Penn Entertainment reports strong Q4 results with growth in interactive segment

Key points:

– Penn Entertainment reported Q4 2024 revenues of $1.669bn, up from $1.395bn in Q4 2023

– Net loss for the quarter improved to $133.8m from $358.8m in the prior year

– The company plans to repurchase at least $350m of shares in 2025, reflecting confidence in its financial position

Penn Entertainment has released its financial results for the fourth quarter and full year ending 31 December 2024 – showing notable improvements in revenue and a reduced net loss.

The company reported revenues of $1.669bn for the quarter, an increase from $1.395bn in the same period last year.

Net loss for the quarter was reported at $133.8m, a significant improvement from the $358.8m net loss reported in the fourth quarter of 2023.

CEO and President Jay Snowden highlighted the company’s overall performance, noting that properties unaffected by new competition experienced nearly 3% year-over-year revenue growth.

He also noted that the interactive segment demonstrated significant progress due to disciplined promotional strategies and growth in the online casino business.

Snowden wrapped up by expressing optimism for the future, stating: “We are excited by the opportunities that lie in front of us in 2025 and into 2026 in all aspects of our business.”

Penn’s property-level operations, covering the Northeast, South, West and Midwest regions, generated revenues of $1.4bn with an Adjusted EBITDAR of $461.2m – yielding a margin of 33.1%.

Snowden attributed this performance to initiatives aimed at enhancing customer experience and operational efficiency. These efforts include technology upgrades, hotel renovations, new food offerings, ESPN BET-branded retail sportsbooks and pop-up experiences.

Another key aspect of Penn’s strategy is its omni-channel approach, which has led to a 64% year-over-year increase in online customers engaging with retail properties. Strong performances in states such as Ohio, Massachusetts, Kansas and Missouri helped offset challenges posed by increased competition in some markets.

Additionally, four retail growth projects remain on schedule and within budget, with the new Hollywood Casino in Joliet set to open in the fourth quarter of 2025, pending regulatory approvals.

The company’s Interactive segment saw revenues of $275m, including a tax gross-up of $132.8m, with an Adjusted EBITDA loss of $109.8m.

Despite customer-friendly sports betting outcomes during the quarter, the segment demonstrated sequential monthly improvements in parlay mix since October.

Good to know: By December and January, parlays accounted for over 30% of handle, with Same Game Parlays (SGPs) contributing significantly to this growth

The online casino division also delivered solid quarterly gaming revenue, reflecting over 60% growth compared to the previous year. This success was driven in part by the launch of standalone Hollywood Casino apps in Pennsylvania and Michigan.

Looking ahead, Penn plans to strengthen its digital offerings by integrating live streaming into the ESPN Bet app, introducing new features in collaboration with ESPN and expanding its standalone iCasino app offerings.

As of 31 December 2024, Penn reported total liquidity of $1.7bn, including $706.6m in cash and cash equivalents. The company’s traditional net debt stood at $1.9bn.

Reflecting confidence in its financial standing and future growth prospects, Penn announced plans to repurchase at least $350m of shares in 2025.