Bally's Corporation posted $792.2m in second-quarter revenue, up 20% year-on-year. But regulatory filings show the operator risks breaching covenants on its credit facility within twelve months unless it secures new financing.
Cash on hand fell from $906.7m at the start of the year to $487.8m by the end of June. Operating cash outflow for the first half reached $265.9m, compared with $21.4m a year earlier, driven by $98.9m in licensing fees, losses and working-capital changes. Management included a going-concern warning in the filing.
Bally's is exploring asset sales, fresh debt and equity issuance. The company signed a preliminary term sheet in July for a loan to fund its Bronx casino and corporate needs, though the deal is not final. It already sold the Bally's Twin River property to GLPI in February for $700m, directing most proceeds to debt repayment. Minimum annual rent rose by $56m as a result.
The pressure comes as Bally's carries three major development projects at once: a permanent Chicago casino (around $400m left to spend of a mandatory $1.34bn), a $4bn Bronx resort (the licence cost $500m, a golf-course concession $115m in the first quarter) and a Las Vegas complex on the former Tropicana site.
Adjusted EBITDA slipped to $124m from $129.2m. Interest expense climbed to $119m from $97.5m. Net loss came to $146.1m, or $2.41 per share. Shares dropped from $13.99 to $12.85 in half an hour after the results.
Bally's filed its earnings late for the second consecutive quarter and did not hold a call.
