Bally’s Corporation reports Q1 2025 results, showcasing resilience in core North American and UK markets despite overall revenue decline.
Key Takeaways:
- Total revenue dropped 4.7% to $589.2m following Asia-facing online business divestiture
- Casinos & Resorts and North America Interactive segments showed positive growth
- Strategic AU$200m investment in Star Entertainment Group signals international expansion
Bally’s Q1 2025: Mixed Results Amid Strategic Shifts
Core Markets Shine Despite Overall Decline
Bally’s Corporation’s first quarter 2025 financial results reveal a complex picture of strategic divestment and targeted growth. The company reported a 4.7% year-on-year decrease in total revenue, reaching $589.2m. This decline primarily stems from the sale of its Asia-facing online business in late 2024.
Despite the headline figure, Bally’s core gambling operations in North America and the UK demonstrated resilience. The Casinos & Resorts division, Bally’s largest segment, posted a 2.6% revenue increase to $351.2m. Adjusted EBITDAR for this segment rose 6.3% to $95.1m, bolstered by the integration of four regional properties acquired through the Queen Casino & Entertainment deal.
Digital Operations Show Promise
The North America Interactive segment exhibited strong growth, with revenue climbing 12.5% year-on-year to $44.5m. This improvement was driven by the integration of Queen’s digital operations and the ongoing expansion of BallyBet and iGaming offerings. BallyBet now operates in 11 states, while iGaming is available in New Jersey, Pennsylvania, Rhode Island, and Ontario.
In the International Interactive segment, revenue fell 18.3% to $191.7m due to the Asia business divestiture. However, UK operations remained a bright spot, with revenue increasing 4.9% (5.6% in constant currency) thanks to high player retention and improved monetization.
Strategic Investment Signals Global Ambitions
Looking beyond Q1, Bally’s has made a significant move to expand its international presence. The company has invested AU$200m in Star Entertainment Group, an Australian casino operator with properties in Sydney, Brisbane, and the Gold Coast. This strategic investment, structured through a convertible note and subordinated debt, could potentially give Bally’s a 38% equity stake in Star Entertainment.
Outlook and Strategy
Chief Executive Robeson Reeves expressed cautious optimism for the remainder of the year, highlighting ongoing efforts to streamline operations and drive margin improvement across all segments. He stated, “Despite global economic uncertainty, Bally’s gambling operations remain stable and well-positioned for long-term shareholder value creation.”
The company plans to maintain its focus on disciplined capital deployment, operational integration, and strategic expansion in both domestic and international gambling markets. As the industry continues to evolve, Bally’s appears poised to leverage its strengths in core markets while pursuing growth opportunities on a global scale.
