A swift deal with Bally's has provided Gamesys with a more than 27% increase in profits

Gamesys Group has reported that it earned £23.8m in the first quarter of 2021. Total revenue for the period was £197.8m, up 27.3% on the first quarter of 2020.

However, costs have significantly reduced Gamesys revenue. Distribution costs amounted to £107.7m, while administrative costs hit the GBP58m mark. The £800,000 severance and £1.9m of operating costs resulted in a total loss to the company of 168.4m GBP. The GBP4.5m in tax expenses did not affect Gamesys' net profit totals.

Despite the substantial costs, the operator's financial position ended up with a positive balance of play double bubble slot. Analysts attribute the increase to Gamesys' imminent merger with major brand Bally's. As part of the agreement, Bally's will pay $25.46 for each share in the company. The entire transaction process will involve Bally's Premier Entertainment subsidiary. It is she who is tasked with negotiating and formalising 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. Importantly, last month Bally's raised $671.4m through a flotation to raise funds to finance the deal.

Gamesys chairman Neil Goulden previously said that the merger with such an established brand in the gambling industry would take the operator to the next level. According to him, the deal has provided a record high value of Gamesys securities, which has never been done before.

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