The financial results of casino and racetrack operator Penn National Gaming for the three months and year ending 31 December 2021 have recently been published.
Highlights show revenue reaching $1.6bn, which is an increase of $545.1m year-on-year; this increase, compared to 2019, is $231.3m. In total, net income for the quarter stood at $44.8m, showing a net income margin of 2.8%; this is in comparison to net income of $12.7m and net income margin of 1.2% for the previous year.
Earnings before interest, taxes, depreciation, amortisation, and restructuring or rent (EBITDAR) costs totalled $480.5m, again showing an increase but this time of $115.1m and $81.1m against 2019 results. At an adjusted rate, the EBITDA came out at $369m, an increase of $113.1m each year and $65m versus 2019. As a percentage, this adjusted figure shows a margin of 30.6% compared to 35.6% last year and 29.8% in 2019.
Jay Snowden, President and CEO, commented: “I am pleased to report a strong finish to another transformative year for Penn National. Our fourth-quarter revenues of $1.6bn and adjusted EBITDAR of $480.5m exceeded both 2020 and 2019 levels as our operating teams continue to deliver impressive results despite the ongoing pandemic.”
The operator saw strong property level performances across all segments for the majority of the quarter, with a few moments of decrease due to the impact of pandemic variants.
Penn National opened its fourth casino, Hollywood Casino Morgantown, in the Commonwealth of Pennsylvania, which makes a total property count of 44 across North America. This latest $111m casino is built with the future in mind and carries new technological advances such as a cardless, cashless, contactless, ‘mywallet’ experience.
With technology a key investment area for Penn National, the company is looking to improve its marketing capabilities with the mychoice app. This platform allows for communication with its customers in a more efficient way, with downloads increasing 23% for Q4 2021.
Snowden added: "As I think about the future of Penn National, I am immensely excited about our growth trajectory as we continue to execute on our omni-channel and media strategy, and realise the benefits of several noteworthy accomplishments."