Penn National Gaming falls short from projections
Casino operator Penn National Gaming failed to meet its US$206 million EBITDA guidance during 4Q.
US.- Penn National Gaming (PNG) revealed its fourth quarter results and showed a disappointing performance despite revenue rising 3.5 per cent to US$769 million. During the last three months of 2017, its EBITDA failed to meet its US$206 million guidance and even 2016’s US$196 million performance as it just reached US$183.3 million.
The result of the poor EBITDA figure was a decrease in shares value, which reacted badly to the report. Nonetheless, PNG CEO Timothy Wilmott celebrated the conclusion of “a successful and active year” for the company, capped off by the acquisition in December of 12 Pinnacle Entertainment gaming venues.
Mr Wilmott further added that the acquisition will be “immidiately accretive to free cash flow” by the second half of 2018 and expects it to boost annueal revenue and earnings by 60 per cent or more.
Regarding the potential PASPA revokation, Wilmott advanced PNG has been “approached by a number of different strategic partners” to capitalise on a potential legal sports betting scenario. However, he stated that the company isn’t paying much atention to legal betting except in “the indirect areas that sports betting brings in just due to increased visitation.”
