On March 5, 2025, Ballys Corp (BALY, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. The company reported a quarterly revenue of $580.4 million, falling short of the analyst estimate of $599.14 million. The reported earnings per share (EPS) was -0.64, matching the estimated EPS, indicating a challenging quarter for the casino entertainment company.
Company Overview
Ballys Corp is a prominent casino entertainment company with a growing omnichannel presence. It operates approximately 15 casinos across 10 states, a golf course in New York, and a horse racetrack in Colorado. The company has expanded its international footprint with the acquisition of Aspers Casino in Newcastle, UK. Ballys also owns Bally's Interactive International, Bally Bet, and Bally Casino, enhancing its diverse entertainment offerings.
Performance and Challenges
The fourth quarter of 2024 was marked by a 5.1% year-over-year decline in company-wide revenue. The Casinos & Resorts segment saw a 5.2% decrease, while International Interactive revenue fell by 9.1%. Despite these challenges, North America Interactive revenue increased by 24.4%. The company faced operational hurdles, including higher costs and lower flow-through, impacting the Segment Adjusted EBITDAR, which declined by 14.6% to $80.9 million.
Financial Achievements and Industry Impact
Ballys Corp's financial achievements include the completion of strategic transactions with The Queen Casino & Entertainment and Standard General, which are expected to drive long-term growth. The company's expansion and diversification efforts are crucial in the competitive Travel & Leisure industry, providing a broader geographic profile and enhancing its market position.
Key Financial Metrics
For the fourth quarter, Ballys Corp reported consolidated revenue of $580.4 million, down from $611.7 million in the previous year. The Casinos & Resorts segment generated $324.4 million, while International Interactive and North America Interactive segments reported revenues of $214.5 million and $41.5 million, respectively. The company's cash and cash equivalents stood at $171.2 million, with long-term debt net of discount and deferred financing fees at $3.3 billion.
Robeson Reeves, Bally’s Chief Executive Officer, stated, “Fiscal 2024 was a transformational and transitional year for Bally’s as we funded and began development of our permanent Chicago casino resort and completed the controlled demolition of the Tropicana in Las Vegas paving the way for Major League Baseball’s A’s franchise to move to the site.”
Analysis and Outlook
Ballys Corp's performance in 2024 reflects both the challenges and opportunities in the casino entertainment industry. The company's strategic initiatives, including the development of the Chicago casino and the integration of Queen's properties, are expected to bolster its growth prospects. However, ongoing operational challenges and market conditions will require careful management to achieve sustainable growth.
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Explore the complete 8-K earnings release (here) from Ballys Corp for further details.
