Penn National Gaming has announced its preliminary Q2 operating revenue, as well as a proposed private issuance of $400 million senior notes, subject to market and other conditions, with the proceeds going to general company purposes.
The gambling company, which operates 41 locations in 19 states, expects revenue of $1.4 billion to $1.55 billion in the three months ending June 30, 2021, with consolidated adjusted revenue of $540 million to $580 million.
The company, which operates casinos with 50,000 gaming machines, 1,300 table games, and 8,800 hotel rooms, believes the year-over-year and sequential growth demonstrates a continuing trend of robust demand while also demonstrating “our ability to drive sustainable margin improvement.”
Quarterly sequential improvement
In addition, PNG stated: “The midpoint of our expected revenue and adjusted EBITDAR ranges reflect a quarterly sequential improvement of 18 per cent and 25 per cent, respectively, and adjusted EBITDAR margin improvement of 220 basis points.
“When compared to the three months ended June 30, 2019, we expect revenue, adjusted EBITDAR and adjusted EBITDAR margin to increase by 10 per cent, 32 per cent, and 625 basis points, respectively.”
Last month, the company completed a trifecta of acquisitions, culminating in the formation of Penn Game Studios, an in-house content production team tasked with developing exclusive igaming content for its consumers.
As a result, HitPoint Studios and its spin-off real money gaming company LuckyPoint have been purchased by PNG and will be integrated into the corporation’s wholly-owned interactive branch, Penn Interactive.
HitPoint is a Massachusetts-based independent game design and development studio that launched LuckyPoint in 2019 to focus on real-money game development as well as the establishment and maintenance of a remote gaming server.
The Maryland Lottery and Gaming Control Commission recently gave PNG the green light for Hollywood Casino Perryville acquisition.