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Bally’s sees profit soar during Q2 ahead of Gamesys deal

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Bally’s Corporation recorded net profit of $68.9m for the second quarter of 2021, marking a significant increase when compared to the same period last year. 

The figure is an increase of $92.5m from 2020, when the operator made a loss of $23.6m amid venue closures because of the novel coronavirus (Covid-19) pandemic.

Bally’s also enjoyed the single largest revenue quarter in company history, recording revenue figures of $267.7m – 826.3% higher than this time last year. $132.4m came from the East segment whilst the West segment generated $127.9m.

The easing of Covid-19 restrictions aided business, with all venues operating at full capacity by the quarter’s end. This is in contrast to 2020 when properties were closed between March and June.

Operating expenses for Bally’s reached $187.2m, rising 275.5% from last year. General and administrative costs were the largest expense, shooting up to $101.2m.

Gaming costs were $61.7m, food and drink came to $17.0m, while acquisition, integration and restructuring costs were $18.4m. Depreciation and amortization totaled $25.7m.

This meant that operating income came to $80.5m. After an extra $15.4m worth of income from other sources, gross profit amounted to $95.9m.

The net profit figure of $68.9mcame after accounting for $27.0m worth of income tax.

2021 also saw Bally’s sign off on its acquisition of Gamesys in April, with the deal set to be finalized by the fourth quarter.

Bally’s president and CEO George Papanier said: “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.

“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.”

Revenue stands at $460.0m for the year to date, more than three times higher than 2020. Net income for the company stands at $58.2m for the first six months of the year, reflecting the increased freedom the company’s operations have been afforded.