Bally’s Reported Q2 2022 Results, Revised Full Year Guidance

Hospitality, gaming and entertainment company Bally’s Corporation released today its financial results for the second quarter of the year posting 106% growth in revenue year-over-year.

Revenue more than Doubled

For the three months ended June 30, 2022, Bally’s Corporation generated revenue of $552.5 million to more than double the $267.7 million the gaming and entertainment group achieved in the respective quarter of the year before.

“Our second quarter results reflect continued strength in our Casinos & Resorts segment, record margins in our International Interactive segment and continued growth in our North America Interactive segment particularly in BallyCasino.com in New Jersey, despite headwinds from significant FX volatility and challenges in Atlantic City,” summarized the quarter Bally’s chief executive officer Lee Fenton.

Adjusted EBITDA for the reported quarter was $141.2 million, an increase of 71% on $82.8 million Bally’s reported in the previous comparable period of 2021. Adjusted EBITDA margin came lower than in Q2 2021, 25.6% as opposed to 30.9%.

Adjusted EBITDA was negatively impacted by the more than doubled interest expense net of interest to $45.8 million ($21.3 million in Q2 2021), nearly tripled depreciation and amortization cost to $74.8 million ($25.7 in Q2 2021) and the decrease in non-operating loss to $25.4 million ($36.7 million in Q2 2021).

“We are pleased with the Company’s record cash flow from operations in the quarter and are focused on continued incremental cash flow generation initiatives,” added Fenton.

Net Income Decreased

Net income from operations amounted to $59.5 million, down 14% compared to $68.9 million Bally’s registered in the second quarter of 2021. Net income margin was 10.8%, significantly lower than the 25.8% in Q2 2021.

As of June 30, 2022, Bally’s had $176.2 million in cash and cash equivalents and $1.94 billion in term loan facility while long-term debt stood at $3.34 billion.

Bally’s revised its full-year 2022 guidance down to the $2.2 billion – $2.3 billion revenue and adjusted EBITDA of $535 million – $550 million.

In February, Bally’s stated its expectations of full-year revenue in the $2.4 billion – $2.5 billion range and adjusted EBITDA in the $560 million – $580 million range, and in May it re-affirmed its previous guidance but the downward revision now was as a result of its performance in the first six months, adverse foreign exchange movements and lower expectations for Atlantic City.

Outside of the reported quarter, Bally’s completed its tender offer and repurchased 4.7 million of common stock at $22.00 per share, paying $103.3 million and was left with an additional $334.6 million under its previously announced capital return program.