The case for & against
Bull & Bear analysis
Bearish
Bally's Corporation (NYSE: BALY) is a diversified gaming and entertainment company that operates casinos, resorts, and online gaming platforms throughout North America and internationally. Notable for its expansion efforts, particularly in Chicago, Bally's aims to leverage its diverse portfolio while navigating challenges from heightened competition and economic fluctuations within the gaming industry.
Bull says
- ↑North America Interactive segment grew 95% YoY to $49.2M in Q2
- ↑Ended Q2 with $191M cash and repurchased 5.8M shares for $68.6M
- ↑Chicago permanent casino opening in 2026 boosts long-term growth
- ↑Strong Book-to-Price ratio (2.80) and positive leverage usage
- ↑Management confident on iGaming momentum despite traditional headwinds
Bear says
- ↓Earnings yield is negative and profitability metrics remain weak
- ↓Revenues up just 3% YoY in Q1 and Q2, showing stagnation
- ↓EBITDA margin fell to 28% amid headwinds in RI and Atlantic City
- ↓Long-term debt of $3.7B elevates leverage risk in downturn
- ↓Construction disruptions around Providence Bridge hurt margins
- ↓High leverage risk and low institutional interest dampen sentiment
Investment themes with BALY
Consumer Services↑ +0.53%
Everyday goods and personal services for consumers
MAR · DASH · EBAY
Casinos↑ +0.56%
GLPI · CHDN · RRR
Short Ideas↓ -0.14%
Stocks recommended for short-selling opportunities
XBI · FXI · ARKG
Earnings Call · Q4 2023 · Mgmt. Guidance
Updated 07-11-2026neutral
Transcript signals
Bull points
- we're seeing a growth in our Chicago temporary facility, increasing the database from zero to 65,000 in six months, and we're happy about the growth short term, as metrics of success continue to increase week over week.
- we're seeing weather that's kind of more back to normal weather patterns in February. And right away, we bounce back and we feel that we're back to We're back to normal kind of inflationary growth levels.
- Our margins should be holding exactly there; I feel good about our plans we're going to go above the line with both Bally's and Virgin in the UK. We definitely within that, we have expansion in Brazil; we're looking at other markets too.
Bear points
- experience market softness during the back half of 2023, and, you know, and by the way, during that period, we actually saw market improvement from our perspective in 10 of our 13 markets. that we compete in. So we saw some real impact in October, a lot of softening. But then we got a nice bounce back in December. Then, of course, we ran into the weather, which is really what your question is. That impacted us, just like you've seen the impact in most of the regional operators. Las Vegas really was not impacted, obviously. But to quantify it, we probably It was probably about a 20% impact on us.
- So touching on fourth quarter, I'd view that as an anomaly. The 33 to 35 range that we discussed allows us to ensure that we can continue to invest.
- adjusted EBITDA loss of approximately 30 million for 2024.
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