Penn National Q2 2020 Earnings Report
Key Takeaways
Penn National Gaming reported a challenging second quarter due to the COVID-19 pandemic, with significant revenue decline and a net loss. However, reopened properties showed strong performance, and the company is optimistic about the upcoming launch of the Barstool Sportsbook app.
Revenues for reopened properties decreased 6% compared to the prior year period, while adjusted property EBITDAR at reopened properties increased 33%.
The company ended the quarter with over $1.2 billion of cash.
The Barstool Sportsbook mobile app launch remains on track for the third quarter.
Hollywood Casino branded real-money iCasino product in Pennsylvania continues to grow rapidly, with quarterly sequential revenue growth of 108% in the second quarter.
Penn National
Penn National
Penn National Revenue by Segment
Forward Guidance
Penn National anticipates that a meaningful portion of the margin improvements realized since properties reopened will be recurring. They are working to introduce cashless, cardless, and contactless technology to casinos. Construction is anticipated to resume later this year on both Category 4 projects in Pennsylvania, which are expected to open in the second half of 2021.
Positive Outlook
- meaningful portion of the margin improvements realized since our properties reopened will be recurring
- working closely with regulators in several jurisdictions to introduce cashless, cardless, and contactless technology to our casinos, which we believe will increase safety and provide improved service while delivering additional efficiencies and accountability
- anticipate resuming construction later this year on both of our Category 4 projects in Pennsylvania, which we expect will open in the second half of 2021
- remain on schedule to launch what we believe will be a best-in-class sports betting product in September
- official data access agreements in place with the NFL, MLB and the NBA, which will allow us to provide an exciting variety of in-game betting opportunities for our sports betting customers
Challenges Ahead
- it may be several months or longer before we’re able to resume full operations at our properties
- some team members remain furloughed given the ongoing capacity restrictions and limited amenities at our properties
- visitation has yet to return to pre-COVID levels, in large part due to state mandated capacity restrictions and limited amenities
- entire property portfolio closed due to the COVID-19 pandemic
- unprecedented challenges for our Company