Ballys Corporation exceeded expectations in the second quarter of 2022, more than doubling their earnings compared to the same timeframe the previous year. They achieved an impressive $5.525 billion, a significant increase from $2.267 billion the year prior. This exceptional outcome positioned them as a leader in the sector, surpassing their rivals. For instance, Caesars Entertainment only experienced an 11% rise in earnings, MGM Resorts witnessed a 44% surge, and Penn Entertainment saw a modest 5% uptick. Boyd Gaming remained virtually stagnant with a negligible 0.1% growth.
Although their earnings soared, Bally’s net profit for the quarter reached $59.5 million, reflecting a 10.8% profit margin. This figure was slightly lower than the preceding year when they generated $68.9 million, representing a 25.8% profit margin. Nevertheless, their adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) presented a different picture. This crucial profitability indicator climbed to $1.412 billion, a 25.6% margin, in contrast to $828 million and a 30.9% margin during the corresponding period last year.
Chief Executive Officer Lee Fenton attributed this triumph to various elements. Their gambling establishments and resorts sustained strong cash flow, while their global interactive segment reached unprecedented profitability. The North American interactive sector, specifically BallyCasino.com in New Jersey, also demonstrated robust expansion. All of this transpired despite certain obstacles, including substantial currency volatility and difficulties in the Atlantic City market. Fenton highlighted the company’s contentment with their record-setting operating cash flow for the quarter and their dedication to strategies that will maintain this positive cash flow.
Furthermore, Bally’s successfully finalized its modified “Dutch auction” tender offer in July. This enabled them to repurchase 4.7 million shares of common stock at $22.00 per share, totaling $1.033 billion.
Ballys has secured a significant advertising agreement with the iconic New York Yankees, solidifying their position as the team’s authorized sports wagering collaborator.
This alliance represents a substantial victory for Bally’s, signifying their inaugural association with a New York sports franchise. As a comparatively recent entrant to the state’s market, having debuted their digital sports betting platform in July 2022 as the ninth operator, this partnership holds immense weight.
admin