CASINO

Penn National Gaming stays upbeat, reports increased revenue for 2015

TAGs: Jasmine Solana, penn national gaming, revenue

Penn National Gaming had a “productive 2015,” saying the U.S. casino operator grew its revenue and cash flow in the last quarter of the year. However, the company has yet to release any net income figures for the year, saying it needs to restate its financial statements.

Penn National Gaming stays upbeat, reports increased revenue for 2015In a release that accompanied the limited financial data for 2015, Penn Gaming said revenue last year reached $2.84 billion, which is a 9.7 percent higher compared to 2014’s $2.59 billion. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 2015 was $795.7 million, an increase of 12.2 percent from the adjusted EBITDA of $709.3 million in 2014.

Penn Gaming’s consolidated cash flow for the last quarter of 2015 also grew 20 percent to $206.2 million.

CEO Tim Wilmott said 2015 was an “active” year for the casino giant, which operates more than 20 gaming facilities in the United States and Canada. Last year, Penn Gaming acquired Tropicana Las Vegas, one of the last Rat Pack-era casino resorts on the Strip, for $350 million. In addition, the operator also opened a race track casino in Massachusetts and bought an Illinois-based video lottery terminal company.

“Our progress throughout the year in enhancing operations, profitably growing market share in several key markets, maximizing operating efficiencies, and the continued success of our expansion initiatives position us for further financial growth in fiscal 2016,” Wilmott said in a statement.

Wilmott said the company has already made some progress in its plan to position the Tropicana to “benefit” from the improving economy. Penn Gaming is updating the casino’s slot machines and table game placement and introducing the company’s player rewards program. Wilmott said the program has 3 million players in the program, of which a “significant percentage” frequently visit Las Vegas.

“We believe Tropicana Las Vegas will create shareholder value as we attract new and more profitable customer segments,” the Penn Gaming executive said.

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