Representatives of Penn National Gaming have discussed company’s financial performance during 2015 and company’s President and CEO, Timothy Wilmott, defined the previous year as “transformative” for Penn National Gaming.
He was quoted as saying that they had achieved many goals that would definitely be beneficial to the shareholders who expect to get their investment back.
In point of fact, the company reported strong numbers and major acquisitions throughout the previous year. The Wyomissing-based gaming giant can also take pride in having acquired Tropicana Casino as well as Prairie State Gaming. The opening of a casino in Massachusetts is also considered a major milestone.
As far as the operating results are concerned, Penn announced that the numbers were positive for a second consecutive year. During the fourth quarter of the year, the net revenue beat market analysts’ expectations by more than $11 million. It reached $734 million, which is an impressive number given previous year’s result of $651.4 million.
The reported full year revenue was $2.838 billion, which is $12 million more than what market analysts’ have predicted.
As far as adjusted EBITDA is concerned, Penn National Gaming reported quarterly revenue amounting to $206.2 million and yearly revenue totaling $795.7 million. Both figures have beaten the expectations by more than $24 million.
Mr. Wilmott went on to say that the impressive results achieved during 2015 as well as the ambitious future plans were a product of the disciplined operating approach that contributes to the continuing tendency for a growing adjusted EBITDA in 2016, too.
Penn’s CEO also revealed that the January results were as impressive as the fourth quarter of the previous year, which made company looking forward to 2016.
Penn National anticipates continued growth due to the fact that unemployment rates are getting down while wages are increasing. Mr. Wilmott remained optimistic that the ups and downs noticed on the stock market were not going to affect the company in a negative manner. He also added that he considers the tumbling energy prices beneficial as customers will be enabled to spend larger sums while on the premises of Penn National.
Speaking of the projects the company is expected to finalize by the end of 2016, these include a new California-based casino that is to host its first players in the summer. Tropicana also remains of paramount priority and it will be regularly upgraded. What is more, Penn National plans to introduce a special loyalty program during the second quarter of the year.
The Q1 net revenue guidance is estimated at $756.9 million. As for the yearly guidance for 2016, market analysts set their forecast at $3.05 billion.
