Bally’s revenue up 185% for Q1 2022, rejects Standard General offer
Bally’s Corporation has reported $548.3m in revenue for the first quarter of 2022, up 185% from the same period in 2021 when revenue totalled $192.3m.
Adjusted EBITDA also rose to $115m, an increase of 119% from Q1 2021.
Despite this revenue boost for the quarter, income from operations has dropped year-on-year to $22.6m.
Bally’s has also seen income from its operations margin fall by 11% from Q1 2021, down to 4%.
The company cites lower year-on-year income as a symptom of tighter consumer spending in the UK, continued investment for the launch of new tech initiatives and the persistent uncertainty of foreign exchange movements.
After publishing these financial results, Bally’s laid out its expectations for the year ending 31 December 2022.
The operator hopes to reach year-end revenue in the range of $2.4bn to $2.5bn, and adjusted EBITDA in the range of $560m to $580m.
A lot will depend on how the Covid-19 situation will develop, particularly in Asia, which is arguably Bally’s strongest and most profitable market in unrestricted circumstances.
Bally’s has also announced it is no longer considering Standard General’s proposal to acquire all outstanding shares in the company that it did not already own.
The operator's preference is to initiate a cash tender offer for its shares, an offer that it hopes will involve between $300m to $500m, and be structured in the format of a Dutch auction.
Bally’s CEO Lee Fenton said: "The company has very substantial opportunities before it, including the integration of the Gamesys acquisition, the build-out of Bally's North American interactive business and the continued strategic expansion of our land-based footprint in the US.
“With these opportunities in front of us, we have great confidence in the future as we move forward."