Tuesday, November 12, 2024

PENN Entertainment Unveils Preliminary Q3 Financial Results


Today, PENN Entertainment revealed its preliminary financial results for the third quarter ending 30 September 2024, highlighting stronger-than-expected results for its interactive unit, Penn Interactive, which includes the ESPN Bet platform. The company noted the digital segment was performing better than projected, expressing a stable outlook for its retail operations going into 2025.

Overall Financials Remain Stable

PENN Entertainment expects its Retail Operations Adjusted EBITDAR for Q3 2024 to be between $465 million and $475 million. The company remarked that its retail performance had been adversely affected by approximately $10 million due to unfavorable hold rates and volume declines due to severe weather disruptions and hotel remodeling. 

In a positive development for its digital gaming operations, PENN has lowered its projected Penn Interactive Adjusted EBITDA loss for Q3 2024 to between $90 million and $100 million, improving from its earlier guidance of $115 million to $135 million. This improvement is mainly due to better-than-expected hold rates, driven by a higher mix of parlays and lower promotional expenses. 

This mix of factors contributed to a smaller-than-expected loss in the company’s interactive business, showing growing momentum for ESPN Bet in particular. The platform recently received regulatory approval to operate in New York, giving it access to a lucrative market. Despite significant competition, PENN remains confident that ESPN Bet will find lasting success.

ESPN Bet Maintains Its Steady Growth

Despite its improved financial outlook, PENN Interactive recently experienced some internal troubles. A recent email by PENN CEO Jay Snowden confirmed that layoffs within Penn Interactive – which includes ESPN Bet – are coming.  Snowden emphasized that these layoffs would be limited, and he expressed gratitude to the affected employees for their contributions.

Snowdon emphasized that the interactive segment remains a priority for PENN Entertainment, with plans to continue investing in talent acquisition and technology improvements to strengthen the ESPN Bet platform and its overall digital offerings. Analysts remain cautiously optimistic regarding the platform’s prospects, predicting profitability by 2026 even if it retains the current market share of approximately 7%.

PENN Entertainment will release its full Q3 financial results on Thursday, 7 November 2024. The company noted it will not post updates on its preliminary results until that date. The outlook for both retail and interactive segments indicates that while PENN’s core retail operations continue to provide a stable foundation, its interactive division, particularly ESPN Bet, shows promising growth prospects.



Source link

Latest articles

spot_imgspot_img

Related articles