BALY: Model Update

Research evidence excerpt

BALY: Model Update

USD) 16.17

Source: Bloomberg1) as we expect BALY to offset that with less marketing/promos, higher share from tail operators

exiting (mid-teens share for BALY), as well as synergies from its Intralot deal. Our Casino &

Resorts expectations for 2Q-4Q are more or less unchanged, with strength in new land-based Price Performance Exchange-NYSE

facilities offsetting new competition elsewhere. 52 Week range USD 20.74-8.46

Overall, we remain Underweight on BALY as completion/ROIC and/or overall funding for its

large-scale integrated resorts across Bally Chicago, Bally Bronx and Tropicana LV remain an

overhang/concern.

1Q operating results. As it relates to 1Q results, BALY reported property adjusted EBITDAR of

$196m that was 15%/15% below us/consensus and revenue of $756m that was 2% below both

Source: IDC

us/consensus. The EBITDAR miss was driven by its reclassified Bally Intralot segment, as it Link to Barclays Live for interactive charting

posted EBITDAR of $102m that was 17%/16% below us/consensus. Casino and Resorts posted

$96m in EBITDAR that was 9% below both us/consensus, while North American Interactive saw

U.S. Gaming, Leisure & Lodging$7m in EBITDAR losses, missing our/Consensus estimate of $3m/$4m in losses.

Brandt Montour, CFA

Our PT of $8 (-$1) is derived from our 2027E SOTP ascribing 6.5x and 12.0x EV/EBITDAR on +1 212 526 9947

brandt.montour@barclays.comCasinos and Resorts and Bally Intralot, respectively, less capitalized corporate expenses, less

BCI, US

2027E net debt, less capitalized lease debt (adjusted for CIP), less minority stake in Intralot, plus

its 38% interest in the Star Group as well as its notes receivable. We add $1 of equity value for Kristi Martiko, CFA

North America digital.