Penn National Q2 2021 revenue leaps 405% on post-Covid-19 bounce
Barstool Sports operator hails potential $500m of long-term EBITDA upside from theScore acquisition
Penn National Gaming (PNG) has reported a 405% year on year rise in Q2 revenue to $1.5bn.
The Barstool Sportsbook operator revealed net income of $198.7m on a net income margin of 12.7%, a significant increase on the same period in 2020 when the group reported net income of $51m.
Company adjusted EBITDA rose to $470m during Q2, up from a Q2 2020 negative figure of -$79.3m, largely as a result of land-based closures due to the Covid-19 pandemic.
Discussing the strong results for Q2, PNG CEO Jay Snowden cited the “exceptional performance” of PNG’s core gaming business.
“Contributions from Barstool Sports, the media company, were also positive,” Snowden explained.
“Further, we saw strong revenue growth across our Penn Interactive segment, which operated near breakeven for the quarter despite being live in only four states,” the PNG CEO added.
The financial growth comes less than 24 hours after PNG revealed it had agreed a $2bn deal to acquire Canadian sports betting operator theScore.
Addressing the multi-billion-dollar deal, Snowden explained: “We anticipate that the acquisition of theScore will provide adjusted EBITDA accretion by year two, an incremental $200m medium term adjusted EBITDA, and $500m of incremental long term adjusted EBITDA upside.”
The PNG CEO confirmed his commitment to doubling the Barstool Sportsbook operational market footprint by the start of the new NFL season, with launches in Colorado, New Jersey, Tennessee, Virginia, and Arizona.
PNG has said it aims to be operational in 10 states by the end of 2021.
“Additionally, as we gain scale across the country, we will increase our marketing efforts to further widen the funnel into our omni-channel ecosystem while we remain focused on our measured and profit-driven approach,” Snowden added.
PNG has agreed to be the official sports betting partner for the upcoming fight between Tyron Woodley and Jake Paul.
“We anticipate Penn Interactive will generate meaningful EBITDA contributions beginning in 2023, inclusive of significant planned investments in marketing, product, and additional state launches.”
These investments include opening/rebranding five more Barstool Sports retail sportsbooks by the end of 2021, with PNG citing progress on the development of Barstool-branded sportsbars which are set to open in Philadelphia and Chicago later this year.
“We are also continuing to bolster our igaming offerings, including the addition of more third-party content, the introduction of a Barstool-branded live dealer studio in New Jersey, and the launch of our first in-house developed, Barstool-branded online table and slot games by year-end,” Snowden added.