Penn National Q2 Profit Beats Estimates; To Acquire Score Media And Gaming

Penn National Gaming, Inc. (PENN) said it delivered a strong second-quarter that exceeded the company's pre-announced results from June 24, 2021. The results were driven by exceptional performance across the company's portfolio of core gaming business properties. Separately, the company announced a definitive agreement to acquire Score Media and Gaming, a digital media and sports betting and technology company, for approximately $2.0 billion in cash and stock.

Second-quarter profit per share was $1.17 compared to a loss of $1.69, a year ago. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.90, for the quarter. Analysts' estimates typically exclude special items. Net income was $198.7 million compared to a net loss of $214.4 million, last year. Adjusted EBITDAR was $586.6 million compared to $24.5 million, previous year.

Revenues increased to $1.55 billion from $305.5 million, last year. Analysts expected revenue of $1.45 billion, for the quarter.

Penn National said the acquisition of theScore will create North America's leading Digital Sports Content, Gaming and Technology Company. theScore shareholders will receive $17.00 in cash and 0.2398 shares of Penn National common stock for each theScore share, which implies a total purchase consideration of $34.00 per theScore share. theScore shareholders will own approximately 7% of pro forma company.

theScore is the number one sports app in Canada and the third most popular sports app in all of North America. Penn National anticipates the acquisition will provide adjusted EBITDA accretion by year two.

Shares of Penn National were down nearly 5% in pre-market trade on Thursday.

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