Bally’s Q2 group revenue jumps 10% as US and International Interactive divisions grow
Bally Bet operator buoyed by record land-based revenue with North America interactive operations are “ramping up positively”
Bally’s has reported a 10% year-on-year (YoY) increase in its group revenue for Q2, generating $606.2m over the period.
Releasing its financial update for the quarter, the Providence-headquartered operator reported a slight decrease in group adjusted EBITDA, falling to $130m in Q2 from $137m for the same period last year.
In addition, Bally’s revealed a Q2 2023 net loss of $25.6m, down from the positive net figure of $59.5m in the same period in 2022.
At a divisional level, Bally’s North America Interactive division reported a 40% YoY increase in revenue during Q2 to $25.3m, driven by the firm’s New Jersey operations and a launch in Pennysylvania.
The division’s adjusted EBITDA losses shrank during Q2, from a negative $20.9m in Q2 2022 to negative $17.7m this quarter.
Bally’s core casino and resorts-based business confirmed an 11% YoY revenue rise in Q2 to $333.2m, representing a record revenue figure for the division. The arm generated a net income of $26.7m operating with an adjusted EBITDA of $79.7m.
The International Interactive division saw Q2 2023 revenue increase 5.6% YoY to $247.8m, with much of this rise due to Bally’s UK business, which saw revenue growth of 11.5% during the quarter.
International Interactive generated adjusted EBITDA of $84.6m in Q2 2023 compared with $82.6m in the same period of last year.
In May, Bally’s signed supply deals with Kambi and White Hat Gaming which was followed by the confirmation of the closure of its in-house developed Bally Bet sportsbook as part of a transition onto the Kambi platform.
Bally’s was also granted a virtual monopoly on igaming via the legalization of the vertical in its native Rhode Island.
The firm, which has two land-based casinos in the state is set to develop an online casino, slots, and table games platform in partnership with Stakelogic. This offering is set to launch in March, 2024.
Addressing the results, Bally’s CEO Robeson Reeves said: “Bally’s made significant strides this quarter, announcing new initiatives, achieving important project milestones, and building on our strong foundation for 2023 and beyond.
“North America Interactive igaming is ramping up positively, driven primarily by New Jersey and our successful June launch in Pennsylvania.
“Additionally, we are extremely pleased that the Rhode Island legislature legalized igaming, naming Bally’s as the sole provider in the state with an anticipated launch in March, 2024.
“In addition, we have made significant progress transitioning Bally Bet onto the Kambi and White Hat technology platforms, which is on track to rollout later this summer,” he added.
Bally’s has confirmed the maintenance of its Q1 2023 revenue guidance at a range of between $2.5bn and $2.6bn, with an adjusted EBITDAR range of between $665m and $700m.
The operator suggested this was down to “somewhat better” performance for the casino and resorts and International Interactive businesses versus its original expectations.
Speaking further on the revenue guidance, Bally’s cited North America interactive adjusted EBITDA losses at a range of between $50m to $60m, with a $10m increase in losses forecasted due to investment in the business centring on the launch in Pennsylvania and the rollout of the new Bally Bet product.
Robeson Reeves was recently interviewed by EGR as part of Issue 230, access the interview here.