markets in of will Robeson revenues. mentioned

result efficiently immaterial business revenue have to XX% is related materially including prior the our exited going revenues these in flow lower can the development, independent the cash more a relative company, streams representing benefit their of As effectively, approximately impact will separation. but relevant the an cost be to from entire is but development royalty operating been opportunities has result, modestly the company. also the with of we presentation, XXX we more and in expectation costs find directly believe via company, markets structure dilute The that be independent operating because ex cash minimal forward participates flow and owner's software will in because engineering associated operating will of colleagues, and high-margin of But assumed between basis, the free which an nimble more growth. investment they X% expense EBITDA will it. by that an cost particular, royalty that all for This dilution on has an the with growth, free their mentality,

$XX only in presentation, the development pro will impact. America segment lower have generated continue operating and and expect approximately improvement. offloaded year-over-year Interactive immaterial costs $XX an forma be iGaming free as being is a operations our ramp. generated bottom cash we of reset will million, Island an the narrowing but So our operations loss Rhode that to XX% from to EBITDA EBITDA flow be will of after OSB segment revenue modestly continue and in this The revenues North our adjusted line million, loss

ended capital representing shares. our options outstanding structure. the million additional We with an XX.X and million other to approximately XX.X with Turning warrants, incremental quarter shares dilution

In the billion is million On active capture merger closing, are us, an the allow long-term we our quarter operate on the support. assets affiliate. will bright many the $XXX the for and $X.X time proposed as put us we Standard General's prepare and which and We transaction of sheet, Bally's for this front to efficiently working third Operator? the cash part debt. portfolio with exited is fronts, for we and of in to future balance diligently the of believe Casino processes, more appropriate your in with to place of of Bally's, opportunities addition appreciate clean

Operator

conclude does you today's you this may participation, Thank disconnect. And now and program. for your

Bally's (BALY) 6 Nov 242024 Q3 Earnings call transcript