Penn National Gaming has published its financial results for the second quarter of 2022, reporting year-over-year revenue and net income growth, but a decline in adjusted EBITDAR.
The company has also announced a name change, rebranding itself to PENN Entertainment, reflecting its “evolution” into a “provider of integrated entertainment, sports content and casino gaming experiences”.
Revenues and net income see YoY rise
For Q2, PENN declared revenues of $1.6bn, a 5.2% YoY improvement on Q2 2021’s revenue of $1.5bn. The company’s net income came in at $26.1m, with a net income margin of 1.6% (2021: $198.7m with a net income margin of 12.9%).
The company registered a 14% YoY decrease in adjusted EBITDAR to $504.5m (2021: $586.6m), a 1.4% YoY increase in adjusted EBITDA to $476.5m (2021: $470.1m), and adjusted EBITDAR margins of 31%.
PENN also emphasized the growth of its mychoice database during the quarter, which it says highlights the value of its omni-channel strategy. The company also spotlighted the successful migration of theScore Bet to its proprietary tech stack in Ontario.
“We are pleased with our second quarter results. PENN generated revenues of $1.6bn and Adjusted EBITDAR of $504.5m,” commented Jay Snowden, CEO and President of PENN Entertainment.
“Despite economic headwinds, we delivered consistent performance across our retail portfolio in the quarter and into July.”
mychoice database grows and theScore Bet launches in Ontario
Per vertical, PENN’s property Q2 revenue reached $1.5bn, with an adjusted EBITDAR of $548.7m, and adjusted EBITDAR margins of 37.2%
The company noted that its mychoice database has increased by over 1.2 million registrations over the last four quarters thanks to “retail properties and new interactive offerings, providing significant opportunities for future growth”.
Meanwhile, interactive revenues for the quarter came in at $154.9m with an adjusted EBITDA loss of $20.8m.
During the quarter, theScore Bet launched in Ontario, before beginning operations on its own vertically integrated proprietary tech stack in July, which includes the risk and trading platform, player account management system, and promotion engine.
PENN adds that it plans to introduce a new Parlay+ feature on theScore Bet for all major league sports in the fall, as well as migrate the Barstool Sportsbook in the US onto the new tech stack during Q3 2023.
For media, the company notes that theScore media revenue has grown by 11% YoY and monthly sessions are increasing by 20%. Barstool Sports has also expanded its social reach by “delivering highly engaging and relevant content”.
In ESG, PENN highlighted its Diversity, Equity, and Inclusion (DE&I) efforts, adding it was placed fourth out of 40 gaming companies on the All-In Diversity Project’s All-Index leaderboard. During the quarter, the company also launched a company-wide diversity training initiative, and it continued to push its Emerging Leaders Program.
Penn National becomes PENN Entertainment
Within its Q2 results, Penn also revealed a rebrand of the company to PENN Entertainment to better reflect the “evolution” it has undergone over the past several years through an array of different investments.
Snowden stated: “Today is an exciting day for us as we become PENN Entertainment, Inc.
“Over the past few years, PENN has transformed our business through a highly differentiated strategy focused on organic cross-sell opportunities, which is reinforced by our investments in market-leading retail casinos, sports media assets, owned technology, including a state-of-the-art, fully integrated digital sports and online casino betting platform, and an in-house icasino content studio.
“Our new name maintains ties to our legacy while better reflecting our evolution into North America’s leading provider of integrated entertainment, sports content, and casino gaming experiences.”
Looking ahead, Snowden reiterated PENN’s 2022 revenue and adjusted EBITDAR guidance.
Based on its Q2 results and its outlook for the remainder of the year, the company expects revenue in the range of $6.15bn to $6.55bn, and adjusted EBITDAR in the range of $1.875bn to $2bn.