As the company reports its financial results for the six months ending June 30, 2021, Gamesys Group has praised its “excellent financial performance and operational execution.”
Revenue climbed by 40 percent to £398.8 million (2020: £340 million), with the UK, Gamesys’ largest geographical market, accounting for £237.3 million, up 20.2 percent from £197.4 million. Over the first half of 2020, the average monthly active players increased by 10 percent.
Revenue in Asia climbed by 29.4 percent to £128 million (2020: £98.9 million), which the company describes as a “record performance” based on “well-established momentum and extremely strong comparatives.”
Revenue in Europe fell 29.3 percent to £24.3 million (2020: £34.4 million) as a result of regulatory measures in a number of markets, including Spain, Germany, and Sweden.
Gamesys claims that its standout result in the rest of the globe market, whose revenue dipped fractionally to £9.2 million (2020: £9.3 million), was Canada, which saw triple-digit increase.
The company also admits that New Jersey is its largest market in the sector, where it has “invested in headcount and the technology platform” to support operations as it seeks to establish “a foundation for sustainable growth.”
Group-wide net income declined 40 percent year on year to £14 million (2020: £23.3 million), owing principally to a shift in the UK corporation tax rate from 19 to 25 percent, with adjusted EBITDA up 16 percent from £95 million to £110.3 million.
In the future, Gamesys claims it will be “focused on providing entertainment, recreation, and community” to a record number of players, as it strives to “continue to significantly expand our player base” in order to achieve sustainable and long-term growth.
Lee Fenton, CEO of Gamesys said: “The group has delivered another set of excellent results for the first half of 2021 with revenue growth of 17 per cent and adjusted EBITDA increasing by 16 per cent during the period.
“This performance reflected significant double-digit revenue growth in our key markets of the UK and Asia and our continuing strong cash flow has seen leverage reduce further.
“We are fully focused on operational execution, product innovation and the enhancement of safer gambling initiatives across all of our markets and we remain fully confident in the group’s ability to deliver long-term sustainable growth.”
Gamesys is awaiting the completion of a $2 billion merger with Bally’s Corporation, which the latter describes as a “transformational step” on its way to “becoming a leading integrated, omni-channel gaming company with a B2B2C business.”
Last month, all parties received the required votes for all shareholder approvals, bringing the proposed company combination one step closer. The acquisition is expected to close in the fourth quarter of 2021, subject to usual closing conditions, including regulatory approval.