Gamesys Group has released an updated trading report for the first quarter of the year, revealing that net income for the period ended March 31, 2021 was £23.8 million.
“To ensure consistent dissemination of Gamesys financial information, which was published on May 19, 2021 in Bally’s Corporation Shareholder Circular, required for Bally’s shareholder vote to approve the issuance of Bally’s consideration shares in connection with its acquisition of the entire issued and to be issued ordinary share capital of Gamesys,” according to the group.
In March, Gamesys backed a potential $2 billion business merger with Bally’s, but 20 days later, the two revealed that they had reached an agreement on terms for a transaction worth 1,850 pence per share.
Revenue rose 27 percent year over year
Revenue rose 27 percent year over year to £197.8 million (2020: £155.3 million), as mentioned in the company’s April report, which coincided with the agreement of definitive terms.
Total costs and expenditures for the time period were £164.2 million, including $107.7 million in delivery costs, £4.2 million in foreign exchange shifts, and $58 million, £800,000, and £1.9 million in administrative, severance, and transaction-related costs, respectively.
Interest costs of £5.1 million took overall borrowing costs to £5.3 million. Before taxation, net income was £28.3 million, but a £4.5 million tax cost reduced net income to the previously stated £23.8 million.
The merged company will be based in Providence, Rhode Island, and its shares would remain listed on the New York Stock Exchange, according to previous announcements. Following the completion of the project, a request will be made to stop trading in Gamesys shares and de-list the company from the London Stock Exchange.
Lee Fenton, Gamesys’ CEO, will continue in his position in the merged company, with Robeson Reeves, Gamesys’ COO, and Jim Ryan, a non-executive director of Gamesys, joining the board of the US group. Bally’s CEO, George Papanier, will remain a board member and a senior executive in charge of the retail casino market. The agreement is expected to be completed in the fourth quarter.