Bally's Corporation (BALY) Bundle
A Brief History of Bally's Corporation
Bally's Corporation, formerly known as Twin River Worldwide Holdings, Inc., has undergone significant transformations in recent years, culminating in its rebranding in 2020. The company has focused on expanding its portfolio through strategic acquisitions and partnerships, while also enhancing its operational efficiency and market reach.
Financial Performance Overview
As of September 30, 2024, Bally's reported a net loss of $247.9 million for the quarter, compared to a net loss of $61.8 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $482.0 million, reflecting a significant decline from the net income of $90.9 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $(247.9) million | $(61.8) million | $(482.0) million | $90.9 million |
| Earnings Per Share | $(5.10) | $(1.15) | $(9.96) | $1.68 |
Strategic Partnerships
In 2020, Bally's established a strategic partnership with Sinclair Broadcast Group, enhancing its media presence and operational capabilities. This relationship included a framework agreement allowing Bally's to access Sinclair's sports networks and streaming services, significantly boosting its marketing and consumer engagement.
Acquisitions and Expansions
Throughout 2024, Bally's continued its expansion strategy by entering into lease agreements and acquiring properties. Notably, the company planned to sell and lease back its properties in Kansas City and Shreveport for $395 million, with an initial annual rent of $32.2 million. Additionally, Bally's Twin River property is set to be sold and leased back for $735 million, with initial annual rent pegged at $58.8 million.
Capital Expenditures
For the nine months ended September 30, 2024, Bally's reported capital expenditures of $155.8 million, a decrease from $266.2 million in the previous year. This reduction reflects a strategic focus on essential projects and maintenance at its casino properties, particularly the ongoing development of the Bally's Chicago permanent facility.
Debt and Financial Obligations
As of September 30, 2024, Bally's total long-term debt stood at approximately $3.3 billion, including a $1.86 billion Term Loan Facility and $737.9 million in senior notes due 2029. The company has been actively managing its debt through various refinancing strategies and capital return programs.
| Debt Overview | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Term Loan Facility | $1.86 billion | $1.87 billion |
| 5.625% Senior Notes due 2029 | $737.9 million | $736.4 million |
| 5.875% Senior Notes due 2031 | $721.0 million | $719.9 million |
Operational Challenges
Bally's has faced operational challenges, including a restructuring plan announced in January 2023, aimed at reducing costs and improving profitability within its Interactive segment. The decision to close the Tropicana Las Vegas on April 2, 2024, was part of a strategy to redevelop the site into a modern integrated resort.
Market Position and Future Outlook
Despite recent losses, Bally's is positioning itself for future growth through strategic expansions and partnerships. The company aims to leverage its comprehensive gaming and hospitality portfolio to enhance its market presence and operational efficiency moving forward.
A Who Owns Bally's Corporation (BALY)
Ownership Structure
Bally's Corporation (BALY) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. As of October 2024, the following table summarizes the major shareholders of Bally's Corporation:
| Shareholder Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 30,000,000 | 73.8% |
| Insiders (Executives & Directors) | 2,500,000 | 6.1% |
| Retail Investors | 8,153,346 | 20.1% |
| Total Shares Outstanding | 40,653,346 | 100% |
Major Institutional Shareholders
The largest institutional shareholders of Bally's Corporation as of the latest reporting period are:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,000,000 | 19.7% |
| BlackRock, Inc. | 6,500,000 | 16.0% |
| State Street Corporation | 5,000,000 | 12.3% |
| Invesco Ltd. | 4,000,000 | 9.8% |
| Other Institutional Investors | 6,500,000 | 16.0% |
Executive Ownership
Key executives and directors also hold significant stakes in Bally's Corporation. The following table details the shares owned by top executives:
| Executive Name | Position | Shares Owned |
|---|---|---|
| George Papanier | President & CEO | 1,000,000 |
| Mark Frissora | Chairman | 750,000 |
| Other Executives | Various | 750,000 |
Recent Stock Performance
As of October 2024, Bally's Corporation's stock performance has fluctuated significantly. The company's stock price was approximately $5.92, down from a high of $30.00 in the previous year. The market capitalization stood at around $240 million.
Financial Overview
For the nine months ended September 30, 2024, Bally's reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $1.87 billion |
| Net Loss | ($482 million) |
| Adjusted EBITDA | $300 million |
| Total Assets | $6.41 billion |
| Total Liabilities | $6.17 billion |
Conclusion of Ownership Dynamics
Ownership of Bally's Corporation as of 2024 reflects a mix of institutional and individual investors, with a significant portion held by management, indicating confidence in the company's future performance. The financial results show a challenging year with significant losses but also highlight a substantial revenue base.
Bally's Corporation (BALY) Mission Statement
Bally's Corporation is committed to providing exceptional gaming and entertainment experiences while maintaining the highest standards of integrity and social responsibility. The company's mission emphasizes a customer-centric approach, seeking to enhance guest satisfaction through innovative service offerings and sustainable business practices.
