Casino and sports betting company PENN Entertainment PENN announced third quarter financial results before the market opened Thursday.
What Happened: Penn Entertainment reported third quarter revenue of $1.62 billion, which was down from last year's $1.625 billion. The revenue total came in ahead of a Street consensus estimate of $1.61 billion, according to data from Benzinga Pro.
The company reported third-quarter earnings per share of $1.21, down from $1.40 reported in the third quarter of the last fiscal year.
Revenue by segment was as follows:
- Northeast: $687.0 million
- South: $308.2 million
- West: $135.1 million
- Midwest: $293.4 million
- Interactive: $196.3 million
The interactive segment posted an adjusted EBITDAR loss of $50.2 million in the third quarter.
"Our property level performance was stable in the third quarter reflecting solid results from our rated traditional core customer," Penn CEO Jay Snowden said. "We continued to see relative strength in several locations, including our casinos in Ohio, Kansas, Massachusetts and Missouri."
Snowden credited the launch of its Penn Play enhanced customer loyalty program as a driver of increased customer engagement, with over 27 million members in its player database.
The company ended the third quarter with total liquidity of $2.3 billion, including $1.3 billion in cash and cash equivalents.
Penn's financial results come one day before sportsbook rival DraftKings Inc DKNG is set to report.
What's Next: Penn provided an update on the launch of the highly anticipated ESPN Bet sports betting platform, which is being rolled out through a licensing partnership with The Walt Disney Company DIS.
ESPN Bet will launch on Nov. 14 and will be initially available in 17 states, according to the company's website.
The states included for launch are: Arizona, Colorado, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia.
"We are extremely excited to announce the planned launch of ESPN Bet prior to the active Thanksgiving week sports calendar that include the NCAA college football rivalry week and the Super Bowl rematch of the Kansas City Chiefs and the Philadelphia Eagles televised on ESPN's Monday Night Football," the company said.
As part of the launch, ESPN will have exclusive integrations that target 200 million loyal fans across their platforms.
"Looking ahead, we will be introducing even deeper platform and media integrations with ESPN over the upcoming months, providing an unmatched and seamless media/betting experience that will appeal to sports fans across the country."
The ESPN Bet website allows users to sign up with their email address to get updates and enter for the ESPN Bet Bristol Experience.
"The strategic alliance is expected to further expand our digital ecosystem and drive re-engagement with the millions of customers in our digital and retail databases, leading to compelling cross-sell opportunities," Snowden said.
PENN Price Action: Penn shares are up 7% to $21.01 on Thursday, versus a 52-week trading range of $18.35 to $39.35.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
