Penn National Gaming posts good first quarter performance
Operator Penn National Gaming reported a 57.1% revenue increase to US$1.28 billion as it gets ready to enter its 19th US jurisdiction.
US.- Penn National Gaming (PNG) has recently acquired Greektown Casino Hotel with Vici Properties. The US$1 billion purchase allows it to enter its 19th US jurisdiction, while it posts great first quarter results.
The operator recorded a 57.1% revenue increase to US$1.28 billion and operating income of US$182.4 million (5.9% up). However, net income dropped 9.6% to US$41 million.
Adjusted EBITDA jumped 61.3% to US$391.4 million. Still, the figure dropped to US$183.5 million considering lease payments, representing a 44.8% boost from 2018’s.
PNG CEO’s take
“Despite weather-related impacts to several properties during the first quarter, we’re pleased to have met our adjusted EBITDAR guidance. It comes after a one-time adjustment of US$3.1 million for expenses related to a customer loyalty point liability true-up related to prior periods,” Timothy Wilmott, CEO of PNG, said of the firm’s performance. “This accomplishment highlights our property-level management team’s consistent ability to maintain or increase margins, even in a challenging revenue environment.
“In addition, we closed our accretive acquisition of Margaritaville in Bossier City, Louisiana in early January. We now expect to close our accretive acquisition of Greektown Casino-Hotel in Detroit, Michigan, by the end of May.
“Our US$300 million acquisition of the operations of Greektown provides us entry into an industry-leading 19th jurisdiction. It also adds another stable regional gaming market to PNG’s already diverse property portfolio. Notably, Greektown will have the largest single property database in our loyalty program.
“We’ll use a combination of cash on hand and debt to fund the transaction. We expect to close the transaction before the end of this month.
“Our development projects in Pennsylvania, including the US$120 million Hollywood Casino York and the US$111 million Hollywood Casino Morgantown, remain on track.
“The construction timetable for both facilities may be 12-18 months following all requisite approvals, including final licensing by the Pennsylvania Gaming Control Board.”
