Bally’s reports ‘better than expected’ preliminary Q2 results

Bally's celebrated its rebranding and trading debut on the New York Stock Exchange in November 2020.

2021-07-26

United States

Reading time 1:38 min

The operator expects second-quarter revenue to be between $258 and $268 million, up from total revenue of $28.9M in Q2 2020. Bally’s seeks to refinance the bridge facility and its Gamesys' debt through one or more capital market transactions. The transaction is expected to close during Q4 2021.

Bally's Corporation provided on Monday preliminary unaudited financial results for the three-month period ending June 30, 2021. Bally's also updated its financing plans for its previously announced acquisition of Gamesys Group.

For the second quarter of the year, Bally's estimates that total consolidated revenue will be in the range of $258 to $268 million, with Adjusted EBITDA in the range of $80 to $84 million. This is up from total revenue of $28.9 million and Adjusted EBITDA of negative $10.7 million for the second quarter of 2020.

Have you heard? The Ballyverse has expanded! 🍋🎰🎲 We have several new properties in our portfolio and more to come in 2022!#Ballys #jumpintothethrill #welcometotheballyverse pic.twitter.com/3obUUplXL5
— Bally's Corporation (@BallysCorp) July 13, 2021

As a result of better than expected operating performance at its land-based retail casinos and interactive businesses, Bally's does not plan to issue incremental common equity or draw on the previously disclosed Gaming and Leisure Properties commitment to fund the Gamesys acquisition. Bally's continues to evaluate investment options with potential strategic partners and such investment is not necessary to fund the Gamesys acquisition.

Back in April, Bally's announced that it has agreed on definitive terms by which it will combine with online gaming operator Gamesys, as reported by Yogonet. Earlier this month, both firms said that, at their respective meetings of shareholders held on June 30, each company obtained the requisite votes for all shareholder approvals related to the combination.

On Monday, Bally's said it arranged bridge financing for the Gamesys transaction from Deutsche Bank AG, London Branch, Goldman Sachs USA, and Barclays Bank PLC, consistent with U.K. regulatory requirements. Bally's intends to seek to refinance the bridge facility and its and Gamesys' debt through one or more capital market transactions, which are currently expected to include public or private bond offerings and a company-wide bank credit facility.

Closing the Gamesys transaction, which is subject to customary conditions including regulatory approval, is expected to occur during the fourth quarter of 2021.