2nd M Resort tower continues to boost revenue for Penn

Henderson’s M Resort was a key contributor toward Penn Entertainment Inc.’s record third-quarter revenue, the Wyomissing, Pennsylvania-based regional gaming giant reported Thursday.

Penn, which also operates two properties on the Nevada-Idaho border within its West Division, relied on the near doubling of capacity resulting from the completion of a second hotel tower at M, which benefits from a strong alliance with the Las Vegas Raiders.

The 375-room tower opened in December and ever since then, Penn has capitalized on converting the added capacity into meaningful revenue.

In the quarter that ended Sept. 30, Penn reported record revenue of $1.84 billion compared with revenue of $1.72 billion for the same period a year ago.

“Our retail segment delivered better than expected revenue and adjusted (cash flow) results, driven by same-store growth and contributions from our completed development projects,” Penn CEO Jay Snowden said in a release.

“Property-level performance was supported by increases in rated revenue and spend per visit across all age segments, meaningful contributions from mid- and high-worth customers, and continued growth in unrated revenue,” he said. “For the third consecutive quarter, segment adjusted (cash flow) margins improved year over year. We believe the returns we are generating from investments in our portfolio highlight the opportunity across our remaining development pipeline and position us well for future growth.”

Penn reported net income of $33 million, 24 cents a share, on revenue of $1.84 billion, which included $1.37 billion in casino gaming revenue for the quarter that ended Sept. 30. That compares with a net loss of $859.8 million, largely due to capital expenses, $6.03 a share, on revenue of $1.72 billion, which included $1.325 billion in gaming revenue.

Penn is now focused on strengthening its gaming portfolio and broadening its retail reach into Canada through iGaming first introduced in Alberta.

Contact Richard N. Velotta at [email protected] or 702-477-3893. Follow @RickVelotta on X.