Bally’s Reports €425.5m Net Loss in 2022
Author:
Muhammad Gregory
Casino and sportsbook giant Bally’s Corporation reported a net loss of $425.5 million it experienced during its 2022 financial year. The loss can be attributed to impairment charges, and the operator was still able to reveal a 70.7% increase in overall revenue. The operator warned it might see a large net loss during the period.
Bally’s Corporation has reported a net loss of $425.5 million during its 2022 financial year, which it says is mainly attributed to impairment charges.?Michelle_Maria/Pixabay
Final Net Loss for Bally’s Was Slightly Higher than Preliminary Indication
The major casino and sportsbook operator, Bally’s Corporation, has recently stepped out and posted a net loss of $425.5 million it experienced during its 2022 financial year. Such a loss was chiefly due to impairment charges. The operator was nevertheless able to report a 70.7% increase in overall revenue.
Bally’s pre-empted the slightly concerning news by revealing in its preliminary results that it was somewhat probable it would experience a large net loss for the 12 months to December 31st, 2022 due to racking up impairment charges. The biggest culprit here was a $390.7 million charge connected to its North America interactive business in the fourth quarter of the year.
Worth noting is that the financial year’s net loss in the end was slightly above than that which was hinted at in Bally’s preliminary guidance. The company’s soon to be chief executive and current president of interactive, Robeson Reeves, remained optimistic about the operator’s overall performance in 2022.
Bally’s Still Saw Record Results in Casinos and Resorts; International Markets
In a shared statement, Reeves chose to highlight record performances by Bally’s Corporation’s casinos and resorts, as well as its international interactive segments, which he believes sets up the operator for yet more growth in the near future:
“As previously reported in our preliminary release of these financial results, we are pleased to have achieved record results in both our casinos and resorts and international interactive segments. Our core businesses continue to generate 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.”– Robseon Reeves, Incoming Chief Executive Officer (CEO), Bally’s Corporation,Press Release
Reeves capped off his statement by taking a moment to remind observers about the operator’s continued forays into the iGaming/online casino market:
“We remain committed to taking a deep dive approach in North America to ensure that investments we make in sports have a near-term path to profitability. In icasino states, we’ve increased our market share in both New Jersey and Ontario as we integrate this business in a scalable way.”
Finally, George Papanier, who is the current President of Bally’s Casinos & Resorts, as well as the incoming Bally’s President, paid homage to the company breaking ground and its upcoming mega Bally’s Chicago complex:
“As previously noted, Casinos & Resorts saw continued momentum across the portfolio during the fourth quarter. We also broke ground on our temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023. Though Atlantic City generated a loss during a slower fourth quarter, it continues to progress, and we expect the property to be profitable in 2023. Significant capital expenditures toward property improvements will decrease in 2023 as we focus on generating cash flows to invest in long-term growth opportunities for the entire Bally’s portfolio. Finally, business momentum continues to be strong into 2023, with no slowdown in the consumer, as we continue to closely monitor market macro dynamics.”– George Papanier, President, Bally’s Casinos & Resorts,Press Release
Casino Giant Appointed New CEO in February 2023
As previously mentioned, Bally’s has a new CEO on the way, with the company’s president of interactive, Robeson Reeves, taking over from current CEO Lee Fenton who is set to step down soon. Reeves is expected to kick off his tenure as the casino giant’s new chief executive on March 31st, 2023.
Reeves first joined Gamesys all the way back in 2005 and has acted in leadership positions within Bally’s ever since, including stints as COO and director of gaming operations. Current CEO Lee Fenton’s imminent departure also means that he will be leaving the company’s board of directors. This move will also become valid as of March 31st, 2023.
As part of his departing statements, Fenton reminisced on the special nature of working at such a reputable company as Bally’s:
“Bally’s is an extraordinary business with extraordinary people, and I want to thank each and every one of them for the support they have shown me and the commitment they continue to bring to the business. It is particularly special for me to be able to hand the reigns to Robeson with whom I have worked for over 14 years. Robeson is a unique talent and the time is right for him to lead Bally’s.”– Lee Fenton, Outgoing Chief Executive Officer (CEO), Bally’s Corporation,Press Release
Bally’s Finalized Agreement with IUOE Back in December 2022
In December 2022, Bally’s Corporation entered into a labor neutrality agreement with the International Union of Operating Engineers (IUOE), after much deliberation and many negotiations.
The IUOE is the 10th largest union within the AFL-CIO conglomerate, counting over 400,000 active members among its rank and file network. The agreement between the two is predicated upon both parties agreeing to adopt a neutral approach when it comes to labor organizing campaigns.
Jose Soto, Organizing Director of the International Union of Operating Engineers (IUOE) Local 501, hailed Bally’s commitment towards organized labor:
“Bally’s and IUOE are aligned in our efforts to advance employee representation locally and at the national level. As a result of the commitment and integrity demonstrated by Mr. Kim and his team, we’ve developed a strong relationship with Bally’s that we are confident will benefit the company’s workforce for many years to come.”
