On the same day it was selected by Chicago City as its sole casino license winner, Bally’s Corporation announced its financial results for the first quarter of the year and confirmed the rejection of Standard General’s takeover bid. For the period ended March 31, the business delivered $548.3 million in revenue, up from $192.3 million the prior year; and a net income of $1.9 million, up from a $10.7 million loss in Q1 2021.
“Our Casinos & Resorts’ results were strong as the US consumer returned to our properties as US COVID restrictions were lifted,” said Lee Fenton, Chief Executive Officer. The business also delivered Adjusted EBITDA of $115 million for the quarter.
The company’s international interactive operations posted revenue slightly down by 1% year over year, which Fenton attributed to tightened consumer spending in the UK. However, this was offset by solid performance in the company’s Asia business.
“North America Interactive continued to invest in the rollout plan that accelerated this month with the launch of our foundational 2.0 tech stack in Arizona yesterday,” noted the CEO. Additionally, Bally’s Interactive announced late last month Ohio sports betting market access through a multi-faceted partnership with NFL’s AFC North division team Cleveland Browns.
NFL's Cleveland Browns
The Providence, Rhode Island-based company said it had a profit of 3 cents per share. Losses, adjusted for non-recurring gains, were 23 cents per share. The results topped Wall Street expectations, reports Associated Press. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 43 cents per share.
Bally’s simultaneously announced its board of directors determined the company should pursue a cash tender offer for its shares. The tender offer will involve $300 million to $500 million, and will be structured in a Dutch auction format. The commencement of the offer is subject to, among other things, obtaining necessary financing and final approval by Bally’s board.
“The company has very substantial opportunities before it, including the integration of the Gamesys acquisition, the build-out of Bally’s North American interactive business and the continued strategic expansion of our land-based footprint in the U.S.,” said Fenton. “With these opportunities in front of us, we have great confidence in the future as we move forward.”
Bally’s completed its £2 billion ($2.69 billion) merger with British online software development and gaming business Gamesys in October last year. The combined entity is expected to be well-positioned to capitalize on the full range of opportunities available both in the US and abroad, the company said at the time.
“While we are of course disappointed with the outcome of the discussions of our proposal, as we said from the outset, we intend to remain a supportive, long-term investor in the company,” Soo Kim, Standard General’s managing partner and Bally’s Chairman, said after the cash tender offer announcement.
Standard General had made a proposal on January 25 to acquire all of the outstanding shares of Bally’s in a deal that valued the company at about $2.07 billion. At the time of submission Standard General owned over 20% of the business. The new announcement indicates the takeover bid has been rejected.
Bally’s has also reaffirmed its previous guidance, which was provided in February. For the full year, the business anticipates revenue in the range of $2.4 billion to $2.5 billion, and Adjusted EBITDA in the range of $560 million to $580 million. Bally’s currently estimates revenue to be at the lower end of the range primarily due to “the uncertainty of foreign exchange movements.”
Rendering for Bally's Chicago
Also on Thursday, Bally’s announced that the City of Chicago has selected Bally’s Chicago – a $1.7 billion destination casino, entertainment and hotel project – as the preferred bidder in the city’s request for proposal (RFP) process for a casino resort in downtown Chicago.
Located on the 30-acre Chicago Tribune Publishing Center at the intersection of Chicago Avenue and Halstead Street, Bally’s Chicago “will transform this currently underutilized site into a major economic driver for the city,” the company said.
Among other features and amenities, Bally’s Chicago will include 3,400 slots, 170 table games, 10 food and beverage venues, a 500-room hotel tower with rooftop bar, a 3,000 seat / 65,000 square foot entertainment center, a 20,000 square foot exhibition, outdoor music venue, and outdoor green space including an expansive public riverwalk with a water taxi stop.
Original article: https://www.yogonet.com/international/news/2022/05/05/62514-bally-39s-sees-revenue-up-to–548m-in-q1-confirms-standard-general-39s-takeover-bid-rejection
