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On Thursday, Penn Entertainment released its first-quarter financials for 2023. The US gambling company reported year-over-year increases in both revenue and net income.
Penn reported first-quarter net income of $514.5 million. The casino operator posted:
- Q1 revenue of $1.67 billion
- Adjusted EBITDAR of $478.2 million
Jay Snowden, Chief Executive Officer and President announced via press release: “We are pleased to report that PENN delivered another solid quarter in what remains an uncertain macroeconomic environment.”
Penn’s Q1 revenue was also driven by the acquisition of Barstool
The company’s revenue of $1.67 billion shows a growth of 7% compared to $1.56 billion from Q1 2022.
Revenue includes $28.2 million related to Penn’s acquisition of Barstool Sports in February 2023.
Snowden explained: “As previously announced, on February 17 we completed our acquisition of the remainder of Barstool Sports Inc.
Accordingly, we are raising our prior 2023 revenue guidance range to $6.37 billion ‒ $6.81 billion to reflect the Barstool acquisition, which is neutral to Adjusted EBITDAR. As such, our prior 2023 Adjusted EBITDAR guidance range of $1.875 billion ‒ $2.0 billion remains unchanged.
Barstool has more than doubled its annual revenues since our initial investment in February of 2020 by providing relevant and entertaining content to their growing, loyal audience. Looking forward, we expect to unlock even greater value from the Barstool audience as we refine our cross-sell strategies and pursue new growth channels.”
Penn stated a profit of $3.05 per share
In terms of stocks, the company said it had a profit of $3.05 per share. Earnings, adjusted for non-recurring gains, were almost 31 cents per share.
The Business Wire press release says: “During the three months ended March 31, 2023, the company repurchased 1,646,963 shares of its common stock in open market transactions for $50.0 million at an average price of $30.36 per share.
The company repurchased 647,319 shares of its common stock at an average price of $29.21 per share for an aggregate amount of $18.9 million. The remaining availability under our February 2022 authorization was $80.4 million and $750.0 million under our December 2022 authorization as of May 3, 2023.”
Recent sports betting launches influenced Penn’s performance
Penn recently launched online sports betting in three US markets:
- Ohio
- Massachusetts
- Kansas
All three launches were mentioned as strong factors in the company’s performance, with an emphasis on Ohio and Massachusetts.
As the release states: “Our mobile launches on January 1 in Ohio and March 10 in Massachusetts highlight the advantages of our organic, omnichannel customer acquisition strategy, as we leveraged our PENN Play™ database and the Barstool Sports audience to drive incremental revenue both online and at our retail properties.
Additionally, during March Madness, top Barstool personalities performed live streams from our market-leading retail sportsbooks in Ohio and Louisiana, leading to increased brand awareness and digital engagement.”
The company’s performance in Ontario was the strongest, driven by Penn brand theScore.
Penn also rebranded and updated its customer loyalty program, adding new features and changing the program’s name from Mychoice to Penn Play.
