Bally’s Corporation (NYSE:BALY) Q3 2022 Earnings Conference Call November 3, 2022 8:00 AM ET

Company Participants

Lee Fenton - CEO

Bobby Lavan - CFO

George Papanier - President, Retail

Robeson Reeves - President, Interactive

Conference Call Participants

Barry Jonas - Truist Securities

Jonnathan Navarrete - Cowen Inc.

Jeff Stantial - Stifel

Cassandra Lee - Jefferies

Jordan Bender - JMP Securities

Dan Politzer - Wells Fargo

Ricardo Chinchilla - Deutsche Bank

Chad Beynon - Macquarie Capital

Operator

Good day, and thank you for standing by. Welcome to the Bally’s Corporation third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers ' presentation, there will be a question-and-answer period. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I'd now like to turn the call over to Bobby Lavan, Chief Financial Officer for Bally’s. Please go ahead, sir.

Bobby Lavan

Good morning, everyone and thank you for joining us on today's call. The earnings release and presentation that are accompanying this call are available in the Investor Relations section of our website. With me on today's call are Lee Fenton, Chief Executive Officer; George Papanier, President, Retail; and Robeson Reeves, President, Interactive.

Before we begin, we would like to remind everyone that comments made by management today will contain forward-looking statements. These forward-looking statements; include plans, expectations, estimates and projections that involve significant risks and uncertainties. These risks are discussed in the company's earnings release and SEC filings. Actual results may differ materially from the results discussed in these forward-looking statements. In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in the schedules in our earnings release. We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges within certain expenses. Today's call is also being broadcast live on our Investor site, and will be available for replay shortly after the completion of this call.

Now handing it over to Lee.

Lee Fenton

Thank you, Bobby, and hello, everyone. We are one year on from bringing Gamesys into the Bally family, and the industrial logic remains as strong as ever. We now have a powerful global business with diversity of revenues and EBITDA. The Casinos and Resorts segment is going from strength to strength, as the portfolio of properties goes into the next phase of integration. The Interactive business have a tough COVID-driven comps to overcome, and has been impacted with negative FX swings through ’22. But Q3 has seen Interactive move to greater stability and profitability. As promised, we continue to deliver strong free cash flow from what is now a globally and channel-diversified business. The optimal integration of our combined assets remains unfulfilled for now as we still have work in progress, but we have made significant strides towards fulfilling that vision. The awareness of the Bally brand continues to grow, and employees from table dealers to tech developers, identify as Bally team members. Integration beyond the brand on the casinos and resort side has begun, and we're starting to see the fruits of that labor. Bally’s Chicago is a gamechanger for the group, and the early performance at Tropicana Las Vegas has been encouraging, and we're delighted to finally have a presence on the strip. New Jersey iGaming climbed to a 3.5% market share in the quarter, with CPA significantly below our peers, as we broaden the options available to our bricks and mortar database. New Jersey is shaping our blueprint thinking for future States.