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Dec 31, 2021
Penn National Q4 2021 Earnings Report
Reported strong Q4 2021 revenues and exceeded expectations in the interactive segment.
Key Takeaways
Penn National Gaming reported strong fourth-quarter results with revenues of $1.6 billion, net income of $44.8 million, and adjusted EBITDAR of $480.5 million. The company's retail operations delivered strong results through sustainable margin improvement and technology upgrades, while the interactive segment exceeded expectations. A $750 million share repurchase program was authorized, and full-year guidance for 2022 was initiated.
Revenues reached $1.6 billion, marking a year-over-year increase of $545.1 million and a $231.3 million increase compared to 2019.
Net income was $44.8 million, with a net income margin of 2.8%.
Adjusted EBITDAR totaled $480.5 million, reflecting a year-over-year increase of $115.1 million and an $81.1 million increase compared to 2019.
The Board of Directors authorized a $750 million share repurchase program.
Penn National
Penn National
Forward Guidance
For 2022, the company is guiding to a net revenue range of $6.07 billion to $6.39 billion and an Adjusted EBITDAR range of $1.85 billion to $1.95 billion. They also anticipate an EBITDA loss of approximately $50 million within their Interactive segment this year.
Positive Outlook
- Penn National is guiding to a net revenue range of $6.07 billion to $6.39 billion for 2022.
- The company is guiding to an Adjusted EBITDAR range of $1.85 billion to $1.95 billion for 2022.
- The Interactive segment is expected to generate lower losses than the previous outlook.
- Mobile launches are anticipated in several new jurisdictions, including Ontario, Maryland, and Ohio.
- Integration of the Barstool Sportsbook into theScore media app is expected in the second half of 2022.
Challenges Ahead
- The company expects an EBITDA loss of approximately $50 million within its Interactive segment in 2022.
- The guidance is subject to risks, uncertainties, and changes in circumstances.
- The ongoing impact of the COVID-19 pandemic could affect the company's liquidity, financial condition, and operations.
- Disruptions in operations from data protection breaches, cyberattacks, or extreme weather conditions could occur.
- The company's ability to access additional capital on favorable terms is uncertain.