Q3 2024 PENN Entertainment Inc Earnings Call Transcript
Key Points
- PENN Entertainment Inc (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 (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 (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 (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.
Greetings and welcome to the PENN Entertainment third-quarter 2024 earnings call. I would like to turn the conference over to Mr. Joe Jaffoni, Investor Relations. Please go ahead.
Thank you, Cindy. Good morning and thanks everyone for joining PENN Entertainment's 2024 third-quarter conference call. We'll get to management's presentation and comments momentarily as well as your questions and answers.
(Event Instructions) I'll now read the Safe Harbor disclosure, and then we'll get into the call. Please note that today's discussion contains forward-looking statements. Forward-looking statements involve risks, assumptions and uncertainties, that could cause actual results to differ materially. For more information, please see our press release for details on specific risk factors.
With that, it's now my pleasure to turn the call over to the company's CEO, Jay Snowden. Jay, please go ahead.
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