PENN interactive adjusted EBITDAR losses shrink as igaming championed

PENN Entertainment has reported a decline in its adjusted EBITDAR losses for its interactive division to $89m, although revenue reached record quarterly levels for the ESPN Bet operator.

Losses shrunk from Q1 2024, when the figure amounted to $196m, and also represented a positive momentum from Q4 2024 when losses came to $109.8m.

PENN said the shrinking losses were delivered despite “industry-wide unfavourable sports betting hold”, which had a $10m impact on adjusted EBITDA in the quarter.

There were positives from a revenue perspective for the operator, which also runs Hollywood Casino and theScore Bet, with the topline figure hitting $290.1m.

Revenue climbed almost 40% from Q1 2024’s return of $207.7m, although that does include a tax gross up of $128.2m, bosses noted.

Average monthly active users for the first three months of the year hit 560,000, down from 684,000 in Q1 2024.

The figure is also some way down on Q3 2023’s 771,000, which was when ESPN Bet was launched. There has been a steady increase since Q2 2024, however.

On online sports betting, management said it had successfully implemented several product enhancements in the quarter, citing improved UX, live streaming, ESPN account linking and the new Mint Club reward system.

Looking at igaming, PENN once again championed the rollout of the standalone Hollywood Casino app in Pennsylvania, Michigan, and New Jersey.

TheScore Bet Casino has also had its own independent app go live in Ontario. 

As per the investor presentation, the hold rate for standalone casino apps is 134 basis points higher than integrated casino offerings on ESPN Bet and theScore Bet.

PENN added that 70% of revenue derived from the standalone casino apps is incremental, while average players and weekly GGR have grown following setting the products live.

As such, Q1 saw record NGR and average monthly active users across igaming for the business.

On a group level, PENN’s revenue was up to $1.7bn from $1.6bn and adjusted EBITDAR amounted to $329.2m.

Jay Snowden, PENN CEO, said: “Our interactive segment generated significant top and bottom-line year-over-year growth, highlighting the improved flow through we are seeing in the business.

“Importantly, ESPN Bet and theScore Bet continue to provide a strong top of funnel for our online casino platforms, which achieved record gaming revenue in the quarter and are contributing meaningfully to our results.

“Our online casino momentum is bolstered by the compelling early results of our standalone icasino app in Pennsylvania and Michigan, which recently expanded into New Jersey and Ontario.

“Throughout the year we plan to continue executing our strategy to provide a differentiated, personalised digital offering while also working to deliver on our performance goals,” he concluded.

Earlier this week, PENN activist investor HG Vora filed a lawsuit against the company over a battle for board seats.

The post PENN interactive adjusted EBITDAR losses shrink as igaming championed first appeared on