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Penn National CEO Talks Q2 Earnings

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Penn National CEO Talks Q2 Earnings

Penn National Gaming, Inc (NASDAQ: PENN) reported second-quarter results that look much different than the prior quarter when all 41 of its properties were closed, Penn National Gaming CEO Jay Snowden said on CNBC.

From 41 Shutdowns To 2: During Penn's second quarter, all but two of the company's 41 gaming properties were in some form operational, Snowden said. As such, a lot has changed from the first quarter when the company lost more than $5 per share and second-quarter EPS improved to a loss of $1.69 per share.

The majority of properties that are open can operate at 50% of their prior capacity, he said. Even at these depressed levels, Penn can return to prior year revenue levels in a fun and safe environment. Those who engage with Penn's casinos are doing so for longer periods of time as spend per visit is up around 45% year-over-year.

Penn is seeing a lot of new customers come to its facilities, especially younger people.

"We are really excited about really being able to market to a new set of customers during these challenging times," the CEO said.

Online Growth Profile: Penn operates online gaming sites in Pennsylvania and it saw a growth rate of more than 100% since the first quarter. Snowden said the growth could be a result of people being bored at home with fewer entertainment options.

Penn wants to be an omni-channel leader and could further capitalize as more states open up to legal gambling.

"Whatever you like to do and however you like to engage with sports and casino offerings, we are going to be able to offer that to you as long as the legalization process continues to proliferate the way it has over the last couple of years," he said.

Penn's stock traded higher by 8.8% to $47.76 per share at time of publication.

Related Links:

Analyst: 'Trends Are Encouraging' For US Regional Casinos

Analyst: Why Penn National And Boyd Could Outperform As US Casinos Reopen

 

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