Penn National Gaming Posts Strong Q2 Driven By Gaming Demand, To Purchase theScore For $2B

Penn National Gaming Inc PENN reported second-quarter FY21 sales growth of 26.7% year-on-year, to $1.55 billion, beating the analyst consensus of $1.45 billion.
The revenue increase was driven by demand across the portfolio of core gaming business properties.
Gaming revenue rose 403.6%, while food, beverage, hotel, and other revenue increased 419% Y/Y.
Revenue from Northeast, South, West, and Midwest segments surged from last year.
EPS of $1.17 beat the analyst consensus of $0.90.
Total operating expenses shot up 148% Y/Y to $1.2 billion.
The operating margin was 24.4%, and operating income for the quarter was $377.9 million.
Adjusted EBITDA was $470.1 million. Adjusted EBITDAR was $586.6 million, with Adjusted EBITDAR margin of 37.9%, expanding 2993 basis points Y/Y and 722 basis points versus 2019.
The company held $2.3 billion in cash and equivalents as of June 30, 2021.
"We saw strong revenue growth across our Penn Interactive segment, which operated near breakeven for the quarter despite being live in only four states," said CEO Jay Snowden.
Penn National is set to acquire Score Media and Gaming, Inc. SCR (theScore), a digital media and sports betting and technology company, for $2.0 billion in cash and stock.
theScore shareholders will receive $17.00 in cash and 0.2398 shares of Penn National common stock, implying a total purchase consideration of $34.00 per share.
Price action: PENN shares are trading lower by 2.28% at $65.73, while SCR is trading higher by 56% at $28.35 on the last check Thursday.

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