Jeffrey Stantial's questions to Bally's Corp (BALY) leadership • Q1 2024
Question
Jeffrey Stantial from Stifel questioned the margin impact from weather on the Casinos and Resorts segment and the cost outlook for 2024. He also asked about the cost-side drivers for the projected improvement in North America Interactive's performance.
Answer
President George Papanier detailed the weather's impact, noting January margins dropped to 24% from 30% year-over-year, with union wage increases being the primary other headwind. CFO Marcus Glover added that low hold also modestly impacted Q1. For North America Interactive, Glover cited rightsized labor, the shift of retail sports betting into the segment, and significant revenue gains as drivers of improvement. CEO Robeson Reeves confirmed that duplicative tech costs still exist but will be eliminated by year-end, simplifying operations.