Bally’s Expands Its Portfolio and Footprint
One of the key drivers of Bally’s growth in the third quarter was its strategic acquisitions and partnerships that expanded its portfolio and footprint across the gaming and entertainment industry. The company completed the acquisitions of Tropicana Evansville in Indiana, Jumer’s Casino & Hotel in Illinois, and Gamesys Group plc, a leading online gaming operator in the UK and Europe. The company also entered into definitive agreements to acquire Betrivers.com, a premier online sports betting and casino platform, and The Cosmopolitan of Las Vegas, a luxury resort and casino on the Las Vegas Strip.
These transactions enhanced Bally’s diversification and scale, as well as its online and interactive capabilities. The company now operates 16 casinos in 11 states, with a total of approximately 15,000 slot machines, 500 table games, and 5,000 hotel rooms. The company also has access to 28 online sports betting and iGaming markets in the US and internationally, with a combined customer base of over 10 million active users.
Bally’s Invests in Its Existing Properties and Brands
Another factor that contributed to Bally’s growth in the third quarter was its capital investments and renovations in its existing properties and brands. The company invested $82 million in the quarter, mainly for property improvements, new gaming equipment, and technology upgrades. The company also rebranded several of its properties under the Bally’s name, including Bally’s Atlantic City, Bally’s Black Hawk, and Bally’s Las Vegas. The company plans to rebrand more properties in the future, as well as launch its Bally’s Rewards loyalty program, to create a consistent and unified customer experience across its portfolio.
Bally’s Delivers Strong Operational Performance and Cash Flow
The third quarter also demonstrated Bally’s operational excellence and cash flow generation. The company achieved record margins of 31% for adjusted EBITDA, an increase of 300 basis points year-over-year, driven by its cost efficiencies, revenue synergies, and operating leverage. The company also generated free cash flow of $195 million, an increase of 79% year-over-year, which enabled it to reduce its net debt by $117 million and improve its leverage ratio to 5.6x, down from 6.3x at the end of the second quarter. The company also returned capital to shareholders by initiating a quarterly cash dividend of $0.15 per share, payable on November 15, 2023.
Bally’s Raises Its Full-Year Guidance for 2023
Based on its strong performance in the third quarter and its positive outlook for the fourth quarter, Bally’s raised its full-year guidance for 2023. The company now expects to generate revenue of $4.1 billion to $4.2 billion, up from its previous range of $3.9 billion to $4.1 billion, and adjusted EBITDA of $1.25 billion to $1.3 billion, up from its previous range of $1.15 billion to $1.25 billion. The company also expects to close its pending acquisitions of Betrivers.com and The Cosmopolitan of Las Vegas by the end of the year, subject to regulatory approvals and customary closing conditions.
Bally’s Remains Confident in Its Growth Strategy and Vision
In conclusion, Bally’s delivered a stellar quarter that reflected its successful execution of its growth strategy and vision. The company’s Chairman, Soo Kim, stated, “We are extremely pleased with our third quarter results, which demonstrate the strength and resilience of our business model, as well as our ability to create value for our shareholders. We continue to pursue strategic opportunities that enhance our portfolio and footprint, while investing in our existing properties and brands to drive organic growth and customer loyalty. We remain confident in our long-term prospects and look forward to delivering sustained growth and profitability in the future.”
