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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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