Penn National shares drop on lower than expected third-quarter results

Finance News

Penn National Gaming shares sunk 9.6% toward a three-month low in morning trading, after the online gaming and sports betting company and Barstool Sports partner reported a big third-quarter profit miss as momentum in its core business slowed in the second half of the quarter. 

Profit dropped to $86.1 million, or 52 cents a share, in the third quarter from $141.9 million, or 93 cents a share, a year earlier. Revenue jumped 33.8% to $1.51 billion from $1.13 billion a year ago.

Jay Snowden, President and Chief Executive Officer, commented: “We achieved an important milestone with the closing of our acquisition of Score Media and Gaming on October 19. Combined with the power of Barstool Sports, we are now well positioned to be North America’s leading digital, entertainment, sports content, gaming, and technology company. Barstool’s wide, top-of-funnel audience reach is highly complementary to the news, scores and stats available on theScore’s best in class media app, which will create a one-stop destination for the sports fan that does not exist today. Further, we are excited to bring theScore’s cutting-edge technology in house, which will provide us with a fully integrated media and betting solution as well as full ownership of our product roadmap.

“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. Consistent with our previously disclosed strategy, we anticipate theScore Bet will be our leading brand in Canada while we will continue to lead with Barstool Sportsbook in the U.S. Most importantly, we expect that both brands will benefit from the marketing support of Barstool Sports and integration with theScore’s media app. We are excited to welcome theScore’s rapidly growing team into the Penn National Gaming family and are looking forward to leveraging Canada’s world class talent pool of engineering and technology expertise.