PENN Entertainment Inc (PENN) Q3 2024 Earnings Call Highlights: Strong Growth in Digital and …

• Retail Revenue: $1.4 billion for Q3 2024.

• Adjusted EBITDA: $472 million for Q3 2024.

• Interactive Adjusted Revenues: $141 million for Q3 2024.

• Interactive Adjusted EBITDA: Loss of $91 million for Q3 2024.

• CapEx: Total of $132 million in Q3 2024, with $69 million for project CapEx.

• Total Liquidity: $1.8 billion, including $834 million in cash and cash equivalents.

• Slot Volume Growth: 3.6% year-over-year growth in the first five weeks of Q4 2024.

• Digital Database Growth: Approaching 4 million members.

• Monthly Active Users Growth: 127% year-over-year increase in Q3 2024.

• OSB NGR Growth: Over 200% year-over-year increase in Q3 2024.

• Fourth Quarter Revenue Guidance: $1.36 billion to $1.38 billion for the retail segment.

• Fourth Quarter Adjusted EBITDAR Guidance: $440 million to $460 million for the retail segment.

• Total CapEx for 2024: Approximately $500 million, including $275 million for project CapEx.

• Cash Interest Expense for 2024: Approximately $175 million.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• PENN Entertainment Inc (NASDAQ:PENN) reported strong year-over-year market share growth in Ohio, Massachusetts, and Kansas, which helped offset challenges in other regions.

• The company is seeing stable consumer demand and is profitably gaining market share in several markets not impacted by new competition.

• PENN Entertainment Inc (NASDAQ:PENN) unveiled seven new ESPN Bet branded retail sportsbooks during the quarter, contributing to higher parlay mix and structural hold.

• The interactive segment saw a 127% year-over-year growth in monthly active users and over 200% growth in online sports betting net gaming revenue.

• PENN Entertainment Inc (NASDAQ:PENN) has a strong liquidity position with $1.8 billion, including $834 million in cash and cash equivalents, and no debt maturities until 2026.

• The Northeast segment experienced unfavorable hold, and the South segment saw volume declines due to severe weather disruptions and hotel remodeling.

• The interactive segment reported an adjusted EBITDA loss of $91 million in the quarter, despite improvements in product and lower promotional expenses.

• PENN Entertainment Inc (NASDAQ:PENN) is facing pressure from new competition in markets like Nebraska, Louisiana, and Chicagoland.

• The company is experiencing a rough start to the fourth quarter due to low hold percentages, impacting their interactive segment’s performance.

• Construction disruptions at the L’Auberge Casino in Lake Charles are expected to continue affecting results until the project is completed by January 2025.

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