Bally’s business ‘evolving’ after Gamesys acquisition and record Q3

Bally's Corporation has reported its financial results for the third quarter of 2021, declaring a record revenue of $314.8m for the measuring period.
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Bally’s Corporation has reported its financial results for the third quarter of 2021, declaring a record revenue of $314.8m for the measuring period.

For Q3, ending September 30, 2021, Bally’s achieved a record revenue of $314.8m, an increase of $198.2m (169.9%) year over year, a net loss of $14.7m (Q3 2020: net income of $6.7m), and an adjusted EBITDA of $78m ($40m increase YoY).

The firm’s retail casinos revenue during the quarter was a record high of $301.6m, accomplishing a net income of $49.4m (Q3 2020: $22.1m) and an adjusted EBITDAR of $106.5m (Q3 2020: $43.5m).

Since Bally’s acquisition of Gamesys was completed on October 1, Gamesys results are not included in the firm’s Q3 2021 results. Gamesys earned a revenue of $278.6m, a record high on a constant currency basis, and a net loss and adjusted EBITDA of $8.7m and $83.8m, respectively.

Commenting on the Q3 results, CEO Lee Fenton said the acquisition of Gamesys will help Bally’s evolve and grow as a ‘digital-first leader in global gaming entertainment’.

Fenton stated: “On October 1, 2021, Bally’s completed its transformational acquisition of Gamesys Group – a strategic combination that further advances Bally’s global, data-driven, omni-channel strategy.

“As a result, our business is evolving from a regional casino operator into an industry leader in retail, sports, media, and igaming, which will see us harness a set of assets that provides a formidable platform for growth as a digital-first leader in global gaming entertainment.”

He continued: “This quarter, Retail Casinos had $301.6m of revenue and $106.5m of Adjusted Retail Casinos EBITDAR. The quarter was negatively impacted by approximately $6m of losses related to natural disasters, including two hurricanes and wildfires in Nevada. 

“North America Interactive sales doubled from last quarter at $11.4m, with Adjusted EBITDA of ($5.5)m, which was in line with our expectations. Adjusted EBITDA for the Company of $78.0m includes $11.4m of rent expense and $11.1m of corporate expense.

“Gamesys had record Revenue and Adjusted EBITDA on a constant currency basis for the quarter, which will be consolidated into Bally’s results starting with the fourth quarter.”