WYOMISSING, Pa. - Penn Entertainment, Inc. (NASDAQ: PENN) reported a first-quarter loss and a slight decline in revenue, missing analyst expectations. The company's adjusted earnings per share (EPS) for the quarter was -$0.79, which was $0.22 below the analyst estimate of -$0.57. Revenue for the quarter was $1.61 billion, falling short of the consensus estimate of $1.64 billion.
Despite the earnings miss, Penn Entertainment's stock was up 2% in premarket trading following the earnings release.
CEO Jay Snowden highlighted the company's robust property-level performance, noting stable trends post-weather disruptions in February. The company's Interactive segment faced challenges due to unfavorable hold from major sporting events, impacting financial results. Snowden expressed optimism for the upcoming football season and the integration of product enhancements and media collaborations with ESPN.
Penn Entertainment's property-level revenue of $1.4 billion, adjusted EBITDAR of $479.0 million, and adjusted EBITDAR margins of 34.1% were emphasized. The resilience of the company's core business was evident despite weather-related impacts on regional property segments. The company's focus on customer loyalty programs and efficient capital improvements were credited for sustaining performance.
The Interactive segment, which includes online sports betting and iCasino, reported revenues of $207.7 million and an adjusted EBITDA loss of $196.0 million. The segment continued to attract new users and maintained a disciplined approach to promotions and marketing expenses.
Looking forward, Penn Entertainment is concentrating on product offerings and media integrations with ESPN, aiming to enhance customer experiences and retention. The company's liquidity position remains strong, with total liquidity of $1.9 billion as of March 31, 2024, including $903.6 million in cash and cash equivalents.
The company's commitment to corporate social responsibility was also noted, with recent initiatives focused on diversity, equity, inclusion, and sustainability highlighted in their 2023 Corporate Social Responsibility Report.
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