Penn National sees value in targeted marketing as Q3 revenue rises
Penn National Gaming generated revenue of $1.35bn for Q3 2019, a 72% increase year-on-year.
The operator reported net income of $43.7m, a rise of 5%, while adjusted EBITDA was $311.6m, up 36%.
During the period, Penn National paid $222.6m to real estate investment trusts under triple-net leases, an increase of 93%.
Traditional debt decreased 2% to $2.45bn, with the operator attributing this to repayments under its senior secured credit facilities.
Penn National launched its retail sportsbooks in Iowa, Indiana and Pennsylvania during the quarter.
Earlier this month, the operator signed a deal with NetEnt, giving it access to the supplier’s portfolio of online casino games for the state of Pennsylvania.
This deal followed news of the completion of Penn National’s acquisition of Pinnacle Entertainment for $2.8bn, which has contributed to Penn National’s revenue growth.
Timothy Wilmott, Penn National CEO, said: “Our results for the quarter reflect the consistency of the consumer we have seen over the last year.
“We continue to make refinements to our marketing reinvestment strategy in lower worth segments of our database, which has driven profitability but impacted revenue.
“We remain confident in our ability to prudently deploy our promotional dollars and believe there is more opportunity in our targeted marketing effort.”
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