Results

Bally’s Corporation more than triples North American online revenue to $18.1m in Q2

By Conor Mulheir - 5 Aug, 2022

Bally’s Corporation more than tripled its North American Interactive revenue year-on-year to $18.1m in Q2 2022, while its land-based and international operations accounted for the lion’s share of overall group revenue.

The operator generated total revenue of $552.5m during the quarter, more than double the $267.7m generated in Q2 2021 – a period prior to Bally’s £2bn merger with Gamesys Group, which added several international online gambling brands to its portfolio.

Adjusted EBITDA for the quarter totalled $141.2m, a 70.5% increase on the prior-year comparative period, while net income was down 13.7% at $59.5m, compared to $68.9m in Q2 2021.

Despite the encouraging Q2 results, Bally’s has reduced its previous earnings guidance for the full-year 2022. The operator now expects revenue in the range of $2.2bn to $2.3bn, with adjusted EBITDA between $535m and $550m.

The reduction is a result of adverse foreign exchange movements and lower expectations for its Atlantic City property, Bally’s said.

Bally’s CEO Lee Fenton: “Our results reflect continued strength in our Casinos & Resorts segment, record margins in our International Interactive segment and continued growth in our North America Interactive segment, particularly in BallyCasino.com in New Jersey, despite headwinds from significant FX volatility and challenges in Atlantic City.”

While North American Interactive revenue – driven principally by the Bally Bet and Bally Casino online brands – more than tripled year-on-year to $18.1m, international markets accounted for the vast majority of Bally’s online revenue.

The International Interactive segment – consisting of Gamesys gaming brands including Jackpotjoy and Vera & John following the merger in 2021 – generated $234.6m in revenue.

Bally’s CEO Lee Fenton said: “Our second quarter results reflect continued strength in our Casinos & Resorts segment, record margins in our International Interactive segment and continued growth in our North America Interactive segment particularly in BallyCasino.com in New Jersey, despite headwinds from significant FX volatility and challenges in Atlantic City.

“We are pleased with the company’s record cash flow from operations in the quarter and are focused on continued incremental cash flow generation initiatives.”

The operator’s Q2 results brought total revenue for the first half of 2022 to $1.1bn, consisting of $579.8m from its casinos and resorts, $487.6m from the international interactive segment and $33.3m from North American online operations.

Following the end of the quarter, Bally’s went live with its Bally Bet brand in both Ontario and New York, likely to be two of the most lucrative North American markets for online gaming operators in the second half of this year.

A marketing partnership with the New York Yankees, signed earlier this week on 1 August, is likely to help spread the word about Bally Bet to potential customers in both the Empire State and beyond.