Bally's Corp Q1 FY2023 earnings call

• Management changes: Bobby Lavan leaving, Marcus Glover joining as CFO, Charles Diao and Jaymin Patel appointments. - UK regulatory: White paper released, Bally's reviewing and working constructively with government. - Partnerships: Agreed with Kambi and White Hat for North America sports betting, aiming to transition to variable cost model. - Segment performances: Strong results across Casinos & Resorts, International Interactive, and North American Interactive, with Casinos & Resorts showing resilience, International Interactive growing in UK, and North American Interactive progressing in iGaming.

The company achieved strong results across all segments. Casinos & Resorts generated 1Q revenues of $329 million, up 9.4% year-on-year, with EBITDA of $105 million. Despite weather impacts in Tahoe and Evansville, the core portfolio had EBITDAR margins of 37.8% excluding lower margin properties. International Interactive generated $80.2 million of EBITDA at a 32.6% margin, with the UK growing 9.6% year-on-year on a constant currency basis. North American Interactive generated negative $10.5 million of EBITDAR, but showed progress in New Jersey (share >4%), Ontario, and was set to launch in Pennsylvania.

• Upgraded EBITDAR guidance to $665 million to $700 million. - Reduced 2023 capital expenditure guidance from $170 million to $160 million. - Lowered software development cost projections for 2023 to $40 million. - Repurchased 1 million common shares and $15 million of bonds.

• Regulatory risks in the UK: Short-term potential impact on player engagement, but long-term benefits from market consolidation as smaller operators exit.

Q: About management transition and white paper impact.

A: Marcus Glover talks about being excited to join and Robeson Reeves discusses short-term tiny impact of UK white paper and long-term market consolidation benefits.

Q: On guidance and North America Interactive restructuring.

A: Bobby Lavan mentions guidance tailwinds and North America Interactive restructuring pacing.

Q: On Tropicana and capital allocation.

A: Robert Lavan talks about Tropicana's strategy and capital allocation balance between share repurchases, bond repurchases, and Chicago investment.

Q: On North America Interactive labor efficiencies and 2024 outlook.

A: Robeson Reeves and Robert Lavan discuss labor efficiencies from Kambi partnership and 2024 projections for North American Interactive's iGaming and sports betting segments.

Q: On Chicago casino IPO and New Jersey market share.

A: Robert Lavan talks about potential Chicago IPO and Robeson Reeves mentions New Jersey market share target of 6% to 8% to be achieved in 12-18 months.