WYOMISSING, Pa. - Penn Entertainment Inc. (NASDAQ:PENN) reported third-quarter results that missed revenue expectations but slightly beat on earnings per share, as the casino and sports betting operator saw stable consumer demand offset by unfavorable hold and weather disruptions. Shares edged up 0.62% following the release.
The company posted a loss of $0.25 per share, narrower than analyst estimates for a $0.26 per share loss. Revenue came in at $1.64 billion, falling short of the $1.66 billion consensus forecast.
Penn said its retail business saw stable consumer demand, but results were impacted by unfavorable hold in the Northeast segment and volume declines in the South due to severe weather and accelerated hotel remodeling. The Interactive segment benefited from better-than-expected hold driven by a higher parlay mix.
"PENN's third quarter results were consistent with the preliminary estimates we disclosed last month in connection with our investor event in Las Vegas," said CEO Jay Snowden. He noted the fourth quarter is off to a stronger start, led by several markets including Michigan, Ohio, and St. Louis.
The company recently launched account linking between its ESPN BET sportsbook and ESPN, which it called "foundational for creating a personalized sports betting experience across the ESPN ecosystem."
Penn's property level revenues were $1.4 billion in Q3, with adjusted EBITDAR of $471.7 million and margins of 33.8%. The Interactive segment saw revenues of $244.6 million and an adjusted EBITDA loss of $90.9 million.
For the quarter, Penn reported total adjusted EBITDAR of $348.4 million, down from $445.1 million a year ago. The company ended Q3 with $834 million in cash and cash equivalents.
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