Penn National reports net loss in fourth quarter earnings
By Kalea Hall
WYOMISSING, PA.
Penn National Gaming Inc., the owner of Hollywood Gaming at Mahoning Valley Race Course, reported net revenue of $651.4 million for the fourth quarter.
During a conference call on fourth-quarter data, Timothy J. Wilmott, president and chief executive officer for Penn National Gaming, expressed how pleased the company is with the performance at Hollywood Gaming in Austintown and Hollywood Gaming at Dayton Raceway, which both opened last year.
“They are performing to our expectations, and we are very pleased to the starts we got at both of those [facilities],” Wilmott said.
The fourth-quarter data released Thursday shows the company’s earnings for three months ending Dec. 31. Data for the entire year also were released.
Penn National’s net revenue in the same quarter of 2013 was $644.7 million.
The company, which operates 26 casinos and racetracks in 16 states and in Ontario, Canada, projected its fourth-quarter revenue during the third quarter to be $621.1 million.
A net loss of $250.4 million was reported by Penn National in the fourth quarter primarily because the company had an impairment charge of $316.5 million.
Jay Snowden, executive vice president and chief operating officer, said the fourth-quarter strength was driven by a “robust month of December.” Milder weather during the month and positive economic trends led to this.
Revenue decreased for Penn for the year with $2.59 billion reported in 2014, compared with $2.91 billion in 2013. Penn’s net loss for the year went down to $233.2 million.
The company’s East/Midwest division, which includes Hollywood Gaming at Mahoning Valley Race Course, earned revenue of about $385 million in the fourth quarter, compared with $359 million in the same quarter of 2013.
“Despite the still-choppy consumer-spending environment, our property portfolio performed well in the fourth quarter,” Wilmott said in an earnings statement. “Operating results benefited from the first full quarter of contributions from Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course, both of which are performing well and consistent with our return-focused expectations.”
In 2015, Penn National expects to open the $225 million Plainridge Park racetrack in Massachusetts in June, and construction will continue on a $360 million Hollywood Casino-branded gaming facility on the Jamul Indian Village’s land near San Diego that is expected to open in mid-2016.
Penn expects to see net revenues of $670.6 million in the first quarter of 2015 and $2.74 billion in net revenues for the year.