Penn National Gaming has posted its financial report for the first quarter of this year, revealing vital information about its operations. According to figures published by the renowned land-based and online operator, the first three months of 2021 were successful.
The operator generated revenue of $1.27 billion in the three-month period ending on March 31, 2021. That represents a 14.2% rise from the same period of last year. We should point out the company suffered a lot from the closure of its brick-and-mortar casino in March 2020.
Significant Improvements from 2020
Gaming operations accounted for $1.08 billion of the total figure. Again, that’s a 19.8% improvement from 2020. Hotel, food, beverage, and other sources of revenue earned $192.9 million, a 9.5% year-on-year drop.
The Northeast segment led the way with $570.9 million, improving its last year’s performance by 9.6%. The South segment followed with $295.9 million, a substantial 32.5% rise. The Midwest went up by 2.9% to $234.7 million, while the West was the only segment to record a decline in revenue. Its $96.6 million represent a drop of 23.7% from the first quarter of 2020.
A total of $87.9 million in revenue came from other sources, such as Penn Gaming’s racing operations, its poker tournament series, and the operator’s online division, Penn Interactive. The sum represents a massive 333% increase from 2021.
Sports Betting Made an Important Contribution
In September, Penn National launched its Barstool Sportsbook in Pennsylvania together with Barstool Sports. Since then, over 400,000 customers joined the sportsbook, helping generate more than $660 million in handle.
The operator has ambitious plans for its online sportsbook. According to available information, by the start of the NFL, Barstool Sportsbook will be available in eight other states, with two more to follow before the end of 2021.
Operating expenses amounted to $1.06 billion while total costs in the year’s first quarter dropped by 36.9% compared to last year’s $1.68 billion. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) improved by 117.4% to $336.6 million.
Looking Forward to the Rest of the Year
The depreciation and amortization cost was $81.3 million, earning the total operating income reached $216.5 million. That’s way better than the operating loss of $5606 million from Q1 2020.
After paying $20.6 million in taxes, Penn National was left with a profit of $91 million. The operator ended the first quarter of 2020 with a loss of $606.6 million.
Commenting on the latest numbers, President and CEO at Penn National Gaming, Jay Snowden, said its goal was to use fresh approaches to position itself for ongoing growth.
He pointed out that sports betting and the broader use of technology during the opening quarter of 2021 had been the main driving factors behind the improved performance.
Snowden added he was confident the operator was looking forward to essential changes in the way it operated.