Penn National Gaming reported a 23% decrease in revenue for the fourth quarter of its 2020 fiscal year, referencing the pandemic as a barrier to success.
Penn hit $1.03 billion in revenue — down from $1.13 billion in the third quarter — and a net income of $12.7 million for its fourth quarter ending Dec. 31.
Despite missing analyst expectations, the company’s CEO remains optimistic, citing its Barstool partnership that started early last year. Penn National has a 36% stake in the media company.
“We view Barstool Sports not only as a fantastic channel to promote our offerings, but also an undervalued media asset that has evolved from primarily a sports brand to a highly relevant sports and lifestyle brand,” said Jay Snowden, president and CEO at Penn National Gaming.
The company launched the Barstool Sportsbook app in Michigan earlier this month, adding 48,000 new customers and generating a total handle of $27.5 million during the first 10 days of operation. It launched in Pennsylvania last September and is expected to be live in 10 states by the end of the year.
“Our investment in Barstool Sports provides us with a fully integrated media platform to support our evolution from the nation’s largest regional gaming operator to the best-in-class omnichannel provider of retail and online gaming and sports entertainment,” Snowden said.
Penn National shares rose 8.52% today to $118.34 — up over 270% in the last year.