Penn National pivots to omni-channel approach after $608m Q1 loss
Penn Interactive preps for Barstool Sportsbook launch to help consolidate digital and retail products
Penn National Gaming (PNG) will invest in increased omni-channel opportunities for its land-based casinos to mitigate some of the $608.6m in losses it has incurred during the coronavirus pandemic.
The closure of Penn National’s 41 properties in March resulted in Q1 revenues decreasing by $166.5m year-on-year to $1.12bn.
Group CEO Jay Snowden said the operator was taking steps to connect its land-based and online products to consolidate play across all its platforms, including sports betting.
Snowden believes the August launch of Penn’s Barstool Sportsbook will help bridge the gap between retail and online.
“This omni-channel approach will be bolstered by the broad appeal of Barstool Sports, and we look forward to attracting Barstool fans to our casinos through special events and talent appearances once the virus has subsided,” Snowden said.
Despite the halt in land-based operations, the business has continued to invest in its Penn Interactive team and Snowden expects the Barstool product to generate a loyal audience.
The product will be supported by a marketing engine that will help drive meaningful market share, Snowden added.
PNG recently hired former GAN VP marketing Siska Concannon to lead marketing efforts for the digital business.
Penn Interactive, reported alongside the group’s four JV and stand-alone racing operations, recorded $20.3m in revenue and an $18.9m EBITDA loss in Q1.
Snowden said: “Penn Interactive had a notably strong first quarter, beating budgeted revenue and EBITDA despite the loss of retail sportsbook revenue for most of March.
“That momentum has carried into the second quarter, with Penn Interactive experiencing significant growth in users and revenue for both its social and real money gaming products,” he added.
According to monthly revenue figures published by the Pennsylvania Gaming Control Board, Penn Interactive gained $7.4m in Q1 revenue in the state.
The firm implemented cash saving measures in March, including 6,000 retail staffers on furlough and is on target to save $84m a month per April in operational costs.
PNG expects these measures will allow it to weather the temporary suspension of operations without sacrificing its long-term objectives.