Following the publication of preliminary financial results for the fourth quarter and full year of 2022, Bally’s Corp. has now announced its definitive report for the periods. The business posted revenue of $576.7 million and $2.3 billion, respectively, with the figure for the whole year slightly up from the $2.25 billion previously announced earlier this month.
Net losses for the fourth quarter ($487.5 million) and the entire year ($425.5 million) were wider than in the previous report, which indicated $476.8 million and $414.8 million respectively. While revenue in the fourth quarter increased by almost $30 million from Q4 2021, the net loss for the three-month period widened by more than 300%.
The widened net loss is primarily attributed to a $390 million-plus non-cash charge related to the company’s North American online operations, as part of an annual goodwill and asset impairment analysis. The net loss would be primarily driven by the Bally’s Bet.Works and Monkey Knife Fight acquisitions, which had been re-evaluated to be worth less than they were considered at the period of purchase.
The company further added that it had recorded a $73 million-plus impairment on a brand in its international interactive segment, which was related to its acquisition of Gamesys that was to be de-emphasized going forward. Despite the widened losses for the quarter and the entire year, management focused on the positive developments of 2022.
Robeson Reeves, current Bally’s President – Interactive, and incoming Chief Executive Officer, said: “We are pleased to have achieved record results in both our Casinos & Resorts and International Interactive segments. Our core businesses continue to generate fantastic cash flows.”
UK revenue grew 12% organically in the fourth quarter as regulations continue to play through, while in December, Asia saw positive year-over-year organic growth, which Reeves said proves Bally’s initiatives to maintain a competitive advantage in that market are effective.
“We remain committed to taking a deep dive approach in North America to ensure that investments we make in sports have a near-term path to profitability. In iCasino states, we’ve increased our market share in both New Jersey and Ontario as we integrate this business in a scalable way,” he added.
George Papanier, current Bally’s President – Casinos & Resorts and incoming Bally’s President, added: “As previously noted, Casinos & Resorts saw continued momentum across the portfolio during the fourth quarter. We also broke ground on our temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023.”
George Papanier
Though Atlantic City generated a loss during Q4, Papanier said the company’s casino there continues to progress, and officials expect the property to be profitable in 2023. Significant capital expenditures toward property improvements will decrease in 2023 as the company focuses on generating cash flows to invest in long-term growth opportunities for the entire portfolio.
“Finally, business momentum continues to be strong into 2023, with no slowdown in the consumer, as we continue to closely monitor market macro dynamics,” added Papanier.
In its updated report, Bally’s reaffirmed the guidance it provided on February 13, and estimates revenue in the range of $2.5 billion to $2.6 billion and Adjusted EBITDAR in the range of $660 million to $700 million for 2023. This includes approximately $124 million of rent expense (cash rent of $119 million) and a range of $40 million to $50 million of Adjusted EBITDA losses in North America Interactive.
In announcing the preliminary results earlier this month, management said the North America Interactive results in 2022 were “unacceptable.” In response, through a previously announced restructuring plan of the Interactive business in January, Bally’s is now “taking a deep dive” into its approach to North America to ensure that investments made in sports have “a near-term path to profitability.”
Original article: https://www.yogonet.com/international/news/2023/02/24/66220-bally-39s-sees-loses-widen-revenue-up-in-updated-2022-report-guidance-for-current-year-reaffirmed
