Penn National Q1 2024 Earnings Report
Key Takeaways
PENN Entertainment's Q1 2024 results showed resilience in property-level performance with stable trends continuing into April, despite weather impacts in January and February. ESPN BET drove strong demand but was impacted by unfavorable hold. The company is focused on enhancing product offerings and media integrations with ESPN to improve retention and user spend. PENN Entertainment hired Aaron LaBerge as CTO to accelerate technology and product improvements. Total liquidity was $1.9 billion, and traditional net debt was $1.7 billion.
Property level performance showed resilience with stable trends continuing into April.
ESPN BET continued to drive strong top of funnel demand, leading to record online sports betting handle and iCasino gross gaming revenue.
Interactive segment results were negatively impacted primarily by unfavorable hold from major sporting events.
PENN Entertainment hired Aaron LaBerge as CTO to accelerate technology and product improvements.
Penn National
Penn National
Forward Guidance
PENN Entertainment is focused on enhancing its product offerings and media integrations with ESPN to improve retention and user spend. The company is also progressing with its growth projects and is on budget and on schedule.
Positive Outlook
- Stable trends continuing into April following portfolio-wide severe weather through mid-February.
- ESPN BET continues to drive strong top of funnel demand due to the reach and affinity for the ESPN brand.
- Improved online product offering will help engage, reactivate, and retain our expanding database.
- Four growth projects remain on budget and on schedule.
- Launched ESPN BET in North Carolina with a VIP event featuring ESPN’s Stephen A. Smith.
Challenges Ahead
- Interactive segment results were negatively impacted primarily by unfavorable hold from major sporting events.
- Financial results were impacted by lower-than-expected hold and spend per user.
- Weather events in January and early February impacted all our regional property segments.
- Impacts from known new supply and relative softness in our lower worth and unrated customer segments.
- Net income (loss) decreased from $514.4 million to $(114.9) million year-over-year.