Bally’s Corporation has disclosed its financial outcomes for the concluding quarter and the entirety of 2024, revealing a nuanced year of strategic maneuvers amid some operational hurdles. The company witnessed a slight decrease in annual revenue, reporting a 5.1% drop to $580.4 million in Q4, while the full-year figures stood resilient at approximately $2.45 billion, marginally up from 2023.
The detailed financial report highlighted a dip in the Casinos & Resorts segment, which drew $324.4 million in the fourth quarter, marking a 5.2% decrease from the previous year. This downturn was somewhat offset by an 11.3% revenue increase in the U.K. online sector, although the International Interactive segment overall fell by 9.1% to $214.5 million. Conversely, the North America Interactive division was a bright spot, soaring by 24.4% to reach $41.5 million for the quarter.
Robeson Reeves, CEO of Bally’s, characterized 2024 as a transformational period, focusing on substantial developments such as the initiation of the permanent Chicago casino project and the demolition of the Tropicana in Las Vegas, which paves the way for the upcoming Major League Baseball’s A’s franchise relocation.
Strategic Developments and Operational Highlights
Post-quarter, Bally’s finalized strategic transactions with The Queen Casino & Entertainment and Standard General, amplifying its scale and setting the stage for potential extensive growth. The integration of Queen’s four properties, which collectively generated $57.6 million in Q4 revenue and $225.2 million annually, marks a significant enhancement to Bally’s domestic gaming operations.
Despite some geographic-specific challenges, such as reduced visitation at the Lincoln property due to ongoing local bridge construction and turnover in the Atlantic City property’s marketing team, there were positives. Notably, the Kansas City property experienced robust performance, benefiting from a newly opened high-limit room.
Financial Insights and Future Outlook
The International Interactive sector, while facing a revenue decline, saw an encouraging 11.3% growth in the United Kingdom, driven by strong player retention and strategic revenue optimization initiatives. However, adjusted EBITDAR across the segments dropped by 12.4% year-over-year, primarily due to higher operational costs and lower revenue conversion.
Looking ahead, George Papanier, President of Bally’s, expressed optimism about the future, citing final approval for the Bally’s Chicago Casino master plan and ongoing development as key factors. Marcus Glover, CFO, reiterated the focus on enhancing operational efficiency and integrating best practices from recent acquisitions to foster significant long-term value creation.
In summary, while Bally’s faced a mix of challenges and victories in 2024, the strategic initiatives undertaken have positioned the company for potential growth and operational efficiency improvements in the coming years. The company’s current leadership underlined that it remains committed to leveraging its expanded portfolio and strategic acquisitions to enhance its market position and stakeholder value.