PENN Entertainment Reports Strong Q2 2024 Financial Results

Penn Entertainment

WYOMISSING, PAPENN Entertainment, Inc. (Nasdaq: PENN) has released its financial results for the second quarter ending June 30, 2024. The company reported solid performance across both its retail and interactive segments.

Retail Business Performance

PENN’s retail properties generated revenues of $1.4 billion for the quarter. Adjusted EBITDAR came in at $496.6 million, with margins at 34.8%. CEO and President Jay Snowden credited the strong performance to the company’s skilled operators and diverse portfolio.

“Our retail business remained stable as consistent consumer trends, our diverse portfolio, and recent capital investments offset new supply in certain markets,” said Snowden. The company is focusing on growing its customer database and enhancing engagement through new technology, investments in gaming and non-gaming offerings, and partnerships in food and beverage.

Interactive Segment Growth

The interactive segment also saw notable progress. Revenues reached $232.6 million, including a tax gross-up of $82.1 million. However, the segment reported an adjusted EBITDA loss of $102.8 million.

Despite the loss, Snowden highlighted operational improvements. “In our Interactive segment, we delivered record quarterly gaming revenue driven by enhanced risk and trading processes and deliberate reinvestment strategies,” he said. PENN plans to launch ESPN BET in New York in late August, leveraging ESPN’s extensive reach to boost customer engagement.

Liquidity and Financial Health

As of June 30, 2024, PENN reported total liquidity of $1.9 billion, including $877.6 million in cash and cash equivalents. The company’s traditional net debt stood at $1.7 billion.

ESG Initiatives

PENN continues to focus on its Environmental, Social, and Governance (ESG) goals. The company awarded over $1 million in scholarships through the PENN Diversity Scholarship Fund. It also held its annual “Days of Listening” to gather team member feedback on diversity and inclusion. Additionally, PENN was recognized as one of Diversity Magazine’s “Best of the Best 2024 Top Diverse Employers.”

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Snowden concluded, “We are proud to support our team members and their families through initiatives like the PENN Diversity Scholarship Fund and our ‘Days of Listening’. Being named a top diverse employer is an honor and underscores our commitment to diversity and inclusion.”

Looking Ahead

PENN Entertainment remains optimistic about its growth prospects. The company is making progress on four development projects, all of which are on budget and on schedule. Cross-sell opportunities from ESPN BET customers and the expanded PENN Play™ database, which now includes 31 million members, are expected to drive future growth.

With these strong results and strategic initiatives, PENN Entertainment is well-positioned for continued success in the evolving gaming and entertainment landscape.

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