Bally’s posted revenue of $548.2 million for the first quarter of 2022, up significantly year-over-year due to the addition of a number of acquisitions, including Gamesys.
Revenue increased by 185.1% compared to the first quarter of 2021, which was before the completion of Bally’s £2.0 billion merger with online games operator Gamesys, which has closed in October 2021.
Gaming revenue was $463.7 million. This is a 198.6% year-over-year increase.
Revenue from retail, entertainment and other sources of revenue totaled $33.6 million, just over three times the amount recorded in the first quarter of 2021. Revenue from hotels doubled year-on-year to 26 .9 million. Food and beverage revenue accounted for the remaining $23.9 million, an increase of 54.7%.
“Results from our casinos and resorts were strong as the US consumer returned to our properties as US Covid restrictions were lifted,” Fenton said.
Breaking down revenue by business division, casino and resort revenue accounted for $279.9 million of the total. Lee Fenton, CEO of Bally’s, said this was due to properties reopening after the pandemic.
Bally’s international interactive division – made up mostly of the former Gamesys business – had revenue of $253 million, and the North America Interactive division brought in $15.2 million.
“International Interactive revenue declined 1% year-on-year at constant currency due to tighter consumer spending in the UK which was offset by the strong performance of our activities in Asia,” continued Fenton. “North America Interactive continued to invest in the rollout plan which accelerated this month with the launch of our foundational 2.0 technology stack in Arizona yesterday.”
Operating expenses were $525.7 million, up 222.9% from the first quarter of 2021. Games generated the most costs, at $219.2 million, up of 363.9%.
Advertising, general and administrative expenses were $181.6 million, an increase of approximately $100 million year-over-year. Depreciation and amortization charges increased by $66 million to $78.8 million.
The remaining $46 million consisted of hotel, food and beverage, retail and entertainment, and other operating expenses.
After expenses, operating income was $22.5 million, down 23.5% year-on-year.
Other costs affected him significantly. Interest expense was $45.8 million, an increase of 120.4%, while the adjustment cost on bargain purchases was $107,000. There was no comparable figure for the latter cost.
However, other income, including interest income of $19.7 million, slightly offset this.
This means the operator made a pre-tax loss of $3.6 million. After a $5.5 million tax benefit, net income for the quarter was $1.8 million, $12.5 million more than the $10.7 million loss in the first quarter of 2021.
Earlier today, Bally’s rejected a $2.07 billion takeover bid from investment firm Standard General’s, which was submitted in January.