Bally’s Enjoys Strong Q2 2021 Results
The gaming, betting and interactive entertainment company Bally’s Corporation has reported very encouraging revenue results for Q2 2021, marking a notable year-on-year increase when compared to the same quarter last year. The casino operator saw sky-high profits of $68.9m during the period, which is a $92.5m increase from Q2 2020.
Bally’s Corporation has reported record-breaking revenue results for Q2 2021, demonstrating a huge year-on-year increase when compared to the same quarter in 2020. ©Linda72/Pixabay
Easing of Covid-19 Restrictions Significantly Aided Bally’s During Q2
In its latest quarterly report, major casino operator Bally’s Corporation reported a net profit of $68.9 million for the second quarter of 2021, symbolizing a huge year-on-year increase when compared to the same period in 2020.
To be exact, this figure represents an increase of $92.5 million from Q2 2020 — a period during which Bally’s experienced a loss of $23.6 million due to the widespread closures of physical gambling retail locations due to the outbreak of the novel coronavirus (Covid-19) pandemic.
The gaming, betting and interactive entertainment company also experienced its single largest revenue quarter in its history during Q2 2021, showcasing figures of up to $267.7 million, which were 826.3% higher than Q2 2020. Of the $267.7 million total, $132.4 million arrived from the company’s East segment, while the Western division generated $127.9 million.
The defining factor behind such impressive revenue results for Bally’s Corporation is undeniably the easing of Covid-19 restrictions across much of the United States this year, following the relative success of widespread vaccination efforts.
All of the group’s physical retail venues were operating at full capacity by the end of the year’s second quarter, standing in stark contrast to the same time in 2020 when virtually all of its properties kept their doors closed between the months of March and June.
Operating Costs Soared for Bally’s in Q2
The loosening of Covid-19 restrictions across the United States and the subsequent reopening of all of Bally’s physical retail venues meant for both improved revenue results for the casino operator — as well as much higher operating costs.
Operating expenses over the second quarter of the year rose to $187.2 million for Bally’s, increasing by 275.5% in contrast to the same period last year. Of these operating costs, general and administrative costs made up the largest portion, skyrocketing up to $101.2 million.
Breaking down Bally’s costs a little further, gaming costs amounted to $61.7 million, food and drink $17 million, before acquisition, restructuring and integration costs totaled $18.4 million. Finally, amortization and depreciation cost Bally’s $25.7 million during the second quarter of 2021.
These figures resulted in a total operating income of $80.5 million. And with an additional $15.4 million worth of incoming arriving from other sources, Bally’s gross profit for the quarter came out to an impressive $95.9 million. In terms of net profit, this figure totaled $68.9 million once the $27 million worth of income tax was fully accounted for.
Closing of Gamesys Deal was Another Significant Event for Bally’s
It’s been an active year for Bally’s, just like for many other operators, with the popular casino operator finally signing off on its acquisition of online software development and gaming business Gamesys back in April 2021.
Commenting on Bally’s record revenue performance during Q2 2021, president and CEO George Papanier expressed strong confidence that the operator would continue to bounce back from the challenging year that was 2020:
“We had record revenue and earnings performance in the quarter and remain confident that we will continue to benefit from rebounding demand across our land-based portfolio. Improved consumer confidence, minimal capacity restrictions and our disciplined operating strategy all contributed to extremely strong numbers across the board in the second quarter.”– George Papanier, President and CEO, Bally’s Corporation
Bally’s acquisition of Gamesys wasn’t the only boon to its strong Q2 2021 performance, with Papanier reminding observers that its November 2020 takeover of US sportsbook Bet.Works also being a crucial step in the casino operator’s continued growth and evolution:
“The closing of the Bet.Works acquisition was another significant step in our evolution to become a leading omni-channel provider. We continue to make progress on our transformative acquisition of Gamesys and look forward to closing that transaction during the fourth quarter.”
As it currently stands, Bally’s has generated a total revenue of $460 million during this financial year, which is over three times higher than 2020’s total. Its net income currently sits at $58.2 million over the year’s first six months, which is an already encouraging indicator of how many more freedoms the company’s physical retail locations have been enjoying to date.
Bally’s Agreed to Terms for Gamesys Deal in March 2021
The UK based online gambling firm Gamesys agreed to Bally’s potential takeover terms in March 2021, after the US casino giant offered a sum of approximately £2 billion to acquire the sportsbook. The offer represents Bally’s continued interest in expanding into the ever-growing US sports betting market, thereby prompting them to seek experienced partners from across the pond.
This impressive offer amounts to a price of about £18.50 per share, with the possibility of further negotiations being left on the table. In other words, Bally’s was offering a premium of almost 40% on Gamesys’ January 25th, 2021 share price of £13.30. The casino giant also proposed to stakeholders a Share Alternative option in the deal, thereby enabling them to acquire shares in Bally’s at a rate of 0.343 per Gamesys share.
Luckily for Bally’s, Gamesys responded positively to its offer from the get-go — even offering the operator a tentative confirmation. This is hardly surprising, seeing as both Gamesys’ and Bally’s investors and stakeholders stand to profit greatly from the deal.
Gamesys controls a series of popular online casino brands, including the likes of Virgin Casino and Jackpotjoy. As such, the company holds valuable, in-depth knowledge when it comes to developing and marketing competitive iGaming products.
As part of the takeover, Gamesys CEO Lee Fenton is set to lead the combined company. However, CEO of Bally’s, George Papanier, is to stay on the company’s board — remaining as a senior executive in the retail casino business division of Bally’s.
Operator also Enjoyed Soaring Revenue in Q1 2021
Bally’s record-breaking Q2 2021 performance didn’t come out of nowhere. Back in May 2021, the casino operator revealed a huge revenue upswing for the year’s first quarter. Hot on the heels of a fresh rebrand, the company’s revenues increased 76.2% between January and March 2021 — with net losses amounting to a mere $10.7 million.
Bally’s Corporation overall revenue during the first quarter of 2021 amounted to a very healthy $192.3 million. Its adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, soared 137.9%, reaching $52.5 million in just three months.
Perhaps unsurprisingly, Bally’s attributed this growth to the return of consumers to Bally’s retail locations. A decline in new Covid-19 cases and restrictions, coupled with an encouraging start to vaccination efforts, were all contributing factors to this new reality.
