Coronavirus Pandemic Hits Bally’s Revenues

Bally’s Corporation (NYSE: BALY) has reported a net loss of $5.5 million for the 2020 financial year mainly due to the temporary closure of its US land-based casinos, which led to a 28.8% fall in revenue.

Bally’s Corporation has a 28.8% fall in revenue

The company saw revenues of £372.8 million for the year, down from $523.6 million the previous year, when it used the Twin River brand name. The temporary closure of casinos due to the coronavirus pandemic saw revenues fall across all of its business segments.

Gaming remained the company’s main source of income but revenue fell 20.7% year on year to $291.7 million while racing revenues more than halved from $13.1 million to $6.4 million. Furthermore, hotel revenue dropped by 36.7%, food and beverage revenue by 54.1% and other revenue by 47%.

Despite this, the company’s president and chief executive George Papanier insisted that Bally’s “continued to systematically execute our strategic growth and development initiatives.”

With the casinos closed, Bally’s was able to make some savings and its operating expenses dropped 11.7%. However, the business ended the year with an operating loss of $18.4 million, compared to a profit of $114.6 million the previous year.

Loss before tax was $74.8 million, compared to a profit of $75.2 million the previous year. However, after receiving tax benefits, the net loss for 2020 was just $5.5 million.

The figures were better in the fourth quarter, when many restrictions were relaxed. Revenue was down just 9.4% while gaming revenue was up 7.9%. On the other hand, racing revenue, hotel revenue, food and beverage revenue, and other revenue were all down.


George Papanier Bally’s Corporation President and Chief Executive

Though fourth quarter results were impacted by various regional capacity and health limitations, most notably in Rhode Island, we expect to benefit from a strong rebound in demand across our properties, as well as the operational efficiencies and strong margin improvements that we have seen as a continuing trend since re-opening from the pandemic. In fact, market indications and preliminary results show markedly stronger consumer demand in January and February.

George PapanierBally’s Corporation President and Chief Executive

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