Bally's (US:BALY)2022-02-24 16:50Financial Data and Key Metrics Changes - For Q4 2021, the company reported net revenues of $548 million and adjusted EBITDA of $119.1 million, which included a $5.7 million loss at Bally's AC [24][25] - Total debt outstanding at the end of the quarter was $3.53 billion, with cash on the balance sheet just over $200 million [25] - The company expects total revenue for 2022 to be between $2.4 billion and $2.5 billion, with adjusted EBITDA projected between $560 million and $580 million [21] Business Line Data and Key Metrics Changes - The Casinos and Resorts segment generated revenues of $983 million and EBITDA of $395 million for 2021, with a 40% EBITDA margin [13] - The North America Interactive segment reported $90 million in revenue for Q4, compared to $11 million in Q3, with projected revenue of $125 million for 2022 [19][20] - The International Interactive segment saw a 10% year-on-year revenue increase in the UK and an 18% increase in Asia for 2021 [17] Market Data and Key Metrics Changes - In the UK, Q4 revenues were down 5% year-on-year, while Asia saw an 8% increase [17] - The company expects low to mid-single-digit growth in the UK for 2022, while Asia is projected to deliver double-digit growth [18] Company Strategy and Development Direction - The company is focused on an omnichannel strategy, integrating its digital and retail operations to enhance customer acquisition and engagement [10][12] - Bally's plans to launch new products and expand its market presence in states like Arizona and New York, emphasizing a cautious marketing approach due to tax rates [11][31] - The company aims to maintain a strong focus on responsible gaming and ESG initiatives, establishing a dedicated ESG committee [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Gamesys and the potential for growth in 2022, despite challenges from COVID and market conditions [7][14] - The company anticipates flat or slightly increased revenues in 2022, with EBITDA margins expected to remain stable [14] - Management highlighted the importance of customer-centricity and the need for high-quality product launches over speed to market [10] Other Important Information - Bally's has initiated a cross-sell campaign that has shown positive early results, with customer acquisition costs coming in under $200 [11] - The company plans to invest approximately $190 million in capital expenditures for 2022, focusing on property enhancements and new amenities [15] Q&A Session Summary Question: Status of new UK gaming regulations - Management noted delays in the timeline for the white paper on UK gaming regulations, with expectations for a decision in May [28][29] Question: Marketing strategy in New York - The company plans to leverage its existing database of New York players and approach marketing cautiously due to high tax rates [31] Question: Integration of technology from Gamesys - Management reported significant progress in integrating technology from Gamesys and other acquisitions, with a focus on creating a unified platform [33][34] Question: Maximum leverage levels - Management expressed comfort with current leverage levels and plans to reduce leverage over time through profit growth [38][39] Question: North America Interactive losses - The company expects to see a reduction in losses from $80 million to $60 million, influenced by timing and cautious spending [40][41] Question: Real estate monetization - Management indicated flexibility in monetizing properties but emphasized strategic considerations for any potential sales [54] Question: Update on downtown Chicago license bid - A decision from the city regarding the downtown Chicago license is expected in April [57] Question: Share repurchases strategy - The company is currently not active in the market for share repurchases but will consider it alongside other investment opportunities [62]