This week, Penn National Gaming announced a rebrand of the company, along with its second-quarter earnings results. The company will now be known as PENN Entertainment, Inc., with Chief Executive Officer and President Jay Snowden remarking that over the years, the company has transformed the business through a different strategy focused on organic cross-sell opportunities.
Details on the Name Change
According to Snowden, the new name maintains the company’s ties to its legacy while better reflecting the brand’s evolution as the leading provider of integrated entertainment, sports content, and casino gaming experiences.
PENN offers far more than it did before, as the brand has branched out from land-based gaming to various online services. PENN is in charge of the mychoice brand, announcing that as of the second quarter, mychoice has over 1.2 million registrations within its database. The reward program offers retail and online players a chance to earn rewards.
During the second quarter, PENN focused on migrating the Barstool Sportsbook to an in-house platform and tech stack. Revenues reached over $154 million with an adjusted EBITDA loss of $20.8 million.
The interactive segment of the company expanded its reach after launching theScore BET in Ontario via the mobile app on April 4. In July, PENN’s proprietary in-house risk and trading platform launched in Ontario, which helps theScore Bet’s online betting services. In the fall, PENN plans on offering a new Parlay+ feature for all major sports leagues on theScore Bet.
Overall Second Quarter Results
The recent second-quarter report by PENN shows three and six months ending on June 30. In the second quarter, the company showed $1.6 billion in revenues. This was an increase of 5.2% year-over-year. Net income came in at $26.1 million with a net income margin of 1.6%. This was much lower than 2021 totals of $198.7 million and 12.9%.
Adjusted EBITDAR was reported at $504.5 million, which is a decrease of 14% from last year. EBITDA was down 1.4%, at $476.5 million. Mr. Snowden commented on the quarter results, stating that PENN is pleased with the outcome and looks forward to the coming months as 2022 continues into a new quarter. It will still be some time before the third quarter reports are in and the year finishes.
Despite economic headwinds, Snowden said the company was able to see a consistent performance across retail outlets in the quarter and into the month of July. The President pointed out that the company’s strong operating performance and balance sheet allowed for stock repurchase in the quarter in the amount of $167 million under the $750 million share repurpose authorization.