Dec 31, 2022

Penn National Q4 2022 Earnings Report

PENN Entertainment reported mixed results due to weather impact but achieved profitability in the interactive segment.

Key Takeaways

PENN Entertainment reported Q4 2022 revenues of $1.6 billion, a 0.8% increase year-over-year. Net income was $20.8 million, with an adjusted EBITDA of $438.3 million increasing 18.8% year-over-year. The Interactive segment achieved profitability during the quarter.

Revenues increased by 0.8% year-over-year, reaching $1.6 billion.

Net income was $20.8 million, a decrease compared to the previous year's $44.8 million.

Adjusted EBITDA increased 18.8% year-over-year, totaling $438.3 million.

The Interactive segment achieved profitability for the quarter.

Total Revenue
$1.59B
Previous year: $1.57B
+0.8%
EPS
$0.13
Previous year: $0.26
-50.0%
Gross Profit
$670M
Previous year: $657M
+1.9%
Cash and Equivalents
$1.62B
Previous year: $1.86B
-12.9%
Free Cash Flow
$44.4M
Previous year: $10.8M
+311.1%
Total Assets
$17.5B
Previous year: $2.74B
+539.5%

Penn National

Penn National

Penn National Revenue by Segment

Forward Guidance

PENN Entertainment initiates 2023 guidance with a full-year revenue range of $6.15 billion to $6.58 billion and an Adjusted EBITDAR range of $1.875 billion to $2.0 billion.

Positive Outlook

  • Momentum in Retail and Interactive segments
  • Transition of Barstool Sportsbook to proprietary technology platform
  • Potential revenue post-migration of Barstool Sportsbook
  • Launch of Barstool Sportsbook in Massachusetts
  • Continued growth and monetization of media business

Challenges Ahead

  • Potential for further economic headwinds
  • Increased supply in a few markets
  • Unfavorable sports betting outcome in the World Series
  • Well-known headwinds in the digital media space
  • Expenses related to online sports betting launches in Maryland and Ohio