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Ballys Corp (BALY) Reports Growth Amidst Challenges in Q4 and Full Year 2023 Earnings

GuruFocus Research
·3-min read

  • Consolidated Revenue: Increased to $611.7 million in Q4, up 6.1% year-over-year, and $2.45 billion for the full year, up 8.6%.

  • Segment Performance: Casinos & Resorts segment revenue up 7.2% year-over-year; International Interactive up 2.1%; North America Interactive up 26.9%.

  • Net Loss: Reported a net loss of $(263.5) million in Q4 and $(172.6) million for the full year.

  • Adjusted EBITDAR: Reached $160.9 million in Q4 and $653.1 million for the full year.

  • Capital Return Program: Repurchased 5.8 million shares for $68.6 million in Q4; $95.5 million remains available for future repurchases.

  • 2024 Guidance: Expects full year 2024 revenues between $2.5 billion to $2.7 billion and Adjusted EBITDAR between $655 million to $695 million.

Ballys Corp (NYSE:BALY) released its 8-K filing on February 21, 2024, detailing its financial results for the fourth quarter and the full year ended December 31, 2023. The company, a prominent player in the gaming, hospitality, and entertainment industry, operates a portfolio of casinos and resorts, and online gaming businesses, including iCasino, sportsbook, and free-to-play games. Ballys Corp has three reportable segments: Casinos & Resorts, North America Interactive, and International Interactive.

The company's Q4 consolidated revenues increased by 6.1% year-over-year to $611.7 million, with full-year revenues growing by 8.6% to $2.45 billion. This growth was driven by increases across all business segments, with the Casinos & Resorts segment showing a 7.2% rise in revenue year-over-year. The International Interactive segment's revenue grew by 2.1%, while the North America Interactive segment saw a significant 26.9% increase.

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Despite these revenue increases, Ballys Corp reported a net loss of $(263.5) million in Q4 and $(172.6) million for the full year. However, the company's Adjusted EBITDAR for Q4 was $160.9 million, and $653.1 million for the full year. The Adjusted EBITDAR margins for the Casinos & Resorts segment were solid at 27.7% for the quarter.

During Q4, Ballys Corp repurchased 5.8 million shares of common stock for $68.6 million, demonstrating confidence in its stock value. The company has $95.5 million available for future repurchases under its capital return program. For 2024, Ballys Corp expects to generate revenues in the range of $2.5 billion to $2.7 billion and Adjusted EBITDAR between $655 million to $695 million.

Robeson Reeves, Ballys Chief Executive Officer, highlighted the company's successful year and the strong performance across its portfolio.

Ballys completed a successful 2023 with healthy results across all our business segments,"

said Reeves. He also noted the robustness of the market and the company's disciplined operating strategies.

George Papanier, Ballys President, and Marcus Glover, Ballys Chief Financial Officer, both emphasized the strategic milestones achieved in 2023, including the opening of the Chicago Temporary Casino and the planned closure of Tropicana Las Vegas to prepare for future development.

Ballys Corp (BALY) Reports Growth Amidst Challenges in Q4 and Full Year 2023 Earnings
Ballys Corp (BALY) Reports Growth Amidst Challenges in Q4 and Full Year 2023 Earnings

The company's balance sheet shows $163.2 million in cash and cash equivalents, with long-term debt, net of discount and deferred financing fees, at approximately $3.64 billion. Ballys Corp's cash flow management and capital allocation strategies will be crucial as it navigates the challenges ahead, including the financing of the Chicago Permanent Casino and the impact of the Tropicana Las Vegas closure on year-over-year comparisons.

Value investors may find Ballys Corp's growth in revenues and strategic developments of interest, as the company continues to expand its market share and invest in its properties. The company's focus on operating efficiency and expense reduction, along with its capital return program, may also appeal to investors looking for companies with disciplined financial management.

For a detailed breakdown of Ballys Corp's financials and future outlook, investors are encouraged to review the full 8-K filing.

Explore the complete 8-K earnings release (here) from Ballys Corp for further details.

This article first appeared on GuruFocus.