Bally’s Corporation has revealed record revenues and earnings performance in its financial results for the second quarter ended June 30, 2021.
Q2 revenue increased $238.8m to $267.7m from $28.9m year-on-year, primarily due to a reduction in COVID-19 restrictions. Revenue for the East segment increased $122m to $132.4m and the West segment increased $109.7m to $127.9m versus Q2 2020, marking the single largest revenue quarter in its history.
The incremental revenues from acquisitions completed in the second half of 2020, including Bally’s Kansas City, Casino Vicksburg, Bally’s Atlantic City and Eldorado Shreveport, and those acquired in the first half of 2021, including SportCaller, MKF, Bally’s Interactive, Bally’s Lake Tahoe (formerly MontBleu Resort Casino and Spa), Tropicana Evansville and Jumer’s Casino & Hotel, contributed to aggregate Q2 revenue of $134.6m.
The company also continued to see strong operational efficiencies positively impacting margins, a trend since re-opening from the pandemic. Income from operations increased $101.5m year-on-year to $80.5m, while operating margins increased to 30.1% compared to (72.5)% for the same period last year.
Net Q2 income was $68.9m, an increase of $92.5m from a net loss of $23.6m year-on-year. Net income for the quarter was bolstered by several one-time items including pre-tax gains of $77.5m in connection with the acquisitions of Bally’s Lake Tahoe and Tropicana Evansville.
Adjusted EBITDA was $83.8m, an increase of $94.5m from negative adjusted EBITDA of $10.7m. The West segment adjusted EBITDA increased to $52.1m from $4.7m, while for the East segment it was $41.6m versus negative adjusted EBITDA of $10.3m.
George Papanier, President and CEO, 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.”
He added: “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 of June 30, 2021, the company had $195.8m in cash and cash equivalents and restricted cash of $677.8m, which included $667.9m of cash proceeds from the April 2021 common stock offering to finance the acquisition of Gamesys.
Total debt was $1.37bn as of June 30, 2021, compared to $1.13bn as of December 31, 2020.