Bally’s Q2 revenue up 825% as “rebounding demand” lifts financials
US casino operator reports rises in all key metrics as firm readies financial position for Gamesys acquisition
Bally’s has reported an 825% year on year revenue rise for Q2 2021 to $267.7m.
Releasing its financial report for the period, the Twin River operator confirmed a substantial uptick in operational income, which rose from a Q2 2020 loss of $20.9m to a positive $80.5m during the same period of 2021.
Company income from operations margin returned to the black during Q2, jumping to 30.1%
Bally’s adjusted EBITDA also increased from a Q2 2020 negative figure, rising to $83.7m and corresponding to an increased adjusted EBITDA margin of 31.3%.
During the quarter, Bally’s changed its management structure to cater for both recent and pending acquisitions, creating three main operational segments; East, West and other.
The Eastern segment includes Twin River Casino Hotel, Tiverton Casino Hotel, Dover Downs, Bally’s Atlantic City, and Tropicana Evansville. During Q2, Eastern operational revenue increased by 1,171% to $132.4m from a prior 2020 figure of just $10.4m as many land-based venues were closed due to Covid-19 during the prior corresponding period.
Bally’s Western segment includes Hard Rock Biloxi, Casino Vicksburg, Bally’s Kansas City, Eldorado Shreveport, Bally’s Black Hawk, Bally’s Lake Tahoe, and Jumer’s Casino & Hotel. In Q2, revenue from this division grew by 603% year on year to $127.8m.
The firm’s other segment, which includes the Bally’s Interactive business, saw a 2,276% year on year revenue increase during Q2 2021, with revenue hitting a record $7.4m.
Bally’s outgoing president and CEO George Papanier welcomed the positive results, citing the impact of Covid-19 relaxations on the firm’s land-based assets.
“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,” Papanier explained.
“Improved consumer confidence, minimal capacity restrictions and our disciplined operating strategy all contributed to extremely strong numbers across the board in the second quarter.
“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,” Papanier added.
As part of its preparations for the impending Gamesys acquisition, Bally’s has committed to conducting a double offering of senior credit notes totalling $1.4bn.
The first offering comprises $750m in aggregate principal amount of 5.625% senior notes due for repayment in 2029, while the second is for $750m in aggregate principal amount of 5.875% senior notes and is due for repayment in 2031.
In addition, Bally’s has confirmed the agreement of new bank credit facilities consisting of a revolving credit facility in an aggregate principal amount of up to $620m and a term loan facility in an aggregate principal amount of $1.945bn.