PENN Entertainment has posted a report on its financial performance in the first quarter of the year, highlighting a modest revenue increase and a substantial net income rise.
As reported by the company, its revenues for the period increased by 7% year-on-year to $1.67 billion in Q1, 2023. In addition to that, the company reported a net income of $514.4 million, alongside a net income margin of 30.7%. For comparison, in Q1, 2022, the company reported a net income of $51.6 million with a 3.3% margin.
Adjusted EBITDAR during the period was $478.2 million, representing a 3.3% YOY decline. Meanwhile, adjusted EBITDAR margins declined by 300 bps year-on-year to 28.6%.
Adjusted EBITDA, on the other hand, was $332.2 million, representing a 23.6% YOY decline.
VIP Activity Delivered Stable Results
In Q1, PENN Entertainment was able to launch online sports betting in both Massachusetts and Ohio, two of the USA’s freshest wagering markets.
In addition to that, the company said that it has successfully repurchased $50 million of common stock at an average price of $30.36, as outlined in its February 2022 Share Repurchase Authorization.
Most of the company’s revenues came from the spectacular performance of its retail vertical. VIP players and older demographics were instrumental in driving PENN revenues, the company pointed out.
The quarter also saw PENN complete its acquisition of Barstool Sports, which it now plans to grow.
In addition to running its business, PENN remains committed to various social responsibility initiatives, such as supporting its customers, black people, women and other mistreated demographics.
CEO Snowden Praised the Results
Jay Snowden, the company’s president and CEO, commented on the results, saying that he is pleased to report another robust quarterly performance despite the macroeconomic headwinds. He noted that the company has raised its 2023 revenue guidance and now expects between $6.37 billion and $6.81 billion. The EBITDAR guidance range remains unchanged at $1.875 billion – $2 billion.
Snowden added that the company’s retail business performed well but the EBITDAR margins were negatively impacted.
Growth in our older demographics and VIP play led to largely consistent performance across the majority of our retail properties. However, the regional shift in our gaming revenues year-over-year to higher-taxed jurisdictions, and to a lesser extent, the settlement of certain property litigation matters, negatively impacted retail EBITDAR margins by approximately 100 basis points.
Jay Snowden, president & CEO, PENN Entertainment
PENN added that its total liquidity at the end of the quarter was $2.3 billion, including $1.3 billion in cash and cash equivalents. Traditional net debt as of March 31, 2023, was $1.4 billion.
No Comments
You are my inspiration , I have few web logs and occasionally run out from to post .
Your comment is awaiting moderation.