Home Economy Economic Activity Bally’s loss in Q2 widens to $60.2M

Bally’s loss in Q2 widens to $60.2M

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PBN Staff

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08/01/2024

BALLY’S CORP. posted a 2024 second-quarter loss of $60.2 million.

PROVIDENCE – Bally’s Corp., which last month accepted a buyout offer from a hedge fund, has posted a second-quarter loss of $60.2 million, an increase from the $25.7 million loss it reported a year ago, as a jump in expenses outstripped its revenue gains. The company, which is based in Providence and operates Rhode Island’s two

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PROVIDENCE – Bally’s Corp., which last month accepted a buyout offer from a hedge fund, has posted a second-quarter loss of $60.2 million, an increase from the $25.7 million loss it reported a year ago, as a jump in expenses outstripped its revenue gains. The company, which is based in Providence and operates Rhode Island's two casinos, reported on Wednesday a loss of $1.24 per diluted share after reporting a loss of 48 cents per share the year prior. The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of $1.47 per share. Revenue totaled $621.7 million, up from $606.2 million – or 2.5% – in the same quarter a year ago but falling short of Wall Street forecasts. Five analysts surveyed by Zacks Investment Firm expected $643 million. At the same time, operating costs and expenses grew from $600.2 million in the second quarter of 2023 to $616.1 million in the most recently completed quarter, or a 2.6% increase. That included a $17.2 million increase in costs and expenses related to gaming operations. In his earnings statement, Bally's CEO Robeson Reeves noted challenges faced in the Rhode Island market, citing the Washington Bridge lane closures on Interstate 195 as continuing to affect traffic to Bally's Twin River Casino in Lincoln. He also cited stiffening competition from across state lines. "We experienced an increase in promotional activity from certain Massachusetts properties which we are managing through," he said. Bally’s on July 25 agreed to accept a buyout offer from hedge fund Standard General L.P. in a deal that values the casino operator at $4.6 billion. Standard General, a New York-based hedge fund operator that already owned a 23% stake in Bally’s, will acquire the remaining shares at $18.25 per share. The price represents a 71% premium over the company’s 30-day volume-weighted average price per share, as of March 8. Soo Kim, managing partner of Standard General, is also chairman of the Bally’s board of directors. Standard General will merge Bally’s into the regional casino chain, The Queen Casino & Entertainment Inc. – a Standard General affiliate – when the deal closes which is expected in the first half of 2025. “Bally’s delivered solid 2024 second-quarter operating results during what remains an active period for our company,” Reeves said. “The combination of [The Queen Casino & Entertainment Inc.] development pipeline also to our own growth pipeline provides the company with a clear path toward additional revenue, cash flow growth and value accretion.” Bally’s expects full-year revenue in the range of $2.5 billion to $2.7 billion. Material from The Associated Press was used in this report.