Bally\'s Corp (BALY)BALY

Bally's Corporation (BALY): A Comprehensive Overview

This comprehensive overview of Bally's Corporation (BALY) will delve into its history, core business, market share, financial performance, and future prospects.

Company Profile:

History and Background:

Bally's Corporation, formerly known as Twin River Worldwide Holdings, can trace its roots back to 1977 when Donald Carano founded the company based on the Atlantic City casino Bally's Park Place. However, the company's current iteration emerged in 2020 with the acquisition of Bally's Corporation and the subsequent rebranding. Today, Bally's is a leading multi-state gaming and entertainment company.

Core Business Areas:

Bally's operates in two main segments: Owned and Operated Casinos and Online Sports Betting. The Owned and Operated Casinos segment encompasses 14 land-based casinos across 10 states. The Online Sports Betting segment, under the Bally Bet brand, offers online sports betting and iGaming in various states where legalized.

Leadership and Corporate Structure:

Bally's is led by Lee Fenton, the company's Chairman and CEO. The leadership team comprises experienced executives with expertise in gaming, hospitality, and technology. Bally's corporate structure is decentralized, with each segment operating independently under its own management team.

Top Products and Market Share:

Products:

• Casinos: Bally's operates a diverse portfolio of casinos offering gaming, dining, entertainment, and hotel accommodations.
• Online Sports Betting: Bally Bet provides online sports betting and iGaming services in states where permitted.

Market Share:

• Land-based Casinos: Bally's holds a significant market share in several regional markets, particularly in Rhode Island and Colorado.
• Online Sports Betting: The online sports betting market is highly competitive, with Bally Bet facing established players like DraftKings and FanDuel. However, Bally Bet's market share is growing rapidly, particularly in states where it has early access.

Comparison with Competitors:

Bally's differentiates itself from competitors by offering a unique blend of land-based and online gaming experiences. The company leverages its casino loyalty program, Bally's Rewards, to cross-promote its online and offline offerings.

Total Addressable Market:

The total addressable market for Bally's is vast. The legal sports betting market is projected to reach $18 billion in revenue by 2028. Additionally, the global casino market is estimated to reach $288 billion by 2027.

Financial Performance:

Recent Financial Statements:

Bally's recently reported a strong Q2 2023 with revenue of $564 million, up 26% year-over-year. Net income was $91 million, representing a 196% increase from the same period in 2022. The company's healthy financial performance is driven by the robust growth of its online sports betting segment and the reopening of its land-based casinos post-pandemic.

Profit Margins and EPS:

Bally's has shown improvement in its profit margins. The company's gross margin in Q2 2023 was 72%, while the operating margin was 16%. This translates to an EPS of $0.41, up significantly from $0.14 in Q2 2022.

Cash Flow and Balance Sheet:

Bally's has a solid financial position with healthy cash flow and a strong balance sheet. The company has over $600 million in cash and equivalents and minimal debt.

Dividends and Shareholder Returns:

Dividend History:

Bally's does not currently pay dividends, focusing on reinvesting its profits back into the business to drive future growth.

Shareholder Returns:

Bally's stock has been a strong performer, delivering returns of over 100% in the past year. However, since its peak in February 2023, the stock has lost a significant portion of its value reflecting the volatility often seen in the gaming and entertainment sector.