Bally’s Bounces Back, Riding a Raft of Debt and Acquisitions
Buoyed by the relative success of the Covid-19 vaccine rollout and flush with the positive affirmation of its proposed US$2.82 billion (£2bn/€2.32bn) acquisition of the Gamesys Group, Bally’s Corporation, the casino and racetrack operator, has posted a “remarkable return” to financial normality this first quarter, ending March 31.
Revenue in Q1 was recorded at US$192.27 million (£136m/€158m); up 76 per cent, year-on-year.
Income from operations totalled almost US$30 million (£21.21m/€24.65m), the strongest quarter since Q2 2019. Adjusted EDBITA was up, year-on-year, almost 138 per cent to US$52.5 million (£37.11m/€43.14m).
“This was a remarkable first quarter for Bally’s,” said President and CEO George Papanier: “As Covid-19 vaccinations rolled out, and protocols loosened, we experienced a strong rebound in demand that led to a [big] increase in [visits].
“As a result, we achieved record Adjusted EBITA and continued margin expansion.
“As we approach historical operating levels, we are encouraged by the performance at many of our properties this quarter. They offer tremendous growth opportunities and the potential to deliver strong results over the coming quarters,” he concluded.
The merger between Bally’s and Gamesys, the UK’s leading online bingo and casino provider, is set for completion by this year’s final quarter.
Although the value of company shares have fallen by some 30 cents a share over the last 12 months, Bally’s was, nevertheless, still able to raise US$671 million (£474.36m/€551.30m) to validate its move on Gamesys, which in turn strengthens its ability to exploit the growing US market.
In further financial information released by the corporation, Bally’s reported that they held US$151.7 million (£107.23m/€124.63m) in cash, had a US$250 million credit facility (£176.72m/€205.30m) and that the company was shouldering around US$1 billion of debt (£706.88m/€821.58m).