Home Economy Economic Activity Bally’s reports $173.9M loss in Q1, says Washington Bridge affected earnings

Bally’s reports $173.9M loss in Q1, says Washington Bridge affected earnings

Updated at 11:40 a.m.

By

PBN Staff

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05/02/2024

DEALERS PREPARE for the start of iGaming in a new 4,000-square-foot studio at Bally's Twin River Lincoln casino in March. The company’s North America interactive revenue, which includes iGaming in Rhode Island, was $41.5 million in the first quarter of 2024, up more than 70% from the year prior. / COURTESY BALLY'S CORP.

PROVIDENCE – Bally’s Corp. on Wednesday reported a $173.9 million loss in the first quarter, compared with a $178.3 million profit in the same period a year ago, a result boosted by $374 million in gains from the sale and lease back of certain Bally’s properties last year. The company, which owns the state’s two casinos, Bally’s

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PROVIDENCE – Bally’s Corp. on Wednesday reported a $173.9 million loss in the first quarter, compared with a $178.3 million profit in the same period a year ago, a result boosted by $374 million in gains from the sale and lease back of certain Bally's properties last year. The company, which owns the state’s two casinos, Bally’s Twin River Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel, posted $618.4 million in revenue for the quarter, up 3.3% from $598.7 million a year ago. Bally's said earnings were affected by several factors, including "construction to the Providence bridge in Rhode Island [that] impacted access to our largest casinos and resorts profit center at Twin River." Bally's spokesman James Leahy later clarified that the bridge construction was a reference to the partial closure of the Washington Bridge and traffic jams along Interstate 195. No further details about the financial impact were given. The company does not report financial results for individual properties. The first quarter loss was $3.61 per diluted share compared to a profit of $3.24 per diluted share in the first quarter of 2023. The first quarter of 2024 included no gains from the sale and lease back of properties as it had the previous year. The results missed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of $1.13 per share. The first quarter loss comes as Bally's mulls over a takeover bid from hedge fund Standard General, which already holds a 26.4% stake in the company. Standard General offered a buyout deal valued at $1.7 billion in 2022, which was rejected. Now the fund is offering a deal worth $684 million. Last month, three major credit rating agencies downgraded Bally's Corp.'s financial outlook into junk bond territory. Still, the company's top executive sounded an optimistic note in the earnings release Thursday. “Bally’s is off to a solid start in 2024, driven by revenue growth in our Casinos & Resorts and North America Interactive segments,” Bally’s CEO Robeson Reeves said. “Casinos & Resorts revenues rose 4.1% year-over-year inclusive of the contribution from the Chicago temporary casino and the winding down of the Tropicana Las Vegas." The company closed the Tropicana in Las Vegas to make way for a new stadium for the Oakland A’s to be ready for the 2028 season. The company’s North America interactive revenue, which includes iGaming, was $41.5 million, up 70.2% from the year prior. Reeves said its iGaming operations in New Jersey and Pennsylvania are gaining market share. And in Rhode Island, Reeves said, Bally's became the sole provider of iGaming when it launched in March and revenue has "ramped nicely through April." "We believe this momentum will continue to build through the balance of 2024," he added. Bally's expects full-year revenue in the range of $2.5 billion to $2.7 billion. Bally's shares have declined roughly 6% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $13.16, a fall of 25% in the last 12 months. (SUBS 4th paragraph to identify spokesman and note company does not report financial results for individual properties.) Material from The Associated Press was used in this report.