Penn National makes profit for quarter
Despite pandemic, company records a profitable quarter
Despite closures due to the coronavirus pandemic, Penn National Gaming Inc. reported a profitable fourth quarter on Thursday.
The Wyomissing-based casino operator said it had net income of $12.7 million for the quarter that ended Dec. 31, or 7 cents per diluted share. Penn National reported a loss during the same period of 2019.
Analysts surveyed for The Associated Press by Zacks Investment Research predicted earnings of 21 cents per share for the quarter.
Revenue was $1.03 billion in the period, which also fell short of Street forecasts. Seven analysts told Zacks for the AP they expected $1.07 billion.
Penn National President and CEO Jay Snowden congratulated company employees for persevering during a tough year that included both the pandemic and two hurricanes that affected properties along the Gulf Coast.
“As we reflect on 2020, I couldn’t be prouder of the resiliency and determination shown by our corporate and property team members during what was undoubtedly one of the most challenging years for any of us from a personal and professional standpoint,” Snowden said in a statement. “We have endured unprecedented changes to our business, created and implemented enhanced safety protocols for our team members and guests and withstood natural disasters that brought damage to several of our southern properties and left many of our team members displaced in the midst of a global pandemic.
“Yet, despite these challenges, the company has continued to execute on its long-term strategy by re-evaluating and re-imagining our operational norms and product offerings while accelerating our digital transformation.”
Penn National recently observed the one-year anniversary of its alliance with Barstool Sports. Snowden said the deal has helped expand the company’s offerings, both digitally and at brick-andmortar sites. The company has also successfully expanded its loyalty program to all of its platforms.
“Our investment in Barstool Sports provides us with a fully integrated media platform to support our evolution from the nation’s largest regional gaming operator to the best-in-class omnichannel provider of retail and online gaming and sports betting entertainment,” he said. “In addition to the successful launches of our Barstool Sportsbook app in Pennsylvania and Michigan, we have now fully implemented our industry leading mychoice reward program across all our properties and online channels.”
Adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs — or EBITDAR — were trending ahead of forecast before COVID-19 related closures in Illinois, Michigan, and Pennsylvania and increased restrictions in several other states began in mid-November. Adjusted EBITDAR was $365.4 million, down 9% from the 2019 fourth quarter.
For the year, Penn National reported a loss of $669.5 million, or $5 per share. Revenue was reported at $3.58 billion.
Penn National Gaming shares have climbed 26% since the beginning of the year. The stock has more than tripled in the last 12 months. In trading Thursday, Penn National shares are up 5.4% to $115.
Morgantown update
Construction on the Hollywood Casino Morgantown has resumed and opening is scheduled for late 2021. It is one of two Category 4 casinos Penn National plans to open this year. The other is near York.
“We have utilized this additional time to re-imagine our offerings at these properties to incorporate a new Barstool Sportsbook as well as the technology for cashless, cardless, and contactless features, pending regulatory approval,” Snowden said.