Penn National Gaming Beats On Revenue, Raises 2022 Guidance

    Author Stephanie Bédard-ChâteauneufPosted on Categories GamingTags , , , , , , , , , , , , , , , , , , ,

    Penn National Gaming, Inc. (NASDAQ:PENN), a provider of integrated entertainment, sports content and casino gaming experiences., reported higher revenues in the first quarter. Retail operations benefitted from strong volumes and significant database growth

    Strong Performance Across All Segments

    Penn National reported revenue of $1.56 billion for the first quarter of 2022, an increase of 23% over the prior-year period. The consensus estimate was for revenue of $1.52 billion.

    Gaming revenue increased 19.33%, while food, beverage, hotel and other revenue increased 41.5% year-over-year.

    Penn’s Northeast segment led the way with $658.5 million in revenue, followed by the south segment with $341.4 million. The Midwest and West segments earned $282.9 million and $140.9 million, respectively, while Interactive revenue was $141.5 million. Other income was $7.3 million.

    The group reported a net profit of $51.6 million for the first quarter of 2022 and a net profit margin of 3.3%, compared to $90.9 million and 7.1% respectively in the prior-year period. EPS came in at $0.29, $0.12 less than analysts’ estimate of $0.41. Adjusted EBITDA rose 29% year-over-year to $434.6 million.

    Jay Snowden, President and Chief Executive Officer, commented: “Penn National Gaming generated record first quarter results with revenues of $1.56 billion and Adjusted EBITDAR of $494.7 million. These results reflect our continued progress in meeting our strategic objectives. We are growing our active mychoice® database and are seeing early benefits from our technology investments. We are also driving momentum at our Interactive Segment with ongoing sports betting and iCasino growth in the U.S., and the successful launch of mobile sports betting and iCasino in Ontario on April 4th on theScore’s proprietary player account management system (“PAM”) and bonusing engine.”
    Penn National Gaming raised its fiscal 2022 revenue outlook to $6.15 billion – $6.55 billion, versus a consensus of $6.31 billion.

    Successful Launches in Louisiana and Ontario

    The company said the Interactive segment continued to deliver disciplined growth, highlighted by the successful launch of Barstool Sportsbook in Louisiana and theScore Bet in Ontario. Penn National successfully launched theScore Bet mobile app in Ontario on April 4. In Q3 2022, the company plans to transition theScore Bet in Ontario to theScore’s proprietary risk and trading platform, which will allow Penn National to significantly enhance product functionality and capabilities, including expanded betting markets and exclusive betting features.
     
    Penn National remains on track to bring the Barstool Sportsbook to PAM and theScore’s trading platform in Q3 2023, which will provide significant cost and revenue synergy opportunities.

    Author Stephanie Bédard-Châteauneuf
    About the author: Stephanie Bedard-Chateauneuf has over seven years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on consumer stocks, cannabis stocks, tech stocks, and personal finance. She has an MBA in finance.