Penn Entertainment posts $1.67bn in revenue and increases profitability
The land-based and online casino operator has recently acquired BarStool sports and more than quadrupled its Q1 net income.
Penn Entertainment (Penn) has released its first-quarter financial report for 2023. The company operates 43 casino properties in 20 states across the US, as well as the Penn Play app. Penn has shown increases in both revenue and net income when compared year-on-year and with the previous quarter’s results.
The company reached revenue of $1.67bn, which is steady growth compared to 2022’s first quarter revenue of $1.56bn. Net Income for Penn shot up 897% from Q1 of last year to $514.4m, with a large increase from the previous quarter, as well.
Revenue includes $28.2m related to Penn’s acquisition of Barstool Sports on 17 February 2023. Also included is $92.3m revenue related to the gross-up of gaming tax reimbursements from third-party skin partners.
The financial report provided comments and insight citing: “Consistent retail performance across most of our portfolio, with revenue growth in Interactive driven in part by Barstool Sports.”
Adjusted EBITDA reached $332.2m, while adjusted EBITDAR was reported at $478.2m, these figures represent a 23.6% and 3.3% decrease, respectively.
In terms of stocks, the report stated: “Our strong balance sheet enabled us to repurchase 1,646,963 shares during the first quarter under our stock repurchase authorisation at an average price of $30.36.”
Recent sports betting launches were mentioned as a strong driver of performance, with Kansas experiencing 7.9% retail revenue growth, Ohio rising 8.1% and Massachusetts rising 14.1%.
Performance in Ontario was the strongest, however, with it being Penn’s top market in North America for both sports betting and iCasino, which will have been driven by Penn brand theScore (Penn agreed to buy Score Media & Gaming in August 2021).
In late April, Penn also launched a rebranded loyalty program that will enhance its Penn Play rewards feature; 26 million customers are currently part of Penn’s reward options.
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