Penn National Gaming, a prominent US gambling company, has unveiled its rebranding as Penn Entertainment along with the release of its second-quarter financial results. The company recorded $1.6 billion in revenue for Q2, representing a 5% increase compared to the previous year. While adjusted earnings decreased from $586.6 million in Q2 2021 to $504.5 million in Q2 2022, Penn Entertainment remains optimistic about its future prospects.
Rebranding as Penn Entertainment:
Penn National Gaming has officially rebranded itself as Penn Entertainment, reflecting its transformation into a leading provider of integrated entertainment, sports content, and casino gaming experiences in North America. The new name highlights the company’s strategy of capitalizing on organic cross-sell opportunities and its investments in retail casinos, sports media assets, state-of-the-art technology, and an in-house iCasino content studio. The rebranding showcases Penn Entertainment’s commitment to delivering exceptional entertainment and gaming experiences to its customers.
Financial Performance in Q2:
Penn Entertainment reported $1.6 billion in revenue for the second quarter, a 5% increase compared to the same period in the previous year. However, net income and net income margin experienced a significant decline, with Q2 2022 figures standing at $26.1 million and 1.6%, respectively, compared to $198.7 million in Q2 2021. It is important to note that the revenue includes $55.4 million related to gaming tax reimbursements from third-party skin partners.
Adjusted EBITDA, a key financial metric, reached $476.5 million, indicating a slight 1.4% increase. On the other hand, adjusted EBITDAR dropped by 14% to $504.5 million. Despite economic headwinds, Penn Entertainment’s retail portfolio delivered consistent performance throughout the quarter and into July.
CEO Jay Snowden’s Statement:
Jay Snowden, the CEO and President of Penn Entertainment, expressed enthusiasm about the company’s rebranding and its achievements. Snowden highlighted Penn Entertainment’s success in becoming a leading provider of integrated entertainment, sports content, and casino gaming experiences in North America. The CEO also emphasized the company’s commitment to leveraging its state-of-the-art technology and in-house iCasino content studio to enhance its offerings.
Partnership with US Integrity:
In April, Penn National Gaming entered into a comprehensive partnership with US Integrity, covering both the US and Canadian regulated markets. US Integrity provides Penn Entertainment with integrity monitoring services through its proprietary dashboard. The partnership enables Penn Entertainment to analyze data and identify irregular contest-level, officiating, and wagering patterns, ensuring the integrity of its operations. Chris Soriano, Chief Compliance Officer of Penn Entertainment, expressed excitement about the collaboration, emphasizing the expansion of their industry-leading brands, including Barstool Sportsbook and theScore Bet, across regulated markets in the US and Canada.
Penn National Gaming’s rebranding as Penn Entertainment reflects its strategic focus on delivering integrated entertainment, sports content, and casino gaming experiences in North America. Despite a decrease in adjusted earnings, the company’s second-quarter financial results demonstrate resilience and consistent performance across its retail portfolio. The partnership with US Integrity further strengthens Penn Entertainment’s commitment to maintaining integrity in its operations. As Penn Entertainment continues to evolve and expand its market presence, it remains poised for success in the highly competitive gambling industry.