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Bally's Corp (BALY)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $589.2M, down 4.7% year over year; Casinos & Resorts rose 2.6% to $351.2M, while International Interactive fell 18.3% to $191.7M due to 2024 Asia divestiture; North America Interactive grew 12.5% to $44.5M .
  • Pro forma combined revenue declined to $611.1M vs $674.7M in Q1 2024; Casinos & Resorts Adjusted EBITDAR rose 6.3% to $95.1M, while International Interactive Adjusted EBITDAR fell 7.7% to $77.1M; North America Interactive remained loss-making at -$6.6M .
  • Versus S&P Global consensus: revenue was a slight miss ($589.2M vs $594.5M*), EBITDA missed ($80.7M* vs $99.2M*), but Primary EPS was a significant beat (+$1.47* vs -$0.68*)—reflecting non-GAAP/normalized EPS dynamics post merger and purchase accounting; the company did not disclose EPS in the release .
  • Liquidity and leverage: cash was $209.7M and net long-term debt $3.43B at quarter-end; a new $500M 11% senior secured note and swaps hedged interest rate/currency exposures; $135M was drawn on the revolver .
  • No earnings call was held (second consecutive quarter), limiting real-time Q&A; stock reaction the day of the release was roughly flat to slightly down intraday per media tracking .

What Went Well and What Went Wrong

What Went Well

  • Casinos & Resorts segment delivered 2.6% revenue growth and Adjusted EBITDAR up 6.3% to $95.1M, aided by Queen asset additions and operational initiatives to drive efficiencies and margins .
  • U.K. online continued strength: U.K. revenue +4.9% (+5.6% cc), with robust player retention/monetization and Spain growth after easing of ad restrictions, supporting International Interactive ex-divested markets growth of 7.7% YoY .
  • Strategic portfolio actions and integration: completion of Standard General/Queen transactions expanded domestic scale; ongoing construction of the permanent Chicago casino with GLPI support; announced AUD $200M commitment to Star (partly funded in April) to potentially own ~38% post conversion .

Quotes

  • “These initiatives are focused on driving operating efficiencies, profitable top line growth and improving operating margins…” — CEO Robeson Reeves .
  • “We continue to see relative stability across our C&R operations.” — CEO Robeson Reeves .
  • “International Interactive revenue demonstrated continued strength in our U.K. operations.” — CEO Robeson Reeves .

What Went Wrong

  • International Interactive reported -18.3% YoY revenue due to Asia business divestiture; segment Adjusted EBITDAR declined 7.7% to $77.1M .
  • North America Interactive remained loss-making at -$6.6M Adjusted EBITDAR; while revenue grew, profitability lagged given platform, marketing, and scaling dynamics .
  • Weather and competitive supply impacted regional markets; RI traffic disruptions and Chicago temporary fine-tuning; Atlantic City required leadership changes to improve performance .

Financial Results

Company-Level Performance vs Prior Periods

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$630.0 $580.4 $589.2
EBITDA ($USD Millions)$137.7*$40.5*$80.7*
EBITDA Margin (%)21.9%*7.0%*13.7%*
Diluted EPS - Continuing Ops ($)$(5.10) $(1.76)*$(0.30)*

Values with asterisk (*) retrieved from S&P Global.

Notes

  • Sequential revenue improved vs Q4 2024 (+1.5%), but remained below Q3 levels; margins rebounded from Q4 lows as operations normalized and Queen assets contributed .
  • EPS data in the press release was not disclosed; S&P Global fundamentals indicate GAAP diluted EPS still negative, reflecting merger accounting and financing costs .

Q1 2025 Actuals vs S&P Global Consensus

MetricConsensusActualOutcome
Revenue ($USD Millions)$594.5*$589.2 Miss
EBITDA ($USD Millions)$99.2*$80.7*Miss
Primary EPS ($)$(0.68)*$1.47*Beat

Values with asterisk (*) retrieved from S&P Global.

Interpretation

  • Slight top-line miss and EBITDA shortfall reflect softer International Interactive due to portfolio changes and regional headwinds; the large EPS “beat” aligns with Primary/normalized EPS mechanics post predecessor/successor accounting and may not reflect GAAP EPS trajectory .

Segment Breakdown (Pro Forma Combined)

SegmentQ1 2024 Pro Forma Revenue ($M)Q1 2025 Pro Forma Revenue ($M)Q1 2024 Pro Forma Adj. EBITDAR ($M)Q1 2025 Pro Forma Adj. EBITDAR ($M)
Casinos & Resorts$393.4 $371.0 $107.0 $100.6
International Interactive$234.7 $191.7 $83.5 $77.1
North America Interactive$44.8 $46.5 $(5.24) $(6.59)
Corporate & Other$1.9 $1.8 $(18.7) $(17.8)
Total$674.7 $611.1 ——

