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Penn National reports 1Q earnings
By Kalea Hall
AUSTINTOWN
Penn National Gaming Inc.’s first-quarter earnings exceeded not only last year’s earnings, but the company’s forecast, too.
During the first quarter, the company, which operates Hollywood Gaming at Mahoning Valley Race Course, reported adjusted earnings of $221.7 million. In the first quarter of 2016, the company reported adjusted earnings of $212.9 million.
For the first quarter of 2017, Penn National had expected to report adjusted earnings of $209.3 million.
“We are very pleased with our performance across the portfolio,” said Jay Snowden, president and chief operating officer for Penn National.
Revenue for the first quarter was $776.2 million, up from $756.2 million reported during the first quarter of 2016.
“Our strong first-quarter results reflect operating strength across the portfolio, including the growth of recently opened or acquired assets, combined with our focus on driving operating efficiencies and margin expansion at our established properties,” said Timothy J. Wilmott, chief executive officer of Penn National, in a statement.
Earnings per segment during the first quarter were: $126 million in the Northeast; $36 million in the South/West; $78 million in the Midwest; and a loss of $19 million in the other segment.
The other category consists of the company’s standalone racing operations, and it also includes corporate overhead costs, which were $24 million during the first quarter, which compares with $20.6 million last year.
At the end of March, Penn National operated 27 facilities in 17 states.
The transaction to acquire the holdings companies for the gaming operations of Bally’s Casino Tunica and Resorts Casino Tunica in Mississippi, is expected to close Monday.
Locally, the Austintown racino opened in September 2014 with 850 video-lottery terminals, or slot machines, and a one-mile thoroughbred racetrack.
Since its opening, Penn National has added nearly 200 gaming devices, as well as a smoking-patio expansion in 2016, which added 73 slot machines to the Austintown racino.
An additional 50 new slot machines are being installed with a completion date set for June.
The racino reported a 13.5 percent year-over-year increase in March video lottery-terminal revenue, according to the Ohio Lottery Commission.
Total revenue in March was $10,101,262 with an average number of 988 video lottery terminals or slot machines. In March 2016, total revenue was $8,893,141 with an average of 940 slot machines.