Penn National Gaming Projects Q2 Revenue to Stand at $1.5bn

The announcement comes after the operator unveiled the launch of a $400 million private debt offering for general corporate purposes.

Penn Announces $400M of Senior Unsecured Notes

Penn National Gaming expects revenue for the period April-June 2021 to range between $1.45 billion and $1.55 billion, which corresponds to an 18% increase compared to Q1. The company also plans to launch a $400 million private debt offering for general corporate purposes.

The senior unsecured notes will feature a 4.125% interest rate and an eight-year term. The issuance of the notes will be finalized on 1 July. The notes are exempt from registration under the Securities Act of 1933 and therefore their sale within the United States is not permitted.

The operator also pointed out that revenue is expected to report a 10% rise from Q2 of 2019, thus reaching pre-pandemic levels. Adjusted EBITDAR is estimated to stand between $540 million and $580 million, which is equal to average growth of 4.9% quarter-on-quarter growth. Adjusted EBITDA is expected to stand at anything between $420 million $460 million.

The company’s press release further said that the midpoint of Penn’s expected adjusted EBITDAR accounts for a quarterly sequential improvement of 25%. Adjusted EBITDAR margin would mark an improvement of 220 basis points. Compared to the same period in 2019, estimations show an adjusted EBITDAR and adjusted EBITDAR margin uptick by 10%, 32%, and 625 basis points, respectively.

The US casino operator said that the year-over-year and sequential improvement is indicative of strong demand trends and also highlights the company’s ability to drive sustainable margin growth. At the beginning of June, Penn National Gaming was the company with the biggest growth on the S&P 500 Index due to a weekend of strong casino traffic across the U.S.

Penn Reenters Maryland with Hollywood Casino Perryville

Last week, Penn National Gaming unveiled it is bringing a physical Barstool Sportsbook to the state of Pennsylvania. Penn National’s Hollywood Casino York is expected to open by the end of August in a repurposed section of the York Galleria Mall.

Furthermore, in May the operator added a twentieth gaming jurisdiction to its market-leading network. Maryland Lottery and Gaming Control Commission gave Penn National Gaming the green light to acquire the operations of Hollywood Casino Perryville. 

Jay Snowden, president, and CEO of Penn National, expressed his excitement about entering this market after sports betting in Maryland was legalized a few weeks ago. Snowden added that the deal provides the operator with an opportunity to expand its unique omnichannel platform with a Barstool-branded retail sportsbook and mobile app.