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Penn Entertainment has released its financial results for the second quarter of 2024, showing a marginal 0.7% decrease year-on-year in revenue to $1.66bn.
The Interactive segment, which includes all online and retail sports betting (ESPN Bet), online casino and social gaming operations, saw its revenue drop 9.7% during the quarter. The Northeast segment brought in the largest revenue at $696.3m, up from $688m in Q2 2023. Meanwhile, the South segment saw a decline in revenue, while West and Midwest saw an increase.
Gaming revenue overall was $1.33bn, up 3.1% from the same period last year.
Adjusted EBITDAR reached $367m, representing a fall of 23%, with the Interactive segment seeing its adjusted EBITDAR drop 703.1% to a loss of $102.8m. Only the West and Midwest segments saw growth in this area.
The company reported a net loss of $27.1m during the quarter, compared with the net income of $78.1m seen during the second quarter of 2023.
Penn Entertainment CEO and President Jay Snowden said: “Our retail properties delivered solid results this quarter as our best-in-class team of operators continues to execute across our diverse portfolio of market leading assets. In our Interactive segment, top-of-funnel growth, improved risk and trading execution, and refined promotional strategies contributed to better-than-expected revenue and adjusted EBITDA results.
“We remain focused on database growth and driving engagement through new technology, continued investment in our gaming and non-gaming offerings, and local and national partnerships related to our food and beverage offerings
“Cross-sell opportunities from our ESPN Bet customers remain a key growth driver for us, as our Penn Play database has grown to approximately 31 million members, including 3.8 million in our digital database, which is an increase of more than 80% since the launch of ESPN Bet.
“In our Interactive segment, we delivered record quarterly gaming revenue driven by enhanced risk and trading processes and deliberate reinvestment strategies. We will maintain our disciplined approach to customer engagement when we launch ESPN Bet in New York in late August, where we will benefit from ESPN’s extensive linear and digital reach”
Q2 results continue to be released, with Inspired Entertainment also reporting its ps for the period, showing big growth in its interactive segment.
