Bally's Corporation Q1 FY2024 earnings call

• Segment Performances: Casinos and Resorts saw 4.1% revenue growth, North America Interactive had 70% revenue growth, and International Interactive had a 4% decline. - Development Pipelines: Chicago temporary facility ramping up, on track to access RiverNorth campus in July and complete permanent casino by September 26; Tropicana in Las Vegas closed on April 2, preparing for demolition; New York licensing process delayed to no earlier than late 2025. - Interactive Segments: U.K. in International Interactive continues strong performance, Asia market showing signs of stabilization, Europe anticipating boost from lifted advertising restrictions, North America Interactive had strong quarter with iGaming growth in NJ, PA, and RI launch, expecting adjusted EBITDA loss of ~$30M in 2024 but narrowing later.

Bally's Corporation reported first quarter 2024 revenues of $618 million, up 3% year-over-year. The Casinos and Resorts segment saw a 4% increase in revenue to $342.3 million. The North America Interactive segment experienced a substantial 70% growth in revenue to $41.5 million. The International Interactive segment saw a 4% decline to $235 million, with the U.K. operations in International Interactive posting a 12% increase in revenues on a U.S. dollar basis and 7% rise on a constant currency basis. The Casinos and Resorts segment contributed $342.3 million, North America Interactive $41.5 million, and International Interactive $235 million to the total revenue.

Reiterated 2024 guidance: revenue in range $2.5 billion to $2.7 billion and adjusted EBITDAR $655 million to $695 million. Reflects closure of Tropicana, growth in International Interactive, and ~$30 million adjusted EBITDA loss in North America Interactive.

• Weather impacts on Casinos and Resorts segment, including January adverse weather. - Construction on Providence bridge affecting Rhode Island properties. - Market variability in Asia for International Interactive. - Delayed licensing process in New York impacting development timeline.

Q: Asked about sustainability of U.K. performance and Spain's impact.

A: Robeson Reeves said U.K. performance solid with more tools to grow, Spain's ad decree reversal positive.

Q: Follow-up on Providence bridge and interactive angle.

A: George Papanier said bridge impact not material, Rhode Island iGaming launch doing well.

Q: Question on North American interactive business long-term vision.

A: Marcus Glover and Robeson Reeves discussed focus on iGaming, cost structure, and future growth.

Q: Question on Tropicana timetable.

A: Charlie Diao said no urgency to get certainty as option value increases.

Q: Question on Casinos and Resorts margins.

A: George Papanier and Marcus Glover discussed weather and hold impacts on margins.

Q: Question on North America Interactive cost side and rationalization.

A: Marcus Glover discussed cost structure improvements and revenue gains.

Q: Question on Chicago temporary facility ramping and margins.

A: Marcus Glover and George Papanier discussed ramping and focus on top line.

Q: Question on OSB launch in U.K. marketing.

A: Robeson Reeves said focus on cross-selling and acquiring volume.

Q: Question on Chicago temporary facility customer insights.

A: George Papanier discussed customer demographics and catchment area.

Q: Question on Asia market stabilization.

A: George Papanier discussed online Pachinko launch and traction.