The company posted high third-quarter results, despite the ongoing social constraints and closures. Moving to cashless technologies in brick-and-mortar casinos, as well as the creation of a new growth channel are some of the highlights.
The entertainment industry has been one of the most affected by Covid-19, which forced the shutdown of physical locations and the introduction of operating restrictions after reopening.
Gaming companies in the United States have seen a plunge in their revenues since March amid closures followed by containment measures that might vary largely from state to state. According to the American Gaming Association, 110 casinos are currently closed, while 886 are functioning under limitations.
Penn National Gaming Posts High Net Income Increase Amid Covid-19 Uncertainty
Despite the turbulent times, Penn National Gaming is holding a strong position and is on the path of recovery following the decrease in profit during the first quarter of 2020.
In 3Q2020, the company posted all-time record earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR), as well as a record EBITDAR margin.
Moreover, net income surged from $43.7 million in 3Q2019 to $141.2 million in 3Q2020, which corresponds to a 223% increase. Despite capacity limitations and some properties remaining closed, Penn National Gaming was able to adapt to the new environment and show positive results.
Apart from the ongoing Covid-19 restrictions, the company faced a number of other challenges, such as Hurricane Laura on L’Auberge Lake Charles, the late-quarter reopening of Tropicana Las Vegas, and the ongoing temporary closure of Zia Park in New Mexico.
Barstool Sportsbook Enjoys Record Launch Numbers
On 18 September, the company released the Barstool Sportsbook app in Pennsylvania, which enjoyed extreme interest among online players and reached a record number of downloads.
“As of October 24th, nearly 48,000 people have registered through the app in Pennsylvania alone and, over the course of the first 37 days of operation, the app generated a total handle of $78 million across 30,000 first-time depositors.”Jay Snowden, president and chief executive officer, Penn National Gaming
Snowden added that these figures were achieved with very low external marketing expenses and added that Penn’s partner Barstool Sports attracted a big part of its growing audience to the new sports betting product. This is clear also from the fact that more than 39% of users placed wagers on bets promoted by the Barstool personalities, Snowden further said.
The success of Barstool Sportsbook has boosted the confidence of Penn National Gaming in its ability to gain a strong position in the sports betting and iCasino segment.