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PENN Gains After Susquehanna Prediction

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Privately held trading and technology firm Susquehanna boosted its rating on Penn National Gaming stock to Positive from Neutral this week.

PENN has been described as a stock with a steady regional land-based casino portfolio whose most sensitive value driver is linked to the success of its emerging digital offering. It operates 44 facilities in the United States and Canada, many of them under the Hollywood Casino brand.

PENN observed a deep contraction in Q4 of 2021 along with its competitors, due to concerns of high competitive rivalry, and the Omicron variant disrupting sporting events. Analysts predict that PENN stock has a 59% chance of a rise during the next 21 trading days.

Moving forward, Susquehanna thinks PENN’s digital efforts can inflect positively on the back of new market penetrations, important integration milestones in Q3 and on the competitive landscape a view that Caesars Entertainment is likely to lower its digital investments.

Susquehanna notes a price target of $65 to rep more than 30% upside potential. Shares of Penn National Gaming gained 3.30% in premarket trading to $49.70.

In recent months, sports and pop-culture blog Barstool Sports, which PENN owns a 36% stake in has been hit with more controversy. Business Insider published a second hit piece about the leadership at Barstool, which was published just hours before the company reported quarterly earnings.

PENN CEO believes the timing of both hit pieces is suspicious.

Penn National Gaming Reports Fourth Quarter Revenues

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Penn National Gaming today reported financial results for the three months and year ended December 2021. Penn National owns, operates or has ownership interests in 39 gaming and racing facilities, and video gaming terminal operations across the United States of America.

2021 Fourth Quarter Financial Snapshot:

  • Revenues of $1.6 billion, an increase of $545.1 million year-over-year and $231.3 million versus 2019;
  • Net income of $44.8 million and net income margin of 2.8%, as compared to net income of $12.7 million and net income margin of 1.2% in the prior year and net loss of $92.9 million and net loss margin of 6.9% in 2019;
  • Adjusted EBITDAR of $480.5 million, an increase of $115.1 million year-over-year and $81.1 million versus 2019;
  • Adjusted EBITDA of $369.0 million, an increase of $113.1 million year-over-year and $65.0 million versus 2019; and
  • Adjusted EBITDAR margins of 30.6%, as compared to 35.6% in the prior year and 29.8% in 2019.

Jay Snowden, President and CEO commented, “I am pleased to report a strong finish to another transformative year for Penn National. Our fourth quarter revenues of $1.6 billion and Adjusted EBITDAR of $480.5 million exceeded both 2020 and 2019 levels as our best-in-class operating teams continue to deliver impressive results despite the ongoing pandemic.”

Penn National Gaming expects full-year revenue in the range of $6.07 billion to $6.39 billion.

While the market for online gambling is growing and can be a promising revenue stream for Penn, analysts caution there could be bumps in the road. Two of the so-called Big Four states still do not allow sports betting. New York and Michigan recently passed laws allowing sports wagering, but California and Florida have not.

The company also owns a 36% stake in sports and pop culture blog, Barstool Sports.

DatChat Announces National Marketing Campaign on Barstool Sports

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Communications and social media company DatChat has announced they will be running a multi-channel, national marketing campaign on Barstool Sports.

DatChat will serve as the Presenting Sponsor for multiple Barstool Sports franchises, including BFFs, which is a weekly podcast hosted by David Portnoy, Josh Richards, and Brianna LaPaglia.

Darin Myman, Founder and Chief Executive Officer at DatChat said, “We’ve been long-time fans of the work Barstool Sports and its franchises are doing as leaders and cultural touchstones spanning multiple generations across sports and entertainment.

This is a meaningful relationship for us, both as supporters of their work and as the creators of a platform which we believe is a natural fit and exciting opportunity for their audiences.”

The marketing campaign is expected to launch in November 2021. DatChat is available as a free download for iOS and Android.

About DatChat

DatChat Company Logo

DatChat Company Logo

DatChat Inc. is a blockchain, cybersecurity, and social media company that not only focuses on protecting privacy on personal devices, but also protects user information after it is shared with others.

The DatChat Messenger & Private Social Network presents technology that allows users to change how long their messages can be viewed before or after users send them, prevents screenshots, and hides encrypted photos in plain sight on camera rolls.

DatChat’s patented technology offers users a traditional texting experience while providing control and security for their messages.

With DatChat Messenger, a user can decide how long their messages last on a recipient’s device, while feeling secure that, at any time, they can delete individual messages or entire message threads, making it like the conversation never happened.

About Barstool Sports

Barstool Company Logo

Barstool Company Logo

Founded in 2003 by David Portnoy, Barstool Sports is a leading digital sports, entertainment and media platform that delivers original content across blogs, podcasts, video and social media, supported by nearly 100 dedicated personalities.

It benefits from its base of approximately 60 million monthly unique visitors, reaching an estimated 36% of males and 30% of females in the Millennial and Generation Z generations across the United States.

In 2020, Barstool Sports grew by approximately 57%, delivering nearly $150 million in revenue from digital and audio advertising, ecommerce, events and licensing. Barstool Sports is a strategic partner of casino operator Penn National Gaming and home to The Barstool Fund for small business relief due to the impacts of COVID-19.