Bally’s Corporation’s third-quarter trading report revealed consistent growth across most metrics, reflecting its successful efforts to adapt to rising industry challenges. The United Kingdom is emerging as an increasingly significant market for the renowned US gambling group despite the country’s ongoing regulatory changes. Such successful financial results should set the stage for further growth in the European market.
Recent Results Indicate Impressive Momentum
In an update to investors, the NYSE-listed company unveiled group-wide revenues of $632.5 million, marking a 9.4% year-on-year increase compared to Q3 2022’s $578.3 million. Bally’s International Interactive was one of the most significant contributors, reporting revenues of $243.9 million, a 7.2% rise from the previous year’s $227.6 million. The group’s UK operations were pivotal to this success, achieving a remarkable 13.1% increase.
Bally’s UK market share centers around the Gamesys Group, which the company acquired for over $2 billion in October 2021. This strategic move allowed the gambling giant to operate brands like Jackpotjoy, Virgin Casino, and Monopoly Casino. In September, Bally’s launched its branded online casino app, further bolstering its UK presence.
We believe that Bally’s brand will drive revenue and profit growth and build brand equity in the UK market.
Robson Reeves, Bally’s CEO
In a recent earnings call with investors, CEO Robson Reeves was confident that the company would sustain to exceed its current levels, hoping for even better Q4 performance. This quarter’s solid financials should allow the company to pursue growth opportunities in select international markets while reinvesting in its core UK and Asia businesses.
Flexibility Remains Paramount for Sustained Growth
Bally’s has maintained its impressive UK market share expansion despite the country’s ongoing regulatory changes. The UK Gambling Commission and the DCMS are currently engaged in consultations with stakeholders regarding the ongoing White Paper review. While more stringent affordability checks and KYC compliance requirements could impact revenues, Bally’s timely preparations allowed it to thrive.
Despite the company’s increasing focus on overseas projects, Bally’s maintains its leadership position in the USA. The gambling giant’s newest Chicago casino recently had a stellar debut, attracting over 80,000 visitors and generating approximately $6.7 million in revenue. Continued investments in promising projects across several states suggest that Bally’s will attempt to balance its core regions to achieve optimal results.
CEO Reeves was optimistic regarding the company’s long-term success, noting investments in its C&R segment should pay off in 2024 and bolster long-term profitability. Working within the UK’s tight restrictions has caused substantial innovation in customer onboarding and retention, reducing cost per acquisition and boosting deposit rates. These insights should benefit Bally’s other segments and help it stand despite rising competition.