Sep 30, 2020

Penn National Q3 2020 Earnings Report

Reported strong third quarter revenues and record Adjusted EBITDAR, driven by property performance and the successful launch of the Barstool Sportsbook app.

Key Takeaways

Penn National Gaming reported Q3 2020 revenues of $1.13 billion, net income of $141.2 million, Adjusted EBITDAR of $452.6 million, and Adjusted EBITDA of $343.6 million. The company saw strong performance across its properties and a highly successful launch of the Barstool Sportsbook app.

Generated revenues of $1.13 billion and Adjusted EBITDAR of $452.6 million.

Ohio and Indiana properties led the way for the Northeast segment, and each property in the South region, save L’Auberge Lake Charles, delivered double-digit Adjusted EBITDAR growth.

Launched the Barstool Sportsbook app in Pennsylvania, which broke records for the most downloads ever for the launch of a new mobile sportsbook.

The app generated total handle of $78 million across 30,000 first-time depositors in the first 37 days of operation.

Total Revenue
$1.13B
Previous year: $1.36B
-16.6%
EPS
$0.93
Previous year: $0.38
+144.7%
Adjusted EBITDA
$344M
Previous year: $312M
+10.3%
Adjusted EBITDAR
$453M
Previous year: $408M
+11.0%
Adjusted EBITDAR margin
40.1%
Previous year: 30.1%
+33.2%
Gross Profit
$602M
Previous year: $596M
+1.0%
Cash and Equivalents
$1.87B
Previous year: $407M
+360.3%
Free Cash Flow
$328M
Previous year: $162M
+101.9%
Total Assets
$14.8B
Previous year: $14.3B
+3.5%

Penn National

Penn National

Forward Guidance

The company anticipates introducing Barstool-branded retail sportsbooks and launching the Barstool Sportsbook app in Michigan, subject to regulatory approval. They are also working on cashless technology and Barstool-branded entertainment destinations.

Positive Outlook

  • Introducing Barstool-branded retail sportsbooks across the portfolio.
  • Potential launch of Barstool Sportsbook app in Michigan.
  • Introducing cashless technology to improve efficiency and customer service.
  • Developing new Category 4 casino development projects in Pennsylvania.
  • Actively advocating for the passage of sports betting in states where it is not yet approved.

Challenges Ahead

  • Business decisions made in response to restrictions and evolving customer trends.
  • Restrictions in place and evolving customer visitation and volume trends.
  • Challenging year with difficult business decisions.
  • Potential delays in regulatory approvals for new ventures.
  • Uncertainties related to the ongoing COVID-19 pandemic and its impacts.