Jun 30, 2021

Penn National Q2 2021 Earnings Report

Penn National reported strong second-quarter results driven by exceptional performance across its core gaming business and positive contributions from Barstool Sports.

Key Takeaways

Penn National Gaming reported a strong second quarter with revenues of $1,545.8 million, net income of $198.7 million, and adjusted EBITDAR of $586.6 million. The company's performance was driven by strong demand from its core gaming business and an efficient cost structure. Penn National also announced its acquisition of Score Media and Gaming.

Revenues increased by $1.240 billion year over year and $223 million versus 2019.

Net income was $198.7 million, with a net income margin of 12.9%.

Adjusted EBITDA was $470.1 million, an increase of $549.4 million year over year and $153.6 million versus 2019.

Adjusted EBITDAR was $586.6 million, an increase of $562.1 million year over year and $180.1 million versus 2019.

Total Revenue
$1.55B
Previous year: $306M
+406.1%
EPS
$1.17
Previous year: -$1.69
-169.2%
Adjusted EBITDAR margin
37.9%
Gross Profit
$776M
Previous year: $131M
+494.4%
Cash and Equivalents
$2.27B
Previous year: $1.24B
+82.8%
Free Cash Flow
$285M
Previous year: -$129M
-321.8%
Total Assets
$15.1B
Previous year: $14.3B
+5.3%

Penn National

Penn National

Forward Guidance

Penn National expects to generate meaningful EBITDA contributions beginning in 2023, inclusive of significant planned investments in marketing, product and additional state launches.

Positive Outlook

  • Barstool Sports' creative content provides a competitive advantage for mobile sportsbook.
  • Exclusive bets and social media reach provide low-cost customer acquisition.
  • Barstool provides brand leverage to drive omnichannel strategy.
  • Plan to open/rebrand five more Barstool Sports retail sportsbooks by the end of the year.
  • Making progress on the build out of stand-alone Barstool-branded sports bars.