TLDR
- Bally’s second quarter revenue grew 20% to $792.2 million
- The company says it needs new financing to meet liquidity and debt requirements
- Bally’s included a going concern warning in its latest filing
- Cash on hand fell from $906.7 million to $487.8 million over six months
- Casino projects in Chicago, New York and Las Vegas are adding to financing pressure
Bally’s Corporation reported revenue growth in the second quarter. At the same time, the company warned it may not meet its liquidity and debt requirements without new financing.
Revenue for the three months ended June 30 came in at $792.2 million. That is a 20% increase from the same period last year.
This marks the second straight quarter Bally’s filed its earnings late. The company also skipped holding an earnings call.
In the filing, management said Bally’s needs new financing to stay within the terms of its revolving credit facility. Without it, the company expects to fall short of required liquidity levels within the next 12 months.
Bally’s said it is exploring several options to raise money. These include selling assets, issuing equity and taking on new debt.
The company also signed a non-binding term sheet in July for a loan tied to its Bronx casino project. It cautioned that the financing may not close.
This comes after Bally’s completed refinancing steps earlier this year. That included opening a new $1.1 billion credit facility and repaying a $1.47 billion term loan.
Bally’s stock fell from $13.99 to $12.85 within a half hour of the earnings release on Friday.
Cash Use Raises Concerns
Bally’s used $265.9 million in operating cash during the first six months of the year. That compares to $21.4 million during the same period last year.
The company pointed to $98.9 million in upfront license fees, larger net losses and changes in working capital as reasons for the increase.
Cash and restricted cash dropped from $906.7 million at the start of the year to $487.8 million by the end of June.
That drop led Bally’s to include a going concern warning in its financial statements. Management said the risk of breaching credit terms raises doubt about its ability to continue operating without more funding.
Bally’s has already sold real estate to raise cash. In February, it sold the Twin River property to Gaming and Leisure Properties for $700 million.
Revenue Growth Details
Casinos and Resorts revenue rose 2% to $401 million. North America Interactive revenue increased nearly 17% to $66.1 million.
Bally’s Intralot B2C revenue grew over 22% to $243.5 million. In the U.K., revenue rose 11.6% at constant currency despite higher gaming taxes.
Total segment Adjusted EBITDAR rose to $187.5 million from $173.2 million. Consolidated Adjusted EBITDA slipped slightly to $124 million from $129.2 million.
Bally’s reported a net loss of $146.1 million, compared to a $228.4 million loss a year earlier.
The company continues major development projects in Chicago, the Bronx and Las Vegas. About $400 million remains under its spending commitment for the Chicago casino.
Chicago alderpersons recently urged the mayor to push Bally’s to resume full construction there. The company has denied that financial pressure caused any slowdown.
In the Bronx, Bally’s has already paid a $500 million license fee. The $4 billion resort is expected to open by 2030.
In Las Vegas, work continues near the former Tropicana site next to the Athletics’ new ballpark. Bally’s says it is in advanced talks with partners on a nearby retail and entertainment complex.
