Gamesys Reports £23.8m Profit in Q1

Q1 Financial Results

Gamesys Group has released an expanded trading update for Q1 2021, reporting a £23.8m (US$33.6m/€27.6m) profit for the first quarter.

The announcement comes just over a month after the software company revealed Q1 revenues of £197.8m, alongside news of a forthcoming mega merger with US casino giant Bally’s Corporation.

The latest figures reveal that Gamesys’ costs took a significant chuck out of the revenue figure, with distribution costs amounting to £107.7m, administrative costs at £58m, severance costs at £800,000 and transaction costs at £1.9m. All of which meant expenses reached £168.4m.

Foreign exchange changes also cost the firm £4.2m, bringing costs to £164.2m in total. This equated to earnings before interest and tax of £33.6m.

With total financing expenses of £5.3m, income was reduced further to £28.3m. Tax expenses of £4.5m, finally reduced total profits for Q1 to £23.8m.

Last month Bally’s raised approximately US $671.4m (£482m/€559m), after deducting underwriting discounts, but before expenses, with it intends Bally’s intends to use to help fund a portion of the cash consideration payable to shareholders of Gamesys.

Bally’s acquisition of Gamesys is scheduled to close in Q4 this year.

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