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Penn National revenue grows to $1.27bn in Q1 as online GGR rockets


Land-based and online operator Penn National Gaming has published its results for the three months to 31 March 2021, showing that it generated $1.27bn in revenue for the quarter, up 14.2% from Q1 2020 when the operator was hit by venue closures.

Gaming operations generated $1.08bn of the total revenue figure, up 19.8% year-on-year, while food, beverage, hotel and other revenue sources brought in $192.9m, down 9.5%.

By region, the Northeast segment brought in the most revenue at $570.9m, up 9.6% year-on-year, followed by the South segment at $295.9m, up 32.5%, the Midwest segment at $234.7m, up 2.9%, and the West segment, which brought in $96.6m, down 23.7%.

Other revenue, including the operator’s standalone racing operations, its live and televised poker tournament series and its online arm, Penn Interactive, brought in revenue of $87.9m, up 333.0% year-on-year.

The operator said that its Barstool Sportsbook, which first launched in ­­Pennsylvania in September in association with sports media company Barstool Sports, has since registered over 400,000 customers and generated over $660m in handle, for more than $61m in gaming revenue.

Penn said it plans for the online sportsbook to be live in 8 states by football season and in at least 10 states before the end of the year.

Total operating expenses for the quarter came to $1.06bn, including $528m in gaming expenses, $326m in general and administrative costs and $123m in food, beverage, hotel and other expenses. Total costs were down 36.9% compared to the $1.68bn paid in Q1 2020.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came to $336.6m, up 117.4% from $154.8m in Q1 2020.

Depreciation and amortization cost the business $81.3m, leaving a total operating income of $216.5m, compared to an operating loss of $560.6m in Q1 2020.

Other income and expenses including interest costs and income from unconsolidated affiliates left the operator with total other expenses of $105.0m, leaving an income before taxes of $111.5m.

After taxes of $20.6m, the business was left with a profit of $91.0m, compared to a $608.6m loss in Q1 2020, and up significantly from a $41.0m net income in Q1 2019.

“With a very strong start to 2021, our goal is to continue to disrupt the gaming industry and position Penn National for ongoing growth through unconventional and fresh approaches,” said Jay Snowden, president and chief executive of Penn National Gaming.

“The broader acceptance of sports betting and the greater consumer adoption of technology, which was accelerated by the ongoing pandemic, have been some of the key drivers behind our strategic initiatives.”

“Looking ahead, I am confident that Penn National will look significantly different in the next three to five years than it does today as we remain committed to breaking from the conventional wisdom in terms of how we operate and engage our customers,” Snowden said.