Penn National reports impressive third-quarter results
Penn National Gaming has revealed that it has reduced its debt by nearly US$100 million in the third quarter of the year.
US.- Penn National Gaming, one of the biggest operators in the US, has announced that during the third quarter of the year it has achieved good results. Revenues in the three-month period totalled US$1.35 billion, which is an increase of US$564.8 million when compared to the previous year. The company has also reduced its debt by US$100 million.
Net income in the third quarter was US$43.7 million and a net income margin of 3.2%. This is higher than the US$36.1 million and 4.6% registered during the previous year. Adjusted EBITDA was US$311.6 million, an increase of US$81.9 million year-over-year.
Traditional debt decreased by US$97.2 million during the quarter, principally due to repayments under senior secured credit facilities, Penn National Gaming said.
Timothy J. Wilmott, Chief Executive Officer, commented: “Our results for the quarter reflect the consistency of the consumer that we have seen over the last year. We continue to make refinements to our marketing reinvestment strategy in lower worth segments of our database, which has driven profitability but impacted revenue. We remain confident in our ability to prudently deploy our promotional dollars and believe there is more opportunity in our targeted marketing effort. As a result, we have reaffirmed fourth-quarter Adjusted EBITDAR guidance to be unchanged from our implied fourth-quarter guidance but have lowered our revenue guidance for the period. Our fourth-quarter guidance highlights our focus on generating profitable revenues and our ability to grow industry-leading gaming tax Adjusted EBITDAR margins.”
iGaming and sports betting
“In the third quarter, we continued to expand our sports betting operations with the opening of a retail sportsbook at Ameristar Casino Council Bluffs in Iowa and two retail sportsbooks in Indiana, one at Hollywood Casino Lawrenceburg and one at Ameristar Casino East Chicago,” said Mr Wilmott.
“Earlier this month we also opened our retail sportsbook at the Meadows Casino near Pittsburgh, Pennsylvania. One of our skin partners has also recently launched online sports betting operations in West Virginia and Indiana and should be live in Pennsylvania soon. Separately, we were very excited to launch our real money iGaming platform in Pennsylvania. We are very encouraged by early market share results from these operations and are excited about the new growth opportunity. The combination of our greater than 5 million active mychoice player database and our industry-leading regional casino footprint positions us well to capitalize on the rapidly expanding sports betting and iGaming markets in a way that maximizes shareholder value.”