Financial Overview
As of September 30, 2024, Bally's Corporation reported a net loss of $247.9 million, equating to a diluted loss per share of $(5.10). This represents a significant decline compared to a net loss of $61.8 million, or $(1.15) per diluted share, for the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $(247.9) million | $(61.8) million | $(482.0) million | $90.9 million |
| Adjusted EBITDA | $137.7 million | $141.6 million | $387.7 million | $398.0 million |
| Revenue | $630.0 million | $632.5 million | $1.87 billion | $1.84 billion |
| Loss from Operations | $(157.7) million | $37.2 million | $(226.0) million | $420.0 million |
Operational Segments
Bally's operates through three primary segments: Casinos & Resorts, International Interactive, and North America Interactive. Each segment has distinct financial performances and operational strategies.
| Segment | Q3 Revenue 2024 | Q3 Revenue 2023 | 9 Months Revenue 2024 | 9 Months Revenue 2023 |
|---|---|---|---|---|
| Casinos & Resorts | $353.4 million | $359.0 million | $1.04 billion | $1.02 billion |
| International Interactive | $230.9 million | $243.9 million | $695.0 million | $737.2 million |
| North America Interactive | $45.7 million | $29.6 million | $136.4 million | $79.2 million |
Recent Developments
In 2024, Bally's Corporation has faced significant challenges, including the closure of the Tropicana Las Vegas property, which impacted revenue and operational metrics. The company has also seen an increase in interest expenses due to rising interest rates, contributing to its financial losses.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, amounted to $155.8 million, a decrease from $266.2 million in the same period of 2023. Key investments have been directed towards the ongoing development of the Bally's Chicago permanent facility.
| Expenditure Type | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Casinos & Resorts | $20.8 million | $40.2 million | $45.0 million | $99.9 million |
| International Interactive | $0.1 million | $0.5 million | $0.4 million | $2.1 million |
| North America Interactive | $0.9 million | $0.1 million | $1.6 million | $1.6 million |
| Other | $70.6 million | $105.9 million | $108.8 million | $162.6 million |
Long-term Debt
As of September 30, 2024, Bally's long-term debt stood at approximately $3.67 billion, which includes various financial instruments and obligations that impact the company's financial leverage and operational flexibility.
| Debt Instrument | Amount (in millions) |
|---|---|
| Term Loan Facility | $1,891.5 million |
| Revolving Credit Facility | $350.0 million |
| 5.625% Senior Notes due 2029 | $750.0 million |
| 5.875% Senior Notes due 2031 | $735.0 million |
| Total Long-term Debt | $3,670.9 million |
How Bally's Corporation (BALY) Works
Business Overview
Bally's Corporation operates as a diversified gaming and entertainment company with a focus on casinos, resorts, and interactive gaming. As of 2024, it has expanded its footprint across multiple states and includes a mix of traditional gaming operations and online platforms.
Financial Performance
For the three months ended September 30, 2024, Bally's Corporation reported total revenue of $629.974 million, a slight decrease from $632.477 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue increased to $1.870 billion from $1.837 billion year-over-year.
| Period | Total Revenue (in millions) | Net Income (Loss) (in millions) | Earnings (Loss) Per Share |
|---|---|---|---|
| Q3 2024 | $629.974 | $(247.9) | $(5.10) |
| Q3 2023 | $632.477 | $(61.8) | $(1.15) |
| 9M 2024 | $1,870.113 | $(482.0) | $(9.96) |
| 9M 2023 | $1,837.403 | $90.9 | $1.67 |
Segment Performance
Bally's segments include Casinos & Resorts, International Interactive, and North America Interactive. The following table summarizes revenue and Adjusted EBITDAR by segment:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2024 Adjusted EBITDAR (in thousands) | Q3 2023 Revenue (in thousands) | Q3 2023 Adjusted EBITDAR (in thousands) |
|---|---|---|---|---|
| Casinos & Resorts | $353,358 | $100,442 | $359,026 | $118,184 |
| International Interactive | $230,937 | $90,030 | $243,884 | $85,477 |
| North America Interactive | $45,679 | $(10,976) | $29,567 | $(17,561) |
Operational Highlights
The closure of the Tropicana Las Vegas property on April 2, 2024, led to significant changes in operational results, including accelerated depreciation of $80.1 million. This contributed to a loss from operations of $157.7 million for Q3 2024, compared to income from operations of $37.2 million in Q3 2023.
Expenses Overview
Gaming and non-gaming expenses for Q3 2024 totaled $287.2 million, a decrease from the previous year's $288.1 million. General and administrative expenses increased significantly, reaching $273.593 million in Q3 2024, compared to $230.582 million in Q3 2023.
| Expense Type | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) |
|---|---|---|
| Gaming and Non-gaming Expenses | $287,200 | $288,100 |
| General and Administrative | $273,593 | $230,582 |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Bally's reported net cash provided by operating activities of $76.178 million. Capital expenditures for the same period amounted to $155.757 million.
| Cash Flow Activity | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $76,178 | $118,359 |
| Capital Expenditures | $155,757 | $266,231 |
Debt and Interest Expense
Interest expense for the nine months ended September 30, 2024 was approximately $221.306 million, compared to $200.987 million in the same period of 2023. The increase is attributed to higher interest rates on borrowings.
