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Mar 31, 2021
Penn National Q1 2021 Earnings Report
Penn National reported first quarter revenues of $1.27 billion and net income of $90.9 million.
Key Takeaways
Penn National Gaming reported record results in Q1 2021, driven by strong performance in the land-based business and the launch of the online Barstool Sportsbook in Michigan and Illinois. The company's mychoice player loyalty program was fully integrated across retail and digital offerings, and Penn National was included in the S&P 500.
Generated first quarter net income margin of 7% and record first quarter adjusted EBITDAR margin of 35%.
Benefited from strong demand at land-based casinos and more efficient cost structure.
Focused on driving profitable online gaming revenue with Q1 launches in Michigan and Illinois.
Integrated mychoice player loyalty program across all retail and digital offerings.
Penn National
Penn National
Penn National Revenue by Segment
Revenue by Segment
Other Revenue
CapyFin.com Forward Guidance
Penn National aims to continue disrupting the gaming industry and position itself for ongoing growth through unconventional approaches, focusing on technology investments and expanding its omni-channel presence. The company is committed to profitable growth and creating shareholder value.
Positive Outlook
- Launching the 3Cs experience throughout the remainder of 2021 at four casinos in Pennsylvania.
- Opening Hollywood Casino York in August and Hollywood Casino Morgantown later this year.
- Closing the Hollywood Casino Perryville acquisition in early Q3 2021, providing market access to a 20th state.
- Featuring a Barstool Sportsbook at each of these properties, highlighting the expanding omni-channel presence.
- Implementation of cashless, cardless, and contactless (“3Cs”) technology will resonate well with our guests, especially the younger demographic.
Challenges Ahead
- Magnitude and duration of the impact of the COVID-19 pandemic on general economic conditions, capital markets, unemployment, consumer spending and the Company’s liquidity, financial condition, supply chain, operations and personnel.
- Disruptions in operations from data protection breaches, cyberattacks, extreme weather conditions, medical epidemics or pandemics such as the COVID-19 (and reoccurrences), and other natural or man-made disasters or catastrophic events.
- The Perryville transaction with GLPI is subject to various conditions, including third-party agreements and approvals, and accordingly may be delayed or may not occur at all.
- Actions to reduce costs and improve efficiencies to mitigate losses as a result of the COVID-19 pandemic that could negatively impact guest loyalty and the Company’s ability to attract and retain employees.
- Impact of significant competition from other gaming and entertainment operations (including from Native American casinos, historic racing machines, state sponsored i-lottery products and VGTs in or adjacent to states in which we operate).