Bally’s Posts Mixed Q4, Cancels Earnings Call as Shares Plummet

Bally’s Corporation suddenly canceled its earnings call shortly after its stock’s value plummeted. The company’s Q4 report wasn’t very reassuring either, as EBITDA remained unimpressive across all segments, suggesting a troubled period for the American operator.

The Earnings Call Was Canceled

On March 5, Bally’s Corporation’s shares took a sudden dip, experiencing a 23.6% decline in a single day. The stock closed at $12.99 on that day, marking a drop of over $4 from the closing price of $17 on the day before.

Shortly after the sudden decline, Bally’s executives opted to cancel the earnings call, which had been just about to start. The company leadership provided no reason for its decision.

Executives, however, did release statements on the company’s financial situation in the Q4 report. According to CEO Robeson Reeves, 2024 was a transformational year for the company, which broke ground on its new Chicago property and imploded the iconic Tropicana casino in Las Vegas.

Reeves also highlighted a number of post-Q4 transactions with The Queen Casino & Entertainment and Standard General. These agreements positioned Bally’s for “compelling long-term growth.”

The ‘new’ Bally’s 2.0 is a dynamic global land-based and online casino operator with attractive growth pipelines in U.S. gaming.

Robeson Reeves, CEO, Bally’s Corporation

Marcus Glover, Bally’s chief financial officer, added that the Bally’s team is hard at work at optimizing the company’s structure across multiple fronts.

The Company’s Q4 Was Mixed

Speaking of Bally’s financial report, the company posted consolidated revenue of $580.3 million for Q4, marking a slight decline from the prior-year period. Conversely, the company’s full-year revenue experienced a modest increase of less than 1% to $2.45 billion.

The Casino & Resorts segment was mostly stable with its Q4 revenue at $324.4 million, and full-year revenue at $1.36 billion. Segment adjusted EBITDAR for Q4 declined 14.6% YOY to $80.9 million due to higher costs and lower flow-through.

The International Interactive segment, meanwhile, posted revenue of $214.5 million for the quarter ended December 31, down from $236 million in the prior-year period. Segment adjusted EBITDAR for the vertical stood at $81.6 million, down 12.4% YOY. The division’s full-year revenue plummeted to $909 million from $973.2 million in 2023.

The North America Interactive segment was the silver lining of the quarter as its Q4 revenue increased to $41.5 million, up 22% YOY. The segment reported an adjusted EBITDAR loss of $12.3 million. North America Interactive’s full-year revenue, on the other hand, capped at $177.8 million, up 45% YOY.

Bally’s Chicago IPO Failed

The mixed financials and EBITDA declines are not the only problems on Bally’s mind, though. The company’s bid to raise $250 million in an initial public offering (IPO) for its highly anticipated Chicago casino project just hit a significant roadblock and had to cancel the offering.

This unexpected hurdle was disconcerting to Bally’s investors, likely contributing to the waning share price. Despite the setbacks, Bally’s is now planning to relaunch the IPO while maintaining investor interest.