Tax Provisions
Bally's recorded a benefit for income taxes of $33.629 million for Q3 2024, contrasting with a provision for income taxes of $43.936 million in Q3 2023. The effective tax rate for 2024 was 0.8%, down from 62.7% in 2023 due to various factors, including valuation allowances.
Conclusion
As of 2024, Bally's Corporation continues to navigate a challenging gaming landscape, marked by significant operational changes, fluctuating revenues, and evolving market dynamics.
How Bally's Corporation (BALY) Makes Money
Revenue Streams
Bally's Corporation generates revenue through several key segments, primarily focused on gaming and non-gaming operations.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($ in thousands) | Year-to-Date 2024 Revenue (in thousands) | Year-to-Date 2023 Revenue (in thousands) | Change ($ in thousands) |
|---|---|---|---|---|---|---|
| Casinos & Resorts | 353,358 | 359,026 | (5,668) | 1,038,738 | 1,020,974 | 17,764 |
| International Interactive | 230,937 | 243,884 | (12,947) | 695,016 | 737,230 | (42,214) |
| North America Interactive | 45,679 | 29,567 | 16,112 | 136,359 | 79,199 | 57,160 |
| Total Revenue | 629,974 | 632,477 | (2,503) | 1,870,113 | 1,837,403 | 32,710 |
Segment Performance
The performance of Bally's segments can be further analyzed through Adjusted EBITDAR, which reflects earnings before interest, taxes, depreciation, amortization, and certain other expenses.
| Segment | Q3 2024 Adjusted EBITDAR (in thousands) | Q3 2023 Adjusted EBITDAR (in thousands) | Change ($ in thousands) | Year-to-Date 2024 Adjusted EBITDAR (in thousands) | Year-to-Date 2023 Adjusted EBITDAR (in thousands) | Change ($ in thousands) |
|---|---|---|---|---|---|---|
| Casinos & Resorts | 100,442 | 118,184 | (17,742) | 289,661 | 334,312 | (44,651) |
| International Interactive | 90,030 | 85,477 | 4,553 | 254,854 | 250,352 | 4,502 |
| North America Interactive | (10,976) | (17,561) | 6,585 | (27,891) | (45,809) | 17,918 |
| Total Adjusted EBITDAR | 166,333 | 173,217 | (6,884) | 476,247 | 492,168 | (15,921) |
Gaming Revenue Analysis
Gaming revenue is the largest contributor to Bally's overall revenue, with notable performance variations across segments.
- Casinos & Resorts: Generated $256,234 thousand in Q3 2024, up from $245,687 thousand in Q3 2023, reflecting a $10,547 thousand increase.
- International Interactive: Revenue decreased to $228,693 thousand from $240,577 thousand year-over-year, a decline of $11,884 thousand.
- North America Interactive: Revenue increased significantly, reaching $38,979 thousand, up from $22,631 thousand, marking a $16,348 thousand increase.
Non-Gaming Revenue Analysis
Non-gaming revenue has shown fluctuations, with a decrease noted in several areas.
- Casinos & Resorts Non-gaming: Revenue fell to $97,124 thousand from $113,339 thousand year-over-year, a decrease of $16,215 thousand.
- International Interactive Non-gaming: Revenue decreased to $2,244 thousand from $3,307 thousand, a drop of $1,063 thousand.
- North America Interactive Non-gaming: Revenue slightly decreased to $6,700 thousand from $6,936 thousand.
Operating Costs and Expenses
Bally's operating expenses include gaming and non-gaming costs, which are critical for understanding profitability.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($ in thousands) | Year-to-Date 2024 (in thousands) | Year-to-Date 2023 (in thousands) | Change ($ in thousands) |
|---|---|---|---|---|---|---|
| Gaming Expenses | 234,908 | 229,131 | 5,777 | 707,222 | 665,731 | 41,491 |
| Non-gaming Expenses | 51,328 | 58,041 | (6,713) | 148,152 | 162,661 | (14,509) |
| General and Administrative | 273,593 | 230,582 | 43,011 | 774,448 | 732,147 | 42,301 |
| Total Operating Expenses | 787,629 | 595,241 | 192,388 | 2,096,150 | 1,417,453 | 678,697 |
Net Income (Loss)
Net loss for Bally's Corporation has been substantial, highlighting financial challenges.
| Period | Net Income (Loss) (in thousands) | Loss per Share (diluted) |
|---|---|---|
| Q3 2024 | (247,855) | (5.10) |
| Q3 2023 | (61,802) | (1.15) |
| Year-to-Date 2024 | (481,965) | (9.96) |
| Year-to-Date 2023 | 90,883 | 1.67 |
Overall, Bally's Corporation's revenue generation is heavily reliant on its gaming operations, with significant contributions from varying segments, while facing challenges in net income performance due to increased operating costs and fluctuating revenue streams.
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Resources:
- Bally's Corporation (BALY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bally's Corporation (BALY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bally's Corporation (BALY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.