Penn National reports revenue increase in 2Q

Staff report

AUSTINTOWN

Penn National Gaming, Hollywood Gaming at Mahoning Valley Race Course’s parent company, reported a second-quarter revenue year-over-year increase of 9.8 percent Thursday.

Net revenue was $769.4 million in the second quarter of 2016. That’s compared with the $701 million reported in the second quarter of 2015.

Income from operations increased 21.1 percent to $149.3 million.

Adjusted earnings increased 14.5 percent to $223.8 million.

Earnings were slightly below what Penn National expected to report.

“As reported by most jurisdictions, regional gaming-industry trends began softening midway through the second quarter and remained so through June,” said Timothy J. Wilmott, president and chief executive officer of Penn National, in a statement. “While the current operating environment reflects some challenges, our second-quarter financial growth reflects meaningful contributions from our expansion and diversification initiatives over the last year.”

In the Northeast segment, where the Austintown racino is located, Penn National’s revenues were $401.5 million compared with $372.9 million reported in the first quarter of 2015.

Adjusted earnings were $127 million compared with $112.9 million made in the first quarter of 2015.

Wyomissing, Pa.-based Penn National Gaming owns and operates 27 gaming and racing operations in 17 states.

It opened the Austintown racino, a slot-machine gaming facility with a one-mile thoroughbred racetrack, in September 2014.

In August, Penn will open Hollywood Casino Jamul-San Diego, a $390-million facility with 1,700 slot machines, 43 live table games and other amenities.

In the third quarter of 2016, Penn National expects revenues to come in at $767.3 million, up from $739.3 reported in the third quarter of 2015.

For the full year, Penn hopes to bring in net revenues of $3.03 billion compared with 2015 revenues of $2.83 billion.