For the third quarter of the year, Penn National Gaming announced increases across the board, driven primarily by ongoing growth of igaming and sports betting across the US.
When sales soared 71.5 percent to $1.35 billion (2018: $789.7 million), the Wyomissing, Pennsylvania, based organisation celebrated a plethora of alliances and releases as a key component of continued success.
Penn National CEO Timothy Wilmott explained: “In the third quarter, we continued to expand our sports betting operations with the opening of a retail sportsbook at Ameristar Casino Council Bluffs in Iowa and two retail sports books in Indiana, one at Hollywood Casino Lawrenceburg and one at Ameristar Casino East Chicago.
“Earlier this month we also opened our retail sports book at the Meadows Casino near Pittsburgh, Pennsylvania. One of our skin partners has also recently launched online sports betting operations in West Virginia and Indiana and should be live in Pennsylvania soon.
“Separately, we were very excited to launch our real money igaming platform in Pennsylvania. We are very encouraged by early market share results from these operations and are excited about the new growth opportunity.
“The combination of our greater than 5m active mychoice player database and our industry leading regional casino footprint positions us well to capitalise on the rapidly expanding sports betting and igaming markets in a way that maximises shareholder value.”
Net income in the third quarter was 43.7 million, up 21% from $36.1 million, with adjusted EBITDA rising 35.6% from $229.7 million to $311.6 million.
It has been said that the results “reflect the consistency of the consumer” over the past year, with strong performance across the western and southern segments offsetting the effects of increased competition in the northeast.
Remaining on track to achieve a two-year $120 m cost savings goal by the end of 2020 as a result of the $2.8bn Pinnacle Entertainment takeover, Penn also received an update on its two four casino ventures in Pennsylvania.
“Our development projects in Pennsylvania, the $120m Hollywood Casino York and the $111m Hollywood Casino Morgantown (both inclusive of the gaming license fees), remain on track,” said Wilmott.
“Construction of the Morgantown project is well underway, and we expect to commence construction activities at the York site soon. We anticipate approval from the Pennsylvania Gaming Control Board for our York project in November. Both facilities are scheduled to open in the fourth quarter of 2020.”