WYOMISSING, Pa. — Thursday was a giant, huge day for Penn Nationwide Gaming. The Wyomissing-based proprietor of casinos, racetracks, and on-line and sports activities betting operations, reported second-quarter and first-half 2021 revenues and earnings that surpassed 2020 and 2019 outcomes. As a result of pandemic in 2020, 2019 is the final yr that had actually comparable outcomes.
The actually huge information, nevertheless, is that Penn Nationwide has acquired Rating Media and Gaming Inc., a Canada-based digital media and sports activities betting and expertise firm, for roughly $2 billion in money and inventory. Penn Nationwide will fund the roughly $1-billion money portion of the acquisition utilizing current money on its steadiness sheet.
Including Rating’s built-in media and betting platform and trendy, state-of-the artwork expertise to the large viewers of Barstool Sports activities and its wildly well-liked personalities and content material, Penn Nationwide stated, will probably be creating North America’s main digital sports activities content material, gaming and expertise firm. The corporate anticipates that the acquisition of Rating will present adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation and amortization) accretion by yr two, an incremental $200-million medium time period adjusted EBITDA, and $500 million of incremental long run adjusted EBITDA.
“Penn Nationwide delivered a powerful second quarter that exceeded our pre-announced outcomes from June 24, 2021,” Jay Snowden, Penn Nationwide’s president and CEO, stated in a ready assertion. “For the second quarter ended June 30, 2021, Penn Nationwide generated revenues of $1.55 billion, on the excessive finish of our pre-announced vary of $1.45 billion to $1.56 billion whereas adjusted EBITDAR of $586.6 million exceeded the excessive finish of our $540 million to $580 million vary.
“In comparison with second quarter 2019 professional forma outcomes, revenues elevated 13%, adjusted EBITDAR grew 38% and adjusted EBITDAR margins elevated 694 foundation factors.”
Snowden added that the robust outcomes had been pushed by distinctive efficiency throughout the corporate’s portfolio of core gaming enterprise properties in addition to from Barstool Sports activities.
“Additional, we noticed robust income progress throughout our Penn Interactive phase, which operated close to breakeven for the quarter regardless of being reside in solely 4 states,” he famous.
In its core gaming enterprise, Penn Nationwide reported sequentially improved visitation and size of play throughout all age segments of its participant database. Spend-per-visit has remained excessive since reopening final yr, and general visitation numbers are encouraging as restrictions proceed to be lifted.
As vaccines proceed to roll out throughout the nation, the corporate stated its conventional core gaming buyer has reengaged with its properties, whereas the youthful demographic’s engagement continued all through the second quarter and into the third quarter, regardless of the elevated availability of different leisure choices. Unrated play continues to carry out properly, the corporate stated, and it has been capable of convert these prospects into the mychoice loyalty program.
As well as, the adjustments Penn Nationwide stated it has made to its choices and expense construction have led to flow-through and margin enchancment. The power occurred throughout all geographic areas, with the South main the way in which.
Penn Nationwide famous it is making nice strides within the deliberate rollout of the Barstool Sportsbook. Following the Indiana launch in Could, the corporate anticipates greater than doubling its footprint by the beginning of the NFL’s 2021 season in early September, with upcoming launches in New Jersey, Colorado, Tennessee, Virginia, and Arizona. By the tip of the yr, the corporate plans to be working in at the very least 10 states.
Lately, Penn Nationwide introduced an growth of its NASCAR relationship with a complete sponsorship and advertising and marketing partnership with the Phoenix Worldwide Raceway. Additional, the corporate has agreed to behave because the official sports activities betting accomplice for the boxing occasion between Tyron Woodley and Jake Paul on Aug. 29, which is able to embody Barstool Sportsbook branded segments that includes key personalities.
Penn Nationwide plans to open/rebrand 5 extra Barstool Sports activities retail sportsbooks by the tip of the yr. As well as, the corporate stated it’s making progress on the build-out of stand-alone Barstool-branded sports activities bars, with the preliminary areas in Philadelphia and Chicago scheduled to open later this yr.
As well as, the corporate is constant to bolster its iCasino choices, together with the addition of extra third-party content material, the introduction of a Barstool-branded reside vendor studio in New Jersey, and the launch of its first in-house developed, Barstool-branded on-line desk and slot video games by year-end.
Progress on the horizon
“We launched our cashless, cardless, and contactless (“3Cs”) expertise at Hollywood On line casino at Penn Nationwide Race Course in late June adopted by one other profitable implementation on the Meadows On line casino in mid-July,” Snowden continued. “This initiative can even carry our property expertise in step with different industries, which ought to resonate with our company of all ages.”
The corporate stated it expects to introduce the 3Cs expertise throughout the Penn enterprise over the following 12 to 18 months, pending regulatory approvals.
“We’re very excited to open our Hollywood On line casino York facility on August 12, which will probably be our third on line casino within the Commonwealth of Pennsylvania, pending remaining regulatory approval,” Snowden stated.
The on line casino in Springettsbury Township, York County, will characteristic 500 slot machines and 24 desk video games and embody a Barstool Sportsbook.
“Our second Class 4 Pennsylvania on line casino undertaking, Hollywood On line casino Morgantown [in Caernarvon Township, Berks County], is on observe to open earlier than the tip of the yr,” he stated.
Snowden stated Penn Nationwide closed on its acquisition of the Hollywood On line casino Perryville on July 1.
“We’re very excited to be working once more in Maryland, which provides a twentieth state to our main nationwide footprint,” he stated. “We anticipate so as to add a branded Barstool Sportsbook to the property and introduce our Barstool Sportsbook cell app to sports activities bettors throughout the state, which is able to proceed to increase our omnichannel presence.”
Snowden additionally famous that Barstool Sports activities continues to point out “great progress” each financially and by way of viewers metrics, because it evolves right into a diversified media, leisure and way of life model.
“Only recently, Barstool was introduced because the title sponsor and unique broadcast accomplice for the Barstool Sports activities Arizona Bowl, a watershed second for the business, as Barstool is redefining the way in which sports activities programming is produced and delivered in at present’s media panorama,” Snowden stated.