{"id":296845,"date":"2023-11-01T16:30:20","date_gmt":"2023-11-01T21:30:20","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=296845"},"modified":"2023-11-02T11:24:15","modified_gmt":"2023-11-02T16:24:15","slug":"ballys-q3-earnings-job-cuts-tropicana-lease","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ballys-q3-earnings-job-cuts-tropicana-lease\/","title":{"rendered":"Bally\u2019s Open to Selling Tropicana Las Vegas Lease, Cuts 300 Digital Jobs"},"content":{"rendered":"

In conjunction with its third-quarter earnings report — one that sent the stock reeling to a 14.80% loss on Wednesday — Bally\u2019s (NYSE: BALY) announced it will reduce its headcount by 300. Executives added they could be open to selling the lease on the Tropicana Las Vegas casino hotel if the price is right.<\/p>\n

\"Tropicana
Tropicana Las Vegas operator Bally’s, seen above, cited uncertainty at the venue as one reason for its dismal Q3 results. (Image: AP News<\/em>)<\/figcaption><\/figure>\n

News of the job cuts comes after the Rhode Island-based regional casino operator said in January<\/a> that it could reduce headcount at its interactive unit by up to 15% to cut costs.<\/p>\n

That and a steep earnings miss contributed to Wednesday\u2019s sell-off by the moribund stock. Bally\u2019s said it lost $1.15 a share on revenue of $632.5 million in the September quarter. Analysts expected a loss of 15 cents on sales of $634.54 million.<\/p>\n

Further fueling the share price plunge was updated 2023 earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) and revenue guidance.<\/p>\n

Bally’s is adjusting the revenue guidance provided on May 9, 2023, for the remainder of the year to $2.4 billion to $2.5 billion. The guidance range for Adjusted EBITDAR is now $640 million to $655 million,\u201d<\/strong> according to a statement.<\/p><\/blockquote>\n

The company cited delays in launching its temporary casino in Chicago<\/a>, among other factors, as the reason behind the pared outlook.<\/p>\n

Tropicana Las Vegas in Holding Pattern<\/h2>\n

Tropicana Las Vegas is Bally\u2019s only Sin City property, and that venue is in a holding pattern as the operator, real estate owner Gaming and Leisure Properties (NASDAQ: GLPI) awaits the outcome of a Major League Baseball (MLB) owners meeting later this month.<\/p>\n

\n

At the conference, owners are expected to approve the Oakland Athletics (A\u2019s) move to Las Vegas, which includes plans to build a new stadium<\/a> on the Tropicana site. On a conference call with analysts, Bally\u2019s executives said uncertainty over Tropicana\u2019s future contributed to softness at the venue in the third quarter.<\/p>\n<\/div>\n

Bally’s CFO Marcus Glover told analysts that Tropicana\u2019s current value is \u201cenormous\u201d and that at a compelling price, Bally\u2019s would be open to selling its lease on the venue. CEO Robeson Reeves reminded analysts that Bally\u2019s paid just $150 million to acquire rights to that lease, with Chairman Soo Kim adding Tropicana\u2019s asset value has increased.<\/p>\n

\u201cAlthough we have some short-term pain, this is an extremely valuable asset,\u201d Reeves told analysts.<\/p>\n

Bally\u2019s Q3 Results a Minefield<\/h2>\n

Curtailed investment at Tropicana and regulatory setbacks that delayed the opening of the temporary casino in Chicago weren\u2019t the only blows to Bally\u2019s third-quarter results. Weakness at the operator\u2019s venues on the Atlantic City, N.J. Boardwalk, and in Evansville, Ind. also weighed on outcomes.<\/p>\n

Bally\u2019s didn\u2019t go into detail about Atlantic City issues, but executives noted its regional casino in Evansville was hindered by more historical horse racing machines coming online in neighboring Kentucky.<\/p>\n

We sense investors may have expected sequential improvement as BALY transitions to a variable-cost tech strategy,\u201d<\/strong> wrote Stifel analyst Jeffrey Stantial in a note out earlier today. \u201cFY23 guidance was revised lower on Chicago timing & curtailing of Tropicana operations ahead of a potential A’s relocation, with implied Q4E Adj. EBITDAR ~$20M below Consensus at midpoint. Overall, we see more negatives than positives in BALY’s Q3 results, though the bar felt low heading into earnings.\u201d<\/strong><\/p><\/blockquote>\n

He rates Bally\u2019s a \u201chold\u201d with a $10 price target.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bally’s Q3 earnings report prompts a 14.80% stock decline as the company announces job cuts and considers selling the lease on Tropicana Las Vegas casino hotel, impacted by factors like a significant earnings miss and guidance adjustments.<\/p>\n","protected":false},"author":46,"featured_media":164257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,81886,86430,86438],"tags":[81897,81903,23,86455,86457],"acf":[],"yoast_head":"\nBally's Q3 Results Hurt By Chicago Delays, Tropicana Las Vegas<\/title>\n<meta name=\"description\" content=\"Bally's announces job cuts and explores the sale of Tropicana Las Vegas lease amidst a challenging Q3 earnings report, leading to a 14.80% stock drop. 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