{"id":2708,"date":"2024-10-07T23:02:12","date_gmt":"2024-10-07T23:02:12","guid":{"rendered":"http:\/\/stakery.io\/?p=2708"},"modified":"2024-10-16T14:25:40","modified_gmt":"2024-10-16T14:25:40","slug":"penn-entertainment-lifts-guidance-for-interactive-unit","status":"publish","type":"post","link":"http:\/\/stakery.io\/index.php\/2024\/10\/07\/penn-entertainment-lifts-guidance-for-interactive-unit\/","title":{"rendered":"Penn Entertainment Lifts Guidance for Interactive Unit"},"content":{"rendered":"

Penn Entertainment (NASDAQ: PENN) told investors Monday that its interactive unit, which includes ESPN Bet, will post a lower-than-expected third-quarter loss.<\/p>\n

\"ESPN
The ESPN Bet logo. Penn Entertainment reduced the expected third-quarter loss for its interactive business. (Image: ESPN Bet)<\/figcaption><\/figure>\n

In a Form 8-K filing with the Securities and Exchange Commission (SEC), the regional casino operator said its digital gaming business will post a loss of $90 million to $100 million for the September quarter, better than the originally forecast loss of $115 million to $135 million.<\/p>\n

\n

Better than expected hold driven by a higher parlay mix from our improving product and lower promotional expenses accounted for the upside,\u201d according to the regulator document.<\/p>\n<\/blockquote>\n

Penn\u2019s commentary on hold and parlay mix could be further evidence of momentum for ESPN Bet<\/a>, which some analysts have recently mentioned, though there\u2019s also been talk that the online sports betting application needs to do more on the parlay front to better challenge the likes of DraftKings and FanDuel.<\/p>\n

The positive update on Penn Interactive\u2019s financials arrived about three months after the operator said it would cut an unspecified number of jobs<\/a> in the digital business.<\/p>\n

Penn Provides Solid Regional Casino Outlook<\/h2>\n

To the dismay of some investors<\/a>, ESPN Bet and Penn\u2019s prior online sports wagering efforts have tended to overshadow the company\u2019s regional casino operations, which are the primary source of its earnings and revenue.<\/p>\n

\n

While Penn noted its quarter-end financial process hasn\u2019t officially been completed, it did offer up a solid earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) forecast for its retail gaming operations. That could be to the delight of some investors amid commentary that some customers who frequent regional casinos have recently dialed back spending.<\/p>\n<\/div>\n

\u201cThe Company expects third quarter 2024 Retail Operations Adjusted EBITDAR to be in the range of $465 million to $475 million,\u201d added Penn in the SEC filing.\u00a0\u201cEstimated third quarter 2024 Retail Operations Adjusted EBITDAR was negatively impacted by approximately $10 million due to unfavorable hold rates within our Northeast segment and volume declines in our South segment associated with severe weather disruptions and hotel remodeling.\u00a0 As disclosed in our Form 10-Q for the quarter ended September 30, 2023, third quarter 2023 Retail Operations Adjusted EBITDAR was positively impacted by $14 million in business interruption proceeds related to Hurricane Laura, which was recorded in the South segment.\u201d<\/p>\n

Penn is scheduled to release third-quarter results prior to the open of US markets on Thursday, November 7.<\/p>\n

ESPN Bet September Numbers Impress<\/h2>\n

It might be a while before ESPN Bet \u2014 or any other competitor, for that matter \u2014 makes notable progress in encroaching upon the DraftKings\/FanDuel sports betting duopoly<\/a>, but growth has to start somewhere, and it appears Penn\u2019s sports wagering app is making progress.<\/p>\n

\n

At a Monday investor event at its M Resort & Casino in Henderson, Nev., Penn told analysts and shareholders that in September, ESPN Bet\u2019s monthly unique users surged 161% year over year while parlay users soared 211%.<\/p>\n<\/div>\n

ESPN Bet\u2019s parlay mix jumped 608 basis points year over year while its hold rate increased by 430 basis points as gross gaming revenue rose 151%.<\/p>\n

The post Penn Entertainment Lifts Guidance for Interactive Unit<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Penn Entertainment (NASDAQ: PENN) told investors Monday that its interactive unit, which includes ESPN Bet, will post a lower-than-expected third-quarter loss. The ESPN Bet logo. Penn Entertainment reduced the expected third-quarter loss for its interactive business. (Image: ESPN Bet) In a Form 8-K filing with the Securities and Exchange Commission (SEC), the regional casino operator…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[],"_links":{"self":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts\/2708"}],"collection":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/comments?post=2708"}],"version-history":[{"count":1,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts\/2708\/revisions"}],"predecessor-version":[{"id":2709,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts\/2708\/revisions\/2709"}],"wp:attachment":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/media?parent=2708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/categories?post=2708"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/tags?post=2708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}