PNG Revenue Up but Profits Fall
Penn National Gaming (PNG) (NASDAQ: PENN) has posted revenues of $1.51 billion for the third quarter of the year. While its profits fell due to non-operating expenses, total revenue was up 33.8% year-on-year.
A large amount of the revenue, $672.4 million, was brought in by PNG’s northeastern properties, while its southern properties brought in $318.2 million, the mid-western properties $285.7 million, and the western properties $145.7 million. The company’s other business segments, such as digital, brought in $96.5 million.
The vast majority of total revenue, $1.25 billion, came from gaming, while the remaining $225.6 million came from food, beverage, hotel, and others.
However, PNG’s operating expenses grew significantly. Gaming costs of sales climbed to $652 million, general and administrative costs were $376.5 million, and food, beverage, and hotel costs were $160.1 million. There were depreciation and amortization costs of $83.7 million. Total operating expenses were $1.27 billion, up 36.3% year-on-year, which left operating income at $239.1 million.
In regard to non-operating expenses, interest costs came to $144.9 million. The total profit before taxes was $122.5 million, and after taxes of $36.4 million, the total net profit for the quarter was $86.1 million.
The company’s executive vice president Felicia Hendrix said that the environment is still uncertain due to the pandemic but that “the future looks bright.” Jay Snowden, the CEO, was also upbeat about the future.
We achieved many significant milestones in the third quarter. We successfully launched the Barstool Sportsbook mobile app in five states, which more than doubled our footprint. In addition, we opened Hollywood Casino York to strong initial results, began to roll out our market-leading cashless, cardless, and contactless technology across the portfolio, and continued to derive multiple tangible benefits from our highly differentiated omni-channel strategy.