Bally's 2021 Revenue Report Reveals Increase in Revenue and Net Losses

Revenue figures for Bally's Corporation for the year ended December 31st, 2021, have been reported at €1.3bn ($1.45bn), a significant increase from the 2020 fiscal year.

Despite these strong revenue results, the company has also recorded a year-on-year increase in net losses.

A Look at the Contrasting Figures

The €1.3bn ($1.45bn) revenue is a 225% increase from previous year’s results. This represents a value of about $900m more than what the company had raked in during 2020's pandemic stricken months. The report includes the adjusted EBITDA of $334m, indicating a 343%  ($263m) year-on-year increase.

On the other hand, the annual net loss was given as $72m.

Reason for the Deficit

The company's merger with Gamesys Group was a primary contributor to this deficit. In the acquisition, which took place in October 2021, Bally's paid $25.77 per share for Gamesys Group.

The merger was part of Bally's strategic combination to enhance its global omni-channel strategy further. The UK-based group is a leading online gaming operator with a portfolio of omni-channel cross-sell opportunities, consisting of land-based gaming, online sports betting, online casino, poker, bingo, daily fantasy sports, and free-to-play games. Its assets will provide Bally's with a formidable platform for growth as a digital-first leader in global gaming entertainment.

The US casino entertainment enterprise had entered into a credit agreement for senior secured credit facilities partly to finance Gamesys' acquisition price, partly to repay its debts and those incurred through the merger. The company's reacquisition of ordinary shares in the fourth quarter, which amounted to $87m, also contributes towards its net loss.

Q4 Mirrors Annual Financials

Bally's recorded strong results for its Q4 financial report, and like its annual financials, there was a significant net loss.

Revenue for the quarter amounted to $548m, which is $430m more than the final quarter of 2020. An adjusted EBITDA of $119m indicates an increase of $98m year-on-year.

The net loss compared to the same period in 2020 was also higher by $20m, having totaled $115m.

Bally's CEO, Lee Fenton commented on the report saying: "Our quarterly results represent the first full quarter of the consolidated Bally's group, including our Casinos & Resorts, International Interactive and North America Interactive segments.

"During the quarter, we made significant progress on integration of our acquired assets, defining our strategic goals for 2022, and deploying capital strategically, including progress in growth projects in Lincoln, Atlantic City, and Kansas City. Additionally, we repurchased $87m of our common shares during the quarter."

According to the company's estimates for the current fiscal year, revenue is expected within the range of $2.4bn and $2.5bn. The forecast for adjusted EBITDA is between $560m and $580m.