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Penn National Gaming revenue to grow to $1.5bn as operator raises funds

| By Daniel O'Boyle
Penn National Gaming has announced it expects Q2 revenue to fall between $1.45bn (£1.04bn/€1.21bn) and $1.55bn, up roughly 18% from Q1, as it announced plans to raise $400m.

The operator also noted that revenue would be up around 10% from Q2 of 2019, before the effects of the novel coronavirus (Covid-19) pandemic were felt. With venues closed for almost all of Q2 2020, the figure was up more than 390% year-on-year.

In addition, Penn National said its adjusted earnings before interest, tax, depreciation, amortisation and restructuring (EBITDAR) are expected to fall between $540m and $580m. Based on the midpoint of this range, this would suggest a 24.9% quarter-on-quarter growth.

Its adjusted earnings before interest, tax depreciation and amortisation (EBITDA), meanwhile, should fall between $420m and $460m.

“We believe this year-over-year and sequential improvement not only highlights continued strong demand trends, but also underscores our ability to drive sustainable margin improvement,” the operator said.

The forecasts were made as the business announced plans to raise $400m by issuing senior notes.

The operator said it intended to use the funds from the issuance for general corporate purposes.

The notes will carry a 4.125% interest rate, will be due in 2029 and will be issued via a private placement. The issuance of the notes is expected to close on 1 July.

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