The operators of the Tropicana and M resorts in Las Vegas on Thursday reported record third-quarter revenue, outpacing estimates by analysts and the company’s own earnings guidance.
Wyomissing, Pennsylvania-based Penn National Gaming reported revenue of $806.2 million, 5.3 percent better than 2016’s third quarter and 1.2 percent ahead of the average projection of 10 Wall Street analysts.
For the quarter that ended Sept. 30, the company showed earnings of $789.3 million, thanks primarily to a one-time $766.2 million deferred tax valuation allowance reversal.
In an earnings call Thursday, company executives said Penn National, which has 29 casino properties in 17 states, had the best same-store revenue increase in 10 years, up 2.5 percent and paced by improvements in Ohio and Massachusetts. Excluding results from Charles Town, West Virginia, where a racetrack casino has been challenged by the opening of MGM Resorts International’s National Harbor property in nearby Maryland, same-store revenue is up 4.5 percent for the company.
Penn also got a 14 percent bump in revenue in Las Vegas, attributed mostly to the reopening of a pedestrian bridge over Tropicana Avenue that links the Tropicana with MGM Grand. The Trop also benefited from the opening of the its new Robert Irvine Public House restaurant.
Penn CEO Tim Wilmott said his company is on track to implement a strategy developed by a third-party consultant to improve profit margins. The strategy, which will begin next year, will add best-practices procedures to drive higher return on investment as well as revenue growth in gaming, hotel and food and beverage divisions.
Penn National shares fell 71 cents, or 2.8 percent, to close at $24.66 on Thursday.