Ballys 2025 Q1 Earnings Misses Targets as Net Income Swings 119.8%

Bally's Corporation (BALY) reported its fiscal 2025 Q1 earnings on May 12th, 2025. Bally's financial results for the first quarter indicate a challenging period with revenue falling short of expectations. Despite the revenue shortfall, the company managed to reverse its previous net loss and achieve profitability. The guidance remains optimistic, with expectations for stable performance across various segments in the upcoming quarter. Investors should consider the mixed outlook and recent strategic initiatives when evaluating future prospects.

Revenue
Bally's experienced a significant decline in total revenue, dropping 40.4% to $368.69 million in 2025 Q1, compared to $618.48 million in the same quarter of 2024. In terms of segments, the gaming division was the highest contributor, generating $499.55 million. The hotel segment produced revenue of $29.72 million, while food and beverage operations added $31.56 million. Licensing brought in $8.60 million, and retail, entertainment, and other activities accounted for $19.77 million. Overall, the total revenue for these specified segments reached $589.19 million.

Earnings/Net Income
Bally's returned to profitability this quarter, posting an EPS of $0.57, a notable recovery from a loss of $3.61 per share in 2024 Q1, marking a 115.8% positive change. The company also achieved a net income of $34.52 million, representing a 119.8% positive swing from a net loss of $173.91 million in the previous year. The EPS improvement reflects the company's successful turnaround in earnings.

Price Action
The stock price of Bally's has edged down 2.27% during the latest trading day, has tumbled 8.49% during the most recent full trading week, and has plummeted 29.05% month-to-date.

Post Earnings Price Action Review
The strategy of buying BALY shares when revenues beat expectations and holding them for 30 days shows promising potential, supported by both historical performance and current indicators. Historically, Bally's has demonstrated resilience and growth, with notable year-on-year revenue increases and improved adjusted EBITDAR in previous quarters. Analysts project a mixed financial outlook for upcoming quarters, with some segments expected to grow while others may face challenges. Despite this, the stable consensus EPS estimate indicates steady earnings expectations. Holding BALY for 30 days post-earnings could leverage short-term upward trends in stock price, which often follow positive earnings announcements. However, investors should remain cautious of potential risks such as market volatility and economic shifts that may impact Bally's financial performance. The strategy is backed by the company's growth trajectory, but investors should consider their risk tolerance and investment horizon.

CEO Commentary
Robeson Reeves, Bally's Chief Executive Officer, highlighted the completion of key transactions with The Queen Casino & Entertainment and Standard General, which expanded the company's scale and positioned it for long-term growth through the addition of four regional gaming properties. He noted the focus on operating efficiencies and profitable growth while optimizing the International Interactive business and North America segment. Despite challenges from inclement weather and increased market supply, Bally's legacy properties outperformed market growth in seven of twelve jurisdictions, and the C&R segment Adjusted EBITDAR grew 6.3% year over year to $95.1 million, reflecting resilience amid macroeconomic pressures.

Guidance
Bally's anticipates continued stability across its Casinos & Resorts operations in the second quarter, with expectations of improvements in Atlantic City due to leadership changes. The company is optimistic about the performance of its International Interactive segment, especially in regulated European markets, and expects North America Interactive revenue to benefit from the integration of Queen's operations and ongoing marketing efforts. Bally's is focused on maximizing its iGaming presence across multiple states and remains committed to its strategic capital investment in Star Entertainment Group to enhance future growth opportunities.

Additional News
In recent developments, Bally's Corporation completed key transactions with Standard General and The Queen Casino & Entertainment, expanding its gaming portfolio. This strategic move involved acquiring four regional gaming properties, positioning the company for long-term growth. Additionally, Bally's announced a significant capital investment in Star Entertainment Group, an Australian entertainment and gaming company, aimed at enhancing future growth prospects. Furthermore, Bally's continues to focus on maximizing its iGaming presence across multiple states, including New Jersey, Pennsylvania, Rhode Island, and Ontario, as part of its strategic growth initiatives. These developments highlight Bally's proactive approach in expanding its market presence and optimizing growth opportunities.