Robeson Reeves, the inbound CEO of Bally’s Corporation’, has rued the business’ results across its North American interactive division in 2022, labeling the performance as ‘unacceptable’.
Publishing its preliminary report, Bally’s confirmed that the North American Interactive division had a net loss of $428m in 2022, losing over 10 times more than it did in 2021 when net losses were $36.9m.
This came from revenues of $81.7m throughout 2022, which was up 112% year-over-year, but cost increases have resulted in devastating losses for Bally’s.
Recently, the firm unveiled a restructuring plan for the interactive division, which includes laying off 15% of its workforce as well as several other cost-cutting measures to improve its performance.
Reeves commented on the losses: “Simply put, our North America Interactive results in 2022 were unacceptable.
“In response, through our announced restructuring plan of the Interactive business in January, we are taking a deep dive in our approach to North America to ensure that investments we make in sports have a near-term path to profitability. In icasino states, we continue to take share in New Jersey and Ontario as we integrate this business in a scalable way.
“As part of the restructuring, we are evaluating multiple options, including leasing technology structures that integrate quickly and effectively with our world-class icasino and marketing tech stacks. We also expect our restructuring efforts to drive benefits in our International Interactive segment.”
In total, Bally’s recorded revenues of $2.26bn as the casino and resorts division as well as international interactive performed in line with expectations.
The Casino and Resorts division turned over $1.23bn in 2022, up 18.7% YoY and made a net income of $182.6m and adjusted EBITDA profit of $345.6m.
Meanwhile, the International Interactive division saw revenues of $946.4m, up 275.4%. It also recorded a net income of $77.3m and adjusted EBITDA of $321.7m.
2022 highlights in non-interactive divisions have seen the progress of the Chicago flagship casino property, which has received council approval. The temporary location is currently in construction and will contribute to Bally’s from H2 of 2023.
George Papanier, current Bally’s President – Casinos & Resorts, said: “Casinos & Resorts saw continued momentum across the portfolio as we welcomed new spa amenities in Lincoln. Additionally, we broke ground on the temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023. Though it generated an expected loss during a slower fourth quarter, Atlantic City continues to progress and we expect the property to be profitable in 2023.”
However, the North American Interactive division will be the main topic of conversation going into the earnings call and full audited results, set for release on Feb. 23.
So too will be the appointment of Reeves, who will take over from the departing Lee Fenton. Fenton will depart on Mar 31 after spending almost 18 months in the role and having been CEO of Gamesys since 2015.
Reeves added: “As our businesses continue to integrate, we are pleased to achieve record results in both our Casinos & Resorts and International Interactive segments. Our core businesses are generating 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, proving that our initiatives to maintain a competitive advantage in that market are effective.”
