Jun 30, 2024

Penn National Q2 2024 Earnings Report

PENN Entertainment reported mixed results with strong retail performance offset by interactive losses. Revenue decreased slightly year-over-year, while the company focused on database growth and operational improvements.

Key Takeaways

PENN Entertainment reported second-quarter revenues of $1.663 billion, a slight decrease from $1.674.8 billion in the prior year. The company experienced a net loss of $27.1 million, compared to a net income of $78.1 million in the same period last year. The Interactive segment showed improved revenue but continued to have an Adjusted EBITDA loss.

Retail properties delivered solid results, driven by best-in-class operators and diverse assets.

Interactive segment revenue improved due to top-of-funnel growth, better risk management, and refined promotional strategies.

PENN Play database grew to approximately 31 million members, including 3.8 million in the digital database, up over 80% since the launch of ESPN BET.

Development projects remain on budget and on schedule.

Total Revenue
$1.66B
Previous year: $1.68B
-0.7%
EPS
-$0.18
Previous year: $0.48
-137.5%
Adjusted EBITDAR margin
22.1%
Previous year: 28.5%
-22.5%
Gross Profit
$463M
Previous year: $696M
-33.5%
Cash and Equivalents
$878M
Previous year: $1.27B
-31.0%
Total Assets
$15.5B
Previous year: $17B
-8.8%

Penn National

Penn National

Forward Guidance

PENN Entertainment is focused on several strategic initiatives to drive future growth and improve profitability.

Positive Outlook

  • Expansion of ESPN BET product enhancements.
  • Launch of ESPN BET in New York.
  • Continued investment in gaming and non-gaming offerings.
  • Leveraging cross-sell opportunities from ESPN BET customers.
  • Focus on database growth and engagement through new technology.

Challenges Ahead

  • New supply in certain markets may impact retail business.
  • Interactive segment is currently experiencing Adjusted EBITDA losses.
  • Competitive pressures in the online sports betting and iCasino markets.
  • Dependence on regulatory approvals for new market entries.
  • Economic and market conditions could affect financial results.