Bally's (BALY) - 2025 Q2 - Quarterly Results

Financial Highlights Bally's reported $657.5 million in Q2 2025 revenue, a 5.8% increase year-over-year, primarily driven by Casinos & Resorts and North America Interactive segments, with adjusted growth in International Interactive Q2 2025 Revenue by Segment (vs. Q2 2024) | Segment | Q2 2025 Revenue (in thousands) | Q2 2024 Revenue (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Casinos & Resorts | $393,333 | $343,051 | +14.7% | | International Interactive | $206,066 | $229,396 | -10.2% | | North America Interactive | $56,502 | $46,500 | +21.5% | | Total Revenue | $657,534 | $621,657 | +5.8% | - The company completed its merger with The Queen Casino & Entertainment on February 7, 2025, which contributed to the revenue growth[5] - Excluding the impact of the 2024 divestiture of its Asia interactive business, the International Interactive segment's revenue grew by 10.0% year-over-year[7] Management Commentary & Strategic Developments Management highlighted progress in "Bally's 2.0" transformation, including Chicago resort construction, the €2.7 billion Intralot S.A. agreement, AUD 200 million investment in Star Entertainment, and pursuit of a $4 billion Bronx resort license - Construction is in full swing at the permanent gaming and entertainment resort in Chicago, which will feature 3,400 slots, 170+ table games, and a 500-room hotel[6] - Announced a landmark agreement for Intralot S.A. to acquire Bally's International Interactive business for €2.7 billion in cash and stock[7][8] - Made an AUD 200 million strategic capital investment in Star Entertainment Group Limited, a leading Australian gaming company[10] - Continuing to pursue a New York City gaming license for a proposed $4 billion casino and resort in the Bronx[11] Segment Performance Review Casinos & Resorts revenue grew 14.7% to $393.3 million, North America Interactive revenue increased 21.5% to $56.5 million with positive EBITDAR, while International Interactive revenue declined but showed underlying growth Casinos & Resorts Casinos & Resorts revenue increased 14.7% to $393.3 million due to the Queen merger, with Segment Adjusted EBITDAR growing 6.2% to $106.0 million Casinos & Resorts Q2 2025 Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $393,333 | $343,051 | +14.7% | | Segment Adjusted EBITDAR | $105,967 | $99,801 | +6.2% | - Growth was primarily driven by the addition of four regional gaming properties from the Queen merger earlier in 2025[12] - Strong performance was noted in Quad Cities, Vicksburg, and Baton Rouge, while properties in Shreveport, Evansville, and Dover experienced increased competition[12] International Interactive International Interactive revenue declined 10.2% to $206.1 million due to divestiture, but grew 10.0% on an adjusted basis, with Segment Adjusted EBITDAR up 1.1% to $82.2 million International Interactive Q2 2025 Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $206,066 | $229,396 | -10.2% | | Segment Adjusted EBITDAR | $82,205 | $81,292 | +1.1% | - U.K. online revenue rose 8.8% (2.8% in constant currency) versus Q2 2024, driven by strong player retention and monetization[13] - Excluding the revenue from the divested Asia business, International Interactive revenue grew 10.0% year-over-year[13] North America Interactive North America Interactive revenue increased 21.5% to $56.5 million, achieving positive Adjusted EBITDAR of $2.5 million from a prior-year loss North America Interactive Q2 2025 Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $56,502 | $46,500 | +21.5% | | Segment Adjusted EBITDAR | $2,484 | ($2,196) | N/A (Turned to profit) | - The company is live with iGaming in New Jersey, Pennsylvania, Rhode Island, and Ontario[14] - The BallyBet sports offering is live in 13 states, including New Jersey and Ontario[14] Financial Statements & Data This section provides detailed financial tables, including segment revenue, Adjusted EBITDAR, balance sheet data, cash flow information, and supplemental combined financial data for comparability Revenue and Segment Adjusted EBITDAR This section presents detailed revenue and Segment Adjusted EBITDAR breakdowns for Q2 and six months ended June 30, 2025, comparing Successor, Predecessor, and Pro Forma combined results Revenue & Adjusted EBITDAR (Successor/Predecessor) | (in thousands) | Three Months Ended Jun 30, 2025 (Successor) | Three Months Ended Jun 30, 2024 (Predecessor) | | :--- | :--- | :--- | | Total Revenue | $657,534 | $621,657 | | Casinos & Resorts Adj. EBITDAR | $105,967 | $99,801 | | International Interactive Adj. EBITDAR | $82,205 | $81,292 | | North America Interactive Adj. EBITDAR | $2,484 | ($2,196) | Pro Forma Combined Revenue & Adjusted EBITDAR (Six Months) | (in thousands) | Six Months Ended Jun 30, 2025 | Six Months Ended Jun 30, 2024 | | :--- | :--- | :--- | | Total Revenue | $1,268,602 | $1,353,863 | | Casinos & Resorts Adj. EBITDAR | $206,536 | $225,525 | | International Interactive Adj. EBITDAR | $159,340 | $164,824 | | North America Interactive Adj. EBITDAR | ($4,103) | ($4,139) | Selected Financial Information (Balance Sheet & Cash Flow) This section details key balance sheet items as of June 30, 2025, including $174.6 million in cash and $3.58 billion in long-term debt, alongside post-merger cash flow data Balance Sheet Data (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $174,567 | $171,233 | | Long-term debt, including current portion | $3,581,169 | $3,318,773 | Cash Flow Data (Successor Period: Feb 8 - Jun 30, 2025) | Item | Amount (in thousands) | | :--- | :--- | | Capital Expenditures | $79,422 | | Cash paid for capitalized software | $20,533 | | Cash payments for triple net operating leases | $69,983 | Supplemental Unaudited Condensed Combined Financial Information This section provides supplemental combined financial information, integrating Bally's and Queen's historical results for enhanced comparability, and includes a reconciliation for Adjusted International Interactive revenue - The supplemental information combines historical results of Bally's and Queen to reflect the merger as if it occurred on January 1, 2024, for better comparability[36] Non-GAAP Adjusted International Interactive Revenue (Q2 2025 vs Q2 2024) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | International Interactive revenue (GAAP) | $206,066 | $229,396 | | Less: Revenue from divested markets | $0 | ($48,528) | | Less: Licensing revenue recognized | ($7,046) | $0 | | Adjusted International Interactive revenue | $199,020 | $180,868 | Non-GAAP Financial Measures The company utilizes non-GAAP measures, including Adjusted EBITDA and Segment Adjusted EBITDAR, to provide a clearer understanding of core operating results and facilitate period-to-period comparisons - Defines "Adjusted EBITDA" as earnings before interest, taxes, depreciation, amortization, non-operating income/expense, acquisition costs, share-based compensation, and other certain gains or losses[16] - Defines "Segment Adjusted EBITDAR" as Adjusted EBITDA plus rent expense associated with triple net operating leases, a key valuation metric for the Casinos & Resorts segment in the gaming industry[17][18]