Penn National Gaming forecasts Q3 EBITDA of $450m as Barstool Sportsbook shines
New sports betting app took $11m in handle during first 48 hours as operator launches capital raising efforts
Penn National Gaming (PNG) expects its Q3 consolidated revenue to range between $1bn and $1.14bn, with an EBITDA of $410m to $450m, not including a net loss that will depend on quarter-end adjustments.
Meanwhile, according to an SEC filing released by the operator today, the Barstool Sportsbook app recorded $11m in wagers in the 48 hours following its launch last Friday.
The app saw 12,000 FTDs with an average deposit size of $243, and an average rating in the iTunes App Store of 4.9.
No I don't think PENN raising capital suggests anything about the Kambi/Kindred rumors from yesterday. First, that could be accomplished at lower cost in a stock swap. Second, it seems appropriate when B&M is hemorraging money to fund it w/ cheap currency rather than asset sales.
— Elliot Turner (@ElliotTurn) September 24, 2020
The app was downloaded 180,000 times across the US during its launch weekend, although real-money bets can only be placed by those situated in Pennsylvania.
Pennsylvania’s leading online sportsbook, FanDuel, reported online handle of $144.6m in August.
The filing also details PNG’s efforts to raise new capital via a public offering of 14 million shares.
The company said the funds would be invested in “general corporate purposes,” including long-term growth initiatives, its omni-channel strategy, and its brick-and-mortar properties.
The filing was published two hours before the US stock market opened and therefore additional shares didn’t have a value assigned to them.
Upon the market opening, PNG’s share price was around $64.
Bank of America analyst Shaun Kelley this week said his initial impressions of the app were positive “given the app’s ease of use and leverage of the Barstool brand to create a unique interactive experience. We think the app targets more of a casual bettor than competitors.”