Bally’s Q2 revenue doubles as casino and international growth offsets US headwinds
Bally Bet operator reports record international revenue but US interactive arm slumps with $17m adjusted EBITDA loss
Bally’s has reported a 106% year on year (YoY) increase in revenue for the second quarter of 2022, with the firm generating revenue of £552.4m.
Releasing its financial update for the quarter, Bally’s reported a 70% rise in its adjusted EBITDA which rose to $141.2m, corresponding to an adjusted EBITDA margin of 25.6%.
Net income fell by just under 14% YoY to $59.5m, creating a net income margin of 10.8%.
Bally’s regional casino and resorts-based business made the biggest contribution to the financials during Q2, generating revenue of $299.8m, and an adjusted EBITDA figure of $88m.
International interactive, which includes the former Gamesys Group business, also had a strong quarter, generating revenue of $234.5m and adjusted EBITDA $82.6m.
In contrast, Bally’s US interactive business, which encompasses Bally Bet, Monkey Knife Fight and Bally’s other US online businesses generated just $18m in Q2 revenue, with an adjusted EBITDA loss of $16.9m.
Bally’s ‘other’ business area generated no revenue during the second quarter and reported an adjusted EBITDA loss of $12m.
Bally’s CEO, Lee Fenton, welcomed the positive results during Q2, highlighting the contributions made by Bally’s operational divisions, contributions which offset pressures in the US.
“Our second quarter results reflect continued strength in our casinos and resorts segment, record margins in our International Interactive segment and continued growth in our North America Interactive segment particularly in BallyCasino.com in New Jersey, despite headwinds from significant FX volatility and challenges in Atlantic City.
“We are pleased with the company’s record cash flow from operations in the quarter and are focused on continued incremental cash flow generation initiatives,” he added.
In line with certain economic factors, Bally’s has changed its 2022 revenue guidance to reflect a figure of between $2.2bn and $2.3bn, as well as an adjusted EBITDA in the range of $535m to $550m reflecting its Q2 and H1 results.
The operator flagged adverse foreign exchange movements arising from the global economic downturn and lower expectations for its Atlantic City property as reasons for the revision.