Gamesys reports £23.8m Q1 profit as Bally’s deal approaches

As announced on April 13, the same day the merger details were made public, Gamesys made a total of £197.8m in revenue this quarter, a 27.3% increase from the first quarter of 2020.

The remainder of Gamesys’ first quarter results for 2020 were unavailable, meaning comparisons for expenses and final profit could not be made.

However, costs lowered revenue significantly for Gamesys. Distribution costs came to £107.7m, while administrative costs amounted to £58.0m. Severance costs at £800,000 and transaction costs at £1.9m brought expenses to £168.4m.

Foreign exchange changes resulted in a £4.2m expense for Gamesys, bringing the total costs to £164.2m.

This left earnings before interest and tax at £33.6m.

Interest expense totalled at £5.3m, bringing revenue down further to £23.8m. Tax expense, at £4.5m, brought Gamesys’ total net income to £23.8m in Q1.

The Bally’s-Gamesys merger agreement will see Bally’s pay 1,850 pence per Gamesys issued and outstanding share capital in an acquisition via Permier Entertainment, its wholly-owned subsidiary.

The agreement will also see Robeson Reeves, Gamesys’ chief operating officer, and Jim Ryan, non-executive director, join the Bally’s board.

Last month, it was announced that Bally’s had raised $671.4m through a share offering to help fund the acquisition.

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