Despite dealing with hurricanes and COVID, Penn National Gaming Inc. reported revenue of $1.51 billion in the third quarter.
In the report, released Thursday morning, the Wyomissing-based company said net income for the period that ended Sept. 30 was $86.1 million, or 52 cents per diluted share.
The results fell short of Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research for The Associated Press was for earnings of 84 cents per share. Analysts had expected $1.5 billion of revenue.
The revenue was an increase of $382.1 million over the year. Net income was down $55.1 million from the third quarter of 2020, but was up by $42.4 million for the same period of 2019.
Adjusted earnings before interest, taxes, depreciation, amortization and restructuring or rent costs —or EBITDAR — was $480.3 million, an increase of $27.7 million year-over-year and $72.4 million versus 2019. EBITDAR is used to measure financial performance by businesses, such as restaurants or casinos, that have unique rent costs.
In a statement that accompanied the earnings report, Penn National President and CEO Jay Snowden said he was pleased by the continued expansion of the Barstool Sportsbook app just before the start of football season along with the opening of the Hollywood Casino York in August and the unveiling of the company’s cashless, cardless and contactless — also known as 3Cs — technology across the properties.
“We also continued to generate revenues and EBITDAR significantly above 2019 levels, despite exogenous events that had a one-time impact on our quarter,” Snowden said. “While July was a record month, the second half of August and September was impacted by Hurricane Ida and regional flare-ups of the delta variant, which reduced property adjusted EBITDAR and adjusted EBITDAR margins by an estimated $30 million and 85 basis points, respectively.
“As the operating environment has normalized, we have seen improved results in October,” Snowden said.
Another milestone in the quarter was the closing of Penn National’s acquisition of Toronto-based Score Media and Gaming on Oct. 19.
“Combined with the power of Barstool Sports, we are now well positioned to be North America’s leading digital, entertainment, sports content, gaming, and technology company,” Snowden said.
The Hollywood Casino Morgantown in Caernarvon Township is still expected to open by the end of the year, though no specific date was given. Snowden said the company is accepting applications for 375 jobs at the casino.
Source: Berkshire mont
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