Penn, Pinnacle report higher profits

Regional gaming growth boost companies’ results

Two casino companies with Nevada ties had improved first-quarter results, including Las Vegas-based Pinnacle Entertainment which reported record net revenue.

Pinnacle, which owns Cactus Pete’s and the Horseshu in Jackpot on the Idaho border, saw revenue increase by 7.5 percent to a record $572.8 million for the quarter that ended March 31.

The company reported net income of $27.3 million, 44 cents a share, compared with $19 million, 31 cents a share, a year earlier.

“Our first-quarter results demonstrate the strongest financial and operational performance in our history, with records set at both a consolidated level and at multiple properties across our portfolio,” Pinnacle CEO Anthony Sanfilippo said.

Company growth was paced by properties in Louisiana, Iowa, Kansas, Illinois and Colorado.

Meanwhile, Wyomissing, Pa.-based Penn National, which operates the M Resort in Henderson, reported net income of $11 million, or 12 cents a share, for the quarter, up from net income of $4.5 million, or 5 cents a share, a year earlier.

Revenue rose 3.6 percent to $664.1 million from $641.1 million.

Year-over-year improvements in regional gaming trends bolstered the first half of the quarter, Penn National CEO Tim Wilmott said.

“We believe Penn National is well positioned to capitalize on the potential stabilization of regional gaming revenue trends,” he said. “And we remain focused on driving efficiencies from our existing properties and maintaining a disciplined approach to marketing and promotional activities.”

Penn also has opportunities managing a tribal casino property near San Diego and a development at Plainridge Park in Massachusetts, scheduled to open June 24.

Penn National shares rose 27 cents, or 1.62 percent, Friday to close at $16.95 on Nasdaq. Pinnacle shares rose 45 cents, or 1.24 percent, to close at $36.73 on the New York Stock Exchange. Contact reporter Richard N.Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find @RickVelotta on Twitter.