American land-based casino operator Bally’s Corporation has announced that it soon expects to officially herald an up to eight-fold increase year-on-year in second-quarter consolidated revenues to as high as $268 million.
The Rhode Island-headquartered company used an official Monday press release to declare that the anticipated improvement from the $28.9 million it chalked up for the same three-month period last year is due to the ‘better than expected operating performance’ of its network of 14 land-based casinos and ‘interactive businesses’ following the significant disruption of the coronavirus pandemic.
Bally’s Corporation, which was known as Twin River Worldwide Holdings Incorporated until undergoing a name-change late last year, disclosed that it also envisions recording a commensurate swell in adjusted second-quarter earnings before interest, tax, depreciation and amortization to approximately $84 million. The operator stated that these optimistic forecasts mean that it will now not look ‘to issue incremental common equity’ or draw on any previously-disclosed commitments in order to fund its envisioned $2.2 billion acquisition of British iGaming firm Gamesys Group.
Read a statement from Bally’s Corporation…
“Bally’s Corporation continues to evaluate investment options with potential strategic partners and such investment is not necessary to fund the Gamesys Group acquisition. Closing of the Gamesys Group transaction, which is subject to customary conditions including regulatory approval, is expected to take place during the fourth quarter.”
Bally’s Corporation is responsible for properties such as Bally’s Atlantic City and Eldorado Resort Casino Shreveport and recently raised in the region of $671.4 million via a public stock offering to help complete its purchase of London-listed Gamesys Group. This acquisition is to subsequently give the American company control over the online casino operator responsible for domains including VeraJohn.com, InterCasino.co.uk and RainbowRichesCasino.com.
The growing casino operator furthermore pronounced that the enthusiastic second-quarter forecasts will now allow it to begin negotiations on refinancing a previously-arranged bridge loan and debts associated with the coming Gamesys Group purchase ‘through one or more capital market transactions’ that could include ‘public or private bond offerings and a company-wide bank credit facility.’
Bally’s Corporation’s has been on something of a buying spree of late courtesy of deals to acquire daily fantasy sports firm Monkey Knife Fight, online free-play games developer SportCaller and digital technology and services enterprise Bet.Works Corporation while failing in a $90 million bid for the World Poker Tour (WPT) poker brand. The company earlier asserted that the purchase of Gamesys Group is destined to give it ‘one of the broadest portfolios in the market of omni-channel cross-sell opportunities’ with a significant presence in the land-based gaming, online casino and sportsbetting, bingo, poker, daily fantasy sports and free-play verticals.