Bally's Fast Deal Gives Gamesys Over 27% Profit Growth
The Gamessys Group announced that it earned 23. 8 million pounds. Total revenue for the reporting period was £197.8m, up 27.3% from the first quarter of 2020.
However, costs significantly reduced Gamesys' revenue. Distribution costs amounted to £107.7m, while administrative costs reached £58m. The £800,000 severance pay and £1.9m operating expenses resulted in a total loss of £168.4m for the company. £4.5m in tax expense did not impact Gamesys' bottom line.
Despite the significant costs, the operator's financial condition eventually showed a positive balance. Analysts attribute the growth of indicators to the imminent merger of Gamesys with the large Bally's brand. As part of this agreement, Bally's will pay $25.46 per share of the company. The entire process of the transaction will be carried out with the participation of a subsidiary of Bally's Premier Entertainment. It is she who is entrusted with the task of negotiating and formalizing the acquisition.
The agreement will also see Robson Reeves, Chief Operating Officer of Gamesys, and Jim Ryan, a non-executive director, join Bally's Board of Directors. Significantly, last month Bally's raised $671.4 million in a share offering to raise funds to fund the deal.
Gamesys Chairman Neil Gulden said earlier that the merger with such an established gaming brand would enable operator to reach a qualitatively new level. According to him, this transaction provided a record high price for Gamessys securities, which has never happened before.
Recall that Microgamingcelebrates the company's 20th anniversary on the Isle of Man.