Bally's Corp (BALY)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue declined 5.1% year over year to $580.4M, with Casinos & Resorts down 5.2% and International Interactive down 9.1%; U.K. online grew 11.3% while North America Interactive rose 24.4% . The company canceled its scheduled Q4 earnings call on March 5, 2025, removing a typical forum for guidance and Q&A .
• FY 2024 revenue was $2.450B vs the prior FY24 guidance range of $2.5–$2.7B set in Q2 2024, implying an under-shoot versus earlier expectations .
• Segment profitability mixed: C&R Segment Adjusted EBITDAR fell 14.6% YoY to $80.9M; International Interactive Adjusted EBITDAR was $81.6M (down 12.4% YoY); North America Interactive posted a $(12.3)M Adjusted EBITDAR loss, pressured by a unified platform transition that management expects to reverse in Q1 .
• Strategic catalysts: permanent Chicago casino construction has broken ground; Tropicana demolition complete; transactions with Standard General and Queen closed in early 2025, with Queen’s properties generating Q4 2024 revenue of $57.6M (not in BALY Q4 results) .

What Went Well and What Went Wrong

• What Went Well

  • U.K. online momentum: U.K. revenue grew 11.3% YoY (7.9% cc), driven by strong retention and optimization initiatives; International Interactive revenue ex-divested markets and licensing grew 12.9% YoY, highlighting underlying European strength .
  • North America Interactive topline: segment revenue up 24.4% YoY; Rhode Island iGaming ramp and NJ Monopoly Casino app saw healthy responses; Bally Bet launched in Tennessee .
  • Strategic progress: Chicago permanent casino groundbreaking; Tropicana site cleared; integration of Queen assets to add scale and geographic diversification. CEO: “Bally’s 2.0 is a dynamic global land-based and online casino operator with attractive growth pipelines…” .

• What Went Wrong

  • C&R profitability pressure: Segment Adjusted EBITDAR declined 14.6% YoY to $80.9M due to higher costs and lower flow-through, exacerbated by revenue decline .
  • Property-specific headwinds persisted: Chicago Temporary below expectations; Rhode Island visitation challenged by bridge construction; Atlantic City impacted by relationship marketing turnover (management says largely addressed) .
  • International Interactive margin compression: Adjusted EBITDAR margins fell 145 bps YoY; segment EBITDAR declined 12.4% YoY to $81.6M, partly due to non-U.K. weakness and business model shift to licensing in Asia/other markets .

Financial Results

Revenue and EPS vs prior periods and (if available) vs estimates

Segment revenue and Segment Adjusted EBITDAR

Selected KPIs and balance sheet/cash flow

Notes:

• Q4 revenue declined 5.1% YoY; U.K. online +11.3% YoY within International Interactive; North America Interactive +24.4% YoY .
• International Interactive margin commentary: Adjusted EBITDAR margin declined 145 bps YoY .

Guidance Changes

Management did not issue new formal guidance in the Q4 materials; the Q4 earnings call was canceled .

Earnings Call Themes & Trends

No Q4 2024 call; table tracks narrative evolution using Q2 and Q3 disclosures and Q4 press release.

Management Commentary

• CEO (Robeson Reeves): “Fiscal 2024 was a transformational and transitional year… [Bally’s 2.0] is a dynamic global land-based and online casino operator with attractive growth pipelines in U.S. gaming.”
• CEO on International Interactive: “U.K. revenue grew a healthy 11.3% (7.9% in constant currency)… Excluding revenue recognized from divested markets and licensing revenue recognized, International Interactive revenue grew 12.9% versus the prior year quarter” .
• President (George Papanier): “We received final approval… for our re-imagined permanent Bally’s Chicago Casino… completed demolition and began construction… Queen portfolio… provides our C&R segment with a nice tailwind for the foreseeable future.” .
• CFO (Marcus Glover): “Our team is working diligently… to optimize our cost structure, enhance the efficiency of our operations… Bally’s 2.0 is very well positioned to deliver enhanced value” .
• Disclosure: “Bally’s has cancelled its fourth quarter 2024 earnings call…” .

Q&A Highlights

• The company canceled its Q4 2024 earnings call; no Q&A session or guidance clarifications were provided .

Estimates Context

• We attempted to retrieve S&P Global consensus for Q4 2024 revenue and EPS, but data access was unavailable due to an S&P Global request limit. As a result, we cannot compare Q4 results to consensus or quantify beats/misses at this time (no substitute source used) [GetEstimates error].
• Note: FY 2024 revenue of $2.450B came in below the company’s earlier FY24 revenue guidance range of $2.5–$2.7B set in Q2 2024, implying underperformance versus prior company expectations rather than versus Street estimates .
• Values retrieved from S&P Global: unavailable due to access constraints.

Key Takeaways for Investors

• Q4 2024 topline softness and C&R margin pressure: Revenue $580.4M (-5.1% YoY) with C&R Segment Adjusted EBITDAR down 14.6% YoY highlights ongoing property-level headwinds (RI access, AC marketing turnover) despite pockets of strength (KC) .
• International Interactive resilient ex-divestitures: U.K. +11.3% YoY and ex-divested/licensing growth +12.9% YoY show core regulated European momentum even as margins compressed 145 bps YoY .
• North America Interactive remains a strategic investment: Q4 revenue +24.4% YoY; platform unification drove a temporary EBITDAR drag expected to reverse in Q1; new product launches (Monopoly Casino NJ; Bally Bet TN) broaden the funnel .
• FY24 revenue below prior company guidance: $2.450B vs $2.5–$2.7B prior range; no new guidance was issued and the Q4 call was canceled, limiting near-term visibility .
• Strategic catalysts intact: Chicago construction has begun; Tropicana site prepared for A’s stadium; Standard General/Queen transaction closed, adding four properties and broader geographic diversification for C&R .
• Balance sheet/liquidity actions: Completed Kansas City/Shreveport sale-leaseback ($395M), with proceeds used to pay down revolver and for capex/general purposes; initial cash rent on the new master lease is $32.2M annually .
• Focus near term: watch for stabilization at Chicago Temporary, normalization of RI traffic as infrastructure issues abate, confirmation of North America Interactive EBITDAR improvement post-platform transition, and tangible Chicago milestone updates .

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Appendix: Additional Details

• Q4 2024 Segment Notes

  • C&R revenue $324.4M (-5.2% YoY) with Segment Adjusted EBITDAR $80.9M (-14.6% YoY) amid cost/flow-through pressure and localized headwinds (RI, AC); KC high-limit room opening was a positive offset .
  • International Interactive revenue $214.5M (-9.1% YoY); U.K. +11.3% YoY; segment Adjusted EBITDAR $81.6M (-12.4% YoY); margin -145 bps YoY; Asia/other distribution operations divested and shifted to licensing .
  • North America Interactive revenue $41.5M (+24.4% YoY); Adjusted EBITDAR $(12.3)M; platform transition weighed but expected to reverse in Q1; RI ramp; Monopoly Casino (NJ) launch; Bally Bet (TN) launch .

• FY 2024 Highlights

  • Consolidated revenue $2.450B vs $2.449B in FY 2023; segment revenues: C&R $1.363B; International $909.5M; North America Interactive $177.9M .
  • Selected balance sheet: cash $171.2M; long-term debt including current portion $3,318.8M as of Dec 31, 2024 .
  • Cash flow: capex $44.1M in Q4; $199.8M in FY 2024; lease payments $36.9M in Q4; $127.6M in FY 2024 .

Sources: Company 8-K and press releases for Q4 2024 and prior quarters, and transaction announcements .