- Penn Entertainment has published its Q3 results for 2022
- The company has announced $1.6 billion in revenue, signaling an 8% YoY growth compared to Q3 2021
- Penn also recorded a net income of $123.2 million with a 7.6% margin
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After announcing its Q2 2022 revenue went up 5.2% in Q2 2022 to $1.63 billion in Q2 2022 compared to $1.55 billion, Penn Entertainment has published its Q3 results. The report highlights $1.6 billion in revenue, signaling an 8% year-on-year increase compared to the same quarter in 2021. The company also recorded a net income of $123.2 million compared to $86.1 million in Q3 2021 and a margin of 7.6% compared to 5.7% in last year’s quarter.
Younger Customers, Leading the Way to Growth
Penn Entertainment’s chief executive officer and president Jay Snowden explained the revenue growth and the “solid (Q3) quarter” through their “ongoing database growth” mainly consisting of a younger audience and stable margin performance” which went on through October. The growth was possible in spite of the uncertainty created by the economic environment. Snowden also spoke about the successful launch of their online and retail sports betting products in Kansas, highlighting the importance of their leading omnichannel strategy.
Penn’s results and momentum in Ontario were also associated with the same growth, mostly triggered by the use of its integrated media and technology developed by its in-house experts.
Snowden also mentioned the “early success” during their pioneer soccer season in Ontario, while also explaining how the operator was currently benefiting from the Score Bet’s seamless transition to its proprietary tech stack.
Penn Entertainment Has Reiterateed 2022 Revenue & Adjusted EBITDAR Range
The company also made use of its Q3 results and ongoing performance to reiterate its 2022 revenue of $6.15 billion to $6.55 billion and adjusted EBITDAR of $1.875 billion to $2.00 billion.
At the beginning of October, the company announced fresh plans to change the location of its licensed riverboat casinos in Joilet and Aurora to fresh brick-and-mortar venues in different locations. Penn also announced its intention to build a new hotel at Hollywood Columbus in Ohio along with a second hotel tower with a location at the M Resort in Nevada’s Henderson. The company has an estimated budget of around $850 million for these projects which are expected to trigger “strong free cash flow returns.”
In an attempt to hold on to its cash position, the company plans to attract funding of $575 million from Gaming and Leisure Properties along with up to $50 million from the City of Aurora for the much-anticipated projects. Gaming and Leisure Properties has signed an agreement with Penn Entertainment to create a new master lease featuring a 1.5% escalator. The escalator would include the two brand-new facilities in Joilet and Aurora along with Hollywood Columbus and Hollywood Toledo in Ohio, the M Resort in Nevada, the Meadows in Pennsylvania, and Hollywood Perryville in Maryland.