KPIs and Balance Sheet/Cash Flow

KPIDec 31, 2024Mar 31, 2025
Cash and Cash Equivalents ($M)$171.2 $209.7
Revolving Credit Facility Drawn ($M)$0.0 $135.0
Long-term Debt, Net ($M)$3,299.3 $3,430.7
Capital Expenditures ($M)$44.1 (Q4) $30.5 (Succ.) / $16.4 (Pred.) (Q1)
Cash Paid for Capitalized Software ($M)$8.7 (Q4) $10.6 (Succ.) / $2.3 (Pred.) (Q1)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated RevenueFY/Q1 2025None providedNone providedMaintained (no formal guidance)
Segment Metrics (C&R, International, NA Interactive)FY/Q1 2025None providedNone providedMaintained (no formal guidance)
Margins/OpEx/OI&E/TaxFY/Q1 2025None providedNone providedMaintained (no formal guidance)
Capital Projects (Chicago permanent casino)FY 2025-2026Ongoing constructionConstruction continues with GLPI supportMaintained
Strategic Investments (Star Entertainment Group)2025AUD $300M plannedAUD $200M commitment after co-investor; AUD $67M funded in AprilLowered commitment

Notes: Company reiterates non-GAAP policy that it does not reconcile forward-looking Adjusted EBITDAR due to inability to forecast certain items .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript is available; media and company notices indicate no call was held (also cancelled for Q4 2024) .

TopicQ-2 (Q3 2024)Q-1 (Q4 2024)Current (Q1 2025)Trend
Chicago permanent casinoSecured $940M GLPI financing; demolition underway Ground broken; demolition complete; construction start Construction continues with GLPI support Improving execution
U.K. online performance+11.8% YoY; strong ARPU/retention +11.3% YoY; strong retention; margin compression +4.9% YoY (+5.6% cc); strong retention/monetization Stable to positive
Asia/International portfolio actionsLogistical challenges; early deconsolidation plans Divestiture completed; move to licensing revenue; ex-divested growth +12.9% YoY revenue -18.3% on divestiture; ex-divested +7.7% Portfolio refocus; ex-divested growth positive
Regional market headwindsRI bridge, AC relationship marketing turnover; KC hold RI visitation challenge; AC impact persists; temporary Chicago below expectations Weather/supply headwinds; RI traffic mitigated via marketing; AC leadership changes Mixed, mitigation underway
NA Interactive platform/productScaling iGaming/OSB; RI ramp Platform transition headwind; loss widened Live in NJ/PA/RI/ON; BallyBet in 11 states; revenue +12.5% Revenue growth; profitability lagging
Capital structure and hedgingLeases/GLPI arrangements; swaps Continued swaps and interest rate risk management Additional swaps; new 11% senior secured notes; revolver draw Proactive risk management

Management Commentary

  • “The team has overcome some traffic impacts in Rhode Island through marketing interventions… we expect improvements in Atlantic City based on recent leadership changes.” — CEO Robeson Reeves .
  • “International Interactive revenue demonstrated continued strength in our U.K. operations… Excluding revenue from the divested markets and licensing revenue recognized, International Interactive revenue grew 7.7% year over year.” — CEO Robeson Reeves .
  • “Bally’s AUD $200 million investment [in Star]… upon conversion, could result in Bally’s owning approximately 38% of Star.” — CEO Robeson Reeves .
  • Segment recast to align with strategic growth initiatives and decision-making; prior periods reclassified for comparability .

Q&A Highlights

  • No Q&A; the company did not hold an earnings call for Q1 2025 (and cancelled Q4 2024 call), limiting real-time guidance clarifications and tone assessment .

Estimates Context

  • Revenue modestly missed S&P Global consensus ($589.2M vs $594.5M*). EBITDA missed ($80.7M* vs $99.2M*). Primary EPS showed a large beat (+$1.47* vs -$0.68*), likely reflecting normalized EPS treatment amid predecessor/successor accounting and non-GAAP adjustments post-merger; GAAP diluted EPS remained negative per S&P fundamentals, and the company did not disclose EPS in its release .
    Values with asterisk (*) retrieved from S&P Global.

Where estimates may adjust

  • Expect modest downward revisions to EBITDA and potentially revenue for near term given International Interactive reset and NA Interactive profitability lag; EPS models may diverge (normalized vs GAAP) until post-merger purchase accounting items and financing costs stabilize .

Key Takeaways for Investors

  • Integration of Queen assets is boosting C&R scale and Adjusted EBITDAR, but regional headwinds (weather, RI traffic, AC stabilization) temper flow-through; operating initiatives should support margins in 2025 .
  • International Interactive is undergoing portfolio quality upgrade—ex-divested growth and U.K. resilience support margins—but headline revenue declines persist due to Asia divestiture .
  • NA Interactive revenue growth continues with iGaming and BallyBet presence in 11 states; profitability remains the key unlock as platform/product optimization proceeds .
  • Chicago permanent casino is a core medium-term catalyst; GLPI partnership and construction progress de-risk execution; temporary facility continues database building .
  • Balance sheet: increased leverage post transactions and notes issuance; revolver draw and hedging reduce rate/currency risk; cash improved QoQ—focus on disciplined capital allocation and project ROI .
  • The lack of an earnings call limits immediate guidance clarity and narrative control; near-term stock moves may anchor to press release metrics and media interpretations rather than management’s live tone .
  • Strategic investment in Star offers optionality for value creation but requires approvals and execution discipline; reduced commitment to AUD $200M mitigates funding risk .

Values with asterisk (*) retrieved from S&P Global.