Shares of Barstool Owner Penn National Approach Yearly Lows
Photo by Hyoung Chang/MediaNews Group/The Denver Post via Getty Images. Pictured: Barstool Sportsbook
Shares of Penn National stock closed at nearly 52-week lows on Thursday, the same day the Barstool Sports owner reported first quarter earnings, despite beating revenue forecasts by 2.4 percent.
Pre-market trading seemed to applaud the fact that first quarter revenue had grown 22.7 percent to $1.56 billion, but shares soon headed south with the rest of the market and closed down 5.6 percent to $36.56, just 66 cents off its 52-week low.
The Dow fell 3.6 percent on Thursday after concerns that the economy would be slowed over federal interest rates hiked to control inflation.
Penn National CEO Jay Snowden continued to tell his narrative that, thanks to Barstool, Penn is spending more rationally to acquire and keep customers than his competitors.
“We remain encouraged by the ongoing visitation from younger demographics and are focused on continuing to reimagine our properties and offerings to enhance the entertainment appeal to this steady growing segment of consumers,” Snowden said in a statement.
Penn, which plans to buy the remaining 64 percent of Barstool it does not own by early 2023, has opened two standalone Barstool-branded sports bars to go along with their Barstool Sportsbooks.
In the past year, Barstool has trademarked Barstool Bites (for a takeout restaurant business) and Barstool Games (for card games and party games).
Despite going against the grain of competitors by pitching that their cost to acquire customers is cheaper, the market hasn’t bought the difference.
Penn National stock is down 56.4 percent over the last year, which is actually favorable compared to DraftKings (down 72.1 percent), which reports earnings on Friday morning.