Bally's Corp Q2 FY2024 earnings call

• Recent Announcements: Entered a binding term sheet for $940 million strategic construction and financing with Gaming & Leisure Properties, sale-leaseback transactions for Bally’s Kansas City, Shreveport, and modified Lincoln property, and merger agreement with The Queen Casino & Entertainment Inc.
• Chicago Development: Progress on permanent casino resort with demolition underway, site plan approvals in process. Temporary facility has over 1 million visitors and a database over 100,000.
• Las Vegas: Demolition of Tropicana hotel tower planned for October, with land for MLB stadium development.
• New York: Licensing submission process expected in June 2025, winner announced early 2026.
• Interactive Segments: North America Interactive benefited from iGaming in Rhode Island and sports betting rollouts. International Interactive strong in UK, working on improving non-UK operations.

Casino & Resorts: Revenue was $343.1 million, up 3% year-over-year. Adjusted EBITDAR was approximately $100 million, a 10% decrease. North America Interactive: Revenue was $49.2 million, a 95% year-over-year increase. Adjusted EBITDAR loss was approximately $7 million. International Interactive: Revenue declined 7% year-over-year to $229 million, but the UK segment saw 9% revenue growth in USD. Adjusted EBITDAR margins expanded 130 basis points to 35%.

• 2024 revenues guided to $2.5 billion to $2.7 billion, adjusted EBITDAR to $655 million to $695 million; lower end of range likely due to Casino & Resorts headwinds and International Interactive non-UK softness.
• CapEx spend reduced to approximately $115 million for the year, down from initial estimate of $165 million.

• Market Headwinds: Rhode Island bridge disruption, Atlantic City team turnover, Tropicana demolition impact.
• Regulatory/Operational: Challenges in non-UK International Interactive markets, timing of approvals for New York and Pennsylvania projects.

Q: Does a new kind of post-deal structure change anything operationally or strategically for you guys, for instance, are there any synergies that we should be thinking about to clean assets? And are there any kind of assets that you would deem non-core to the strategy at this stage?

A: Robeson Reeves stated it's early to speak on synergies, and no non-core assets at this stage.

Q: Quantify the total sum of impact that you saw across Rhode Island, Massachusetts and Atlantic City in Casinos & resorts?

A: Marcus and George discussed impacts in Rhode Island (12%-15% traffic impact), Atlantic City (team turnover and repositioning), and Tropicana ($4 million EBITDAR impact).

Q: On the North American Interactive business, update on cost structure and timing of different states?

A: Robeson Reeves mentioned technology stack transition, sports launches in Maryland, Illinois, Tennessee, and focus on optimizing product mix in Pennsylvania.

Q: Chicago approval process and restricted cash details?

A: George Papanier discussed design approval timeline and Marcus Glover explained restricted cash release related to Chicago subsidiary.