Penn National Gaming enjoys $1.6bn in revenue for Q1, 2022

The leading US gaming operator, Penn National Gaming, released its unaudited financial results for the three months ended March 31, 2022. Judging by those results, the company enjoyed another strong quarter, with revenues surpassing $1.5 billion.

In total, Penn National's revenues for the first quarter of 2022 hit $1.56 million. This marked a 22.7% increase when compared to the $1.27 billion in revenue for the same period the prior year.

While revenues for Q1, 2022 increased, the net income marked a decrease to $51.6 million, when compared to the $90.9 million from the same period in 2021. A year-over-year comparison for adjusted EBITDAR shows a 10.7% increase to $494.7 million. On the other hand, EBITDA hit $434.6 million in Q1, 2022, up 29.1% when compared to the same period in 2021.

In the first quarter, all of Penn National's business segments reported an increase in revenues. The company's Northeast segment's revenue increased to $658.5 million, up 15% from the $570.9 million in Q1, 2021. Similarly, the company's South operations have seen $341.4 million in revenues, while the West segment increased to $140.9 million.

The revenues of Penn National's Midwest operations increased to $282.9 million, up from the $234.7 million from the same period in 2021. A significant increase was also observed in the operator's interactive operations. For the first quarter this year, Penn National's interactive operations hit $141.5 million in revenue, up nearly 64% when compared to the $86.3 million from the first quarter in 2021.

In a press release dated May 5, 2022, Penn National Gaming's CEO, Jay Snowden, revealed that the Q1, 2022 revenue is the result of strategic objectives achieved by the company. He said: "Penn National Gaming generated record first quarter results with revenues of $1.56 billion and Adjusted EBITDAR of $494.7 million."

Speaking about the retail sector, Snowden outlined that Penn National enjoyed an increase in visitation from the younger demographic. Seeking to further appeal to the younger demographic, Penn National's CEO vowed that the company will continue to reimagine its properties.

Snowden explained that the launch of online and retail offering at the Morgantown Casino and Hollywood Casino York in Pennsylvania helped increase the VIP segment by 28%.

The company's cashless, cardless and contactless technology also referred to as the "3C's" started to bring benefits as well. "This technology is now live at nine properties in three states and has increased the value of the guest in terms of visitation frequency and time on device," added Snowden. Additionally, the CEO said that the 3C's technology will be implemented in 14 more properties in eight states later this year, subject to regulatory approval.

Addressing the interactive segment, Snowden said that it "generated meaningful growth year-over-year." As a result, Penn National kept the profitability objectives it has set for the sector.

Last but not least, Penn National's CEO acknowledged that the first quarter delivered strong revenue. He predicted that the company will keep the positive momentum for the rest of the year.

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