UK and Asia growth drives 17% H1 revenue rise for Gamesys
London-listed operator reports double-digit rise in adjusted EBITDA and average active players ahead of Bally’s merger
Gamesys Group has reported a 17% year-on-year increase in group revenue for the first half of 2021 to £398.8m. Releasing its H1 financial results on 10 August, the London-listed operator attributed the rise to “good momentum” in its UK and Asian operations during H1. At a divisional level, UK revenue increased by 20% during H1 to £237.3m, while Asian revenue grew by 30% in the same period to £128m. “We are launching new brands into Japan and have expanded our game portfolio with new, internally developed, exclusive titles,” said Gamesys. “Our B2B business in Asia continues to grow supported by increasing features and improvements for our partners.” In contrast, H1 European revenue dropped by 29% to £24.3m, while Rest of the World revenue fell flat at just over 1% in the same period to £9.2m. Gamesys attributed the European decline to a “more challenging” regulatory environment in the German, Scandinavian and Spanish markets, as well as a withdrawal from a number of “peripheral” markets. The operator cited a contraction in smaller markets as offsetting positive revenue growth in the US and causing the reduced revenue in its Rest of the World division. Company adjusted EBITDA rose by 16% to £110.3m, with Gamesys reporting a corresponding 16% rise in average active monthly players per month to 744,807. Gamesys H1 costs and expenditure increased by 22% year-on-year during H1 to £358.6m, while its distribution costs, which includes taxes and licence fees, also rose by 22% over the same period to £221.2m. Administrative costs increased to £114.7m during H1, reflecting an annual increase of 7%. In addition, Gamesys has confirmed the repayment of £100m of its outstanding term loan debts after the end of H1. Gamesys Group CEO Lee Fenton said: “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,” he added.