Regional casino operator Penn National Gaming (PNG) says legal sports betting is giving a proper boost to revenue in its other verticals.
This week, PNG delivered its Q1 financial report card, which showed revenue of $1.28b in the three months ending March 31, a 57% improvement over the same period last year, although slightly below the company’s earlier predictions of $1.3b. Earnings (after paying $208m in rent to PNG’s landlord) were up nearly 40% to $183.1m while net income fell nearly one-quarter to $41m.
The revenue figure was significantly goosed by PNG’s addition of 12 Pinnacle Entertainment casino properties, while the net income decline was the result of a significant rise in interest payments on the financing of that acquisition. PNG’s revenue (and interest payments) will grow even faster following this month’s expected completion of its $300m deal for Detroit’s Greektown casino operations.
Once the Greektown deal is in the bag, PNG’s portfolio will consist of 42 venues (soon to be 41 following the June closure of Resorts Casino Tunica) across 19 jurisdictions. All of PNG’s regional divisions reported healthy revenue gains in Q1, led by the Northeast segment ($550.6m, +20%).