The results for the first quarter of 2021 indicate a strong recovery
Penn National Gaming revealed yesterday that it generated in the first quarter of 2021 $ 1. 27 billion online sports betting revenue and iGaming company.
2019 Revenue levels with higher trading margin
Increase 14% compared to 1 $. 16 billion posted in the first quarter of 2020 was more than enough for the gambling operator to reverse the quarterly net income the result from $ 608.6 million losses for Q1 2020 to $ 90.9 million profit for the reported period of three months.
Adjusted profit before interest, tax, depreciation (EBITDA) came out on $ 336.6 million , sending 117% increment from $ 154.8 million for the first quarter in 2020. Adjusted EBITDAR, EBITDA including rental costs, including leasing, amounted to $ 447 million , rise from $ 252.3 million for the relevant quarter in the previous year.
Although revenues increased year on year compared to the first quarter of 2019, in the last relevant period prior to the impact of the coronavirus, Penn National generated 6% less, while its adjusted EBITDAR was 7% higher, and net income more than twice.
“Penn National started the year with record results in the first quarter of 2021 with our land based operations and the launch of our online Barstool Sportsbook in Michigan and Illinois. "
Jay Snowden, President and CEO, Penn National Gaming
Penn attributes good results to its Barstool Sportsbook, iCasino platforms and land-based gaming venues, even though those in Pennsylvania and Illinois are closed for a while in January, in addition to New Mexico's Zia Park, which remained closed until early March.
“We continue to focus on earning the top three gaming revenues for the Barstool Sportsbook and best-in-class driving profitability. Since our product was launched just over seven months ago, we have registered over 400,000 customers and generated over $ 660 million and $ 61 million in service and gaming revenue, respectively. "
Jay Snowden, president and CEO of Penn National Gaming
Correction for days when casinos were closed and after disabling Penn Interactive's contribution shows a decrease in revenue by 9% while the adjusted EBITDAR increases by 12% indicating a significant improvement by more than 700 points on the trade margin in Q1 2021.
Lump sum expenses, record cash balance
When it comes to operating expenses, Penn National made a total of accounts $ 1. 058 billion , almost 37% with $ 1 billion 676 billion for the first quarter in 2020, but it's worth mentioning that in the first quarter of last year, Penn had impairment write-offs of $ 616.1 million , the difference that explains the fall in costs.
Even so, cost-effectiveness improvements were achieved in food, beverage, hotel and other operating expenses and depreciation, but these were offset by an increase in gaming and general administrative expenses.
At the end of the quarter, Penn National Gaming's cash balance was USD 2.1 billion while net debt was around 353 million dollars, with lease adjusted net leverage of 4.5x based on EBITDAR for Q1 2019.
“With a very strong start to 2021, our goal is to continue to transform the gaming industry and position Penn National for ongoing growth through unconventional and innovative approaches. "
Jay Snowden, president and CEO of Penn National Gaming