Q1 2024 PENN Entertainment Inc Earnings Call Transcript
Key Points
- PENN Entertainment Inc (PENN) launched ESPN BET across 17 states simultaneously with a technology platform that performed near flawlessly.
- ESPN BET attracted significantly more registrations and first-time deposits than internal assumptions and predictions, showcasing the power of the ESPN brand.
- PENN Entertainment Inc (PENN) achieved record quarterly online sports betting and iCasino handle during the first quarter.
- The company has built a solid foundation and is now live in 19 jurisdictions in North America, with plans to expand into New York before the upcoming NFL season.
- PENN Entertainment Inc (PENN) has successfully built a database of over 3.5 million unique digital betters over the last 3.5 years, exceeding initial expectations.
- The overall launch of ESPN BET, while successful in most areas, identified a couple of areas for improvement, particularly in monetization and product offerings.
- PENN Entertainment Inc (PENN) experienced a lower handle per user than modeled and faced unfavorable hold percentages during the first quarter, impacting financial results.
- The company acknowledged that financial forecasting for ESPN BET has not been as tight and accurate as desired, indicating a need for improvement in this area.
- Monetization remains a significant opportunity and challenge, with ESPN BET currently seeing a lower spend per user compared to market averages and internal expectations.
- PENN Entertainment Inc (PENN) is still in the process of enhancing its product offerings, including parlay and player prop features, to meet competitive standards and user expectations.
Greetings, and welcome to the PENN Entertainment First Quarter 2024 Results Conference Call. I would now like to turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead.
Thanks, Shelby. Good morning, and thank you for joining PENN Entertainment's 2024 First Quarter Conference Call. We'll get to management's presentation and comments momentarily as well as your questions and answers. And during the Q&A session, we ask that everyone please limit themselves to one question and one follow-up. Now I'll read the safe harbor disclosure. In addition to historical facts or statements of current conditions, today's conference call contains forward looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 which involve risks and uncertainties. These statements can be identified by these forward looking terminologies such as expects, believes, estimates, projects, intends, plans, seeks, may, will, should or anticipates or the negative or other variations of these
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