Penn National Q4 revenue down 23% to $1.02bn; but Barstool Sports flying
Penn National Gaming's Q4 2020 revenue was down 23% year-on-year to $1.02bn, financial results that demonstrate visible resilience during the COVID-19 pandemic.
For the full year 2020, Penn National generated $3.58bn in revenue, a sharp 32%, with land-based gaming heavily impacted by the pandemic.
Revenue was bound to fall during such a turbulent 12-month period but online success has helped change the make-up of Penn National’s balance sheet.
Although the operator’s Q4 and FY earnings were below expectations, Penn National’s stock was up 3% after publishing its report, sitting at around the $112.20 mark.
With Q4 revenue still topping $1bn, Q4 net income was also up to $12.7m, from a loss of $92.9m for the corresponding period.
Adjusted EBITDA for Q4, however, was down 16% to $255.9m. Full year EBITDAR fell 32% to $1.09bn.
Yet the operator was able to draw on several positives boding well for its long-term future, focusing on its transition to online gaming, as well as its mychoice customer loyalty program.
Paricularly notable, though, was Penn National’s $163m acquisition of a 16% stake in Barstool Sports, with its Barstool branded sportsbooks now exceeding expectations.
Penn National CEO Jay Snowden said: “Despite our challenges, the company has continued to execute on its long-term strategy by re-evaluating and re-imagining our operational norms, and product offerings, while accelerating our digital transformation.
“Our investment in Barstool Sports provides us with a fully integrated media platform to support our evolution from the nation’s largest regional gaming operator to the best-in-class omnichannel provider of retail and online gaming, and sports betting entertainment.”
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
