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Penn National Gaming reports Q2 revenue increase as it announces theScore acquisition


Penn National Gaming has recorded revenue figures of $1.55bn for the second quarter of 2021, in a half-year report that coincided with the company’s acquisition of Score Media and Gaming.

The revenue generated represents a 406.0% increase on the $305.5m raised during the same period last year, mostly thanks to the easing of pandemic-enforced restrictions, which forced Penn’s properties to close for most of Q2 of 2020.

The Northeast segment, containing properties such as Ameristar, Hollywood Casinos and Meadows Racetrack and Casino, was the biggest contributor to the revenue total with $652.5m – a 535.3% increase from last year. $368.2m came from the South, $294.8m from the Midwest, and $140.4m from the West.

Gaming revenue was up significantly from 2020, rising 403.9% to $1.31bn. Revenue from food, drink and hotels also increased to $240.3m.

Gaming expenses were more than six times higher this year than in 2020, reaching $620.9m. General and administrative costs were $316.5m, food and hotel expenses were $148.6m, while depreciation and amortization costs came to $81.9m.

Operating profit amounted to $377.9m, up from a $165.4m loss the year prior. After accounting for interest and other expenses, Penn National’s net profits for the quarter amounted to $198.7m, up from the $214.4m loss made last year.

Adjusted earnings before interest, taxation, depreciation and amortization came to $470.1m.

Penn National president and CEO Jay Snowden said: “Sequentially improved visitation and length of play across all age segments of our player database led to our record results in the second quarter. Spend-per-visit has remained high since reopening last year, and our overall visitation numbers are encouraging as restrictions continue to be lifted.

“The traditional core gaming customer has reengaged with our properties as vaccines continue to roll out across the country, while the younger demographic’s engagement continued throughout Q2 and into Q3 despite the increased availability of alternative entertainment options. These noteworthy drivers of our revenue growth combined with the changes we have made to our offerings and our expense structure has led to tremendous flow-through and margin improvement.”

The business also announced that it would acquire Canada-based media business and operator theScore in a $2.0bn cash-and-stock deal. Snowden said he plans to migrate Penn’s betting products to a platform currently being built by theScore.

The deal is set to close in the first quarter of 2022.