Penn National Gaming’s Q4 2020 revenue was down 23% year-on-year to $1.02bn, financial results that demonstrate visible resilience during the COVID-19 pandemic.
For the full year 2020, Penn National generated $3.58bn in revenue, a sharp 32%, with land-based gaming heavily impacted by the pandemic.
Revenue was bound to fall during such a turbulent 12-month period but online success has helped change the make-up of Penn National’s balance sheet.
Although the operator’s Q4 and FY earnings were below expectations, Penn National’s stock was up 3% after publishing its report, sitting at around the $112.20 mark.
With Q4 revenue still topping $1bn, Q4 net income was also up to $12.7m, from a loss of $92.9m for the corresponding period.
Adjusted EBITDA for Q4, however, was down 16% to $255.9m. Full year EBITDAR fell 32% to $1.09bn.
Yet the operator was able to draw on several positives boding well for its long-term future, focusing on its transition to online gaming, as well as its mychoice customer loyalty program.
Paricularly notable, though, was Penn National’s $163m acquisition of a 16% stake in Barstool Sports, with its Barstool branded sportsbooks now exceeding expectations.
Penn National CEO Jay Snowden said: «Despite our challenges, the company has continued to execute on its long-term strategy by re-evaluating and re-imagining our operational norms, and product offerings, while accelerating our digital transformation.
«Our investment in Barstool Sports provides us with a fully integrated media platform to support our evolution from the nation’s largest regional gaming operator to the best-in-class omnichannel provider of retail and online gaming, and sports betting entertainment.»