Regional casino and sports betting company Penn National Gaming Inc PENN announced third-quarter financial results before market open Thursday. Here are the highlights from the report.
What Happened: Penn National Gaming reported revenue of $1.5 billion, coming in line with Street estimates. The total was up from the third quarter of 2020 and 2019.
In the quarter, the company launched the Barstool Sportsbook mobile app in five states (Arizona, Colorado, New Jersey, Tennessee, Virginia). This doubled the footprint of the company’s online sports betting brand.
After the end of the third quarter, the company also launched the sports betting app in Iowa, which makes it 10 states where the company's app now has a presence.
“Overall, we are benefiting from our increased scale and are driving higher handle and revenue market share across the board while remaining disciplined with our marketing and promotional spend,” Penn National CEO Jay Snowden said.
The company said the football season is helping the company see strong results. Barstool Sportsbook saw market share gains in the mature markets of Pennsylvania and Michigan.
“Nearly 50% of our customers bet with Barstool exclusives and participate in merchandise promotions, odds boosts and opportunities to bet with or against popular Barstool talent.”
The company’s app is the highest-rated sports betting app in North America for iOS, with a 4.8 user rating out of 5.0.
Related Link: 4 Reasons To Like Penn National: Cost Savings, Sports Betting, Margins And More
What’s Next: Penn National announced it closed the acquisition of Score Media and Gaming on Oct. 19. The brand will help the company increase its coverage to fans as it combines the Barstool and Score brands and audiences together.
“As the most popular sports media app in Canada, theScore is uniquely positioned to capitalize on the legalization of single event sports wagering in Ontario when the province is ready for launch.”
The company highlighted the growth of Barstool outside of sports betting. Barstool launched a name, image and likeness business for college athletes. The company has signed 135,000 athletes as Barstool Athletes.
Barstool Sports also launched its “One Bite” frozen pizza exclusively in Walmart WMT stores with “initial sales exceeding expectations.”
Barstool is also launching standalone Barstool-branded sports bars, with the first two coming in Philadelphia and Chicago.
PENN Price Action: PENN shares are down 3.05% to $70.51 in premarket trading Thursday.
PENN shares have traded between $53.12 and $142 over the last 52 weeks.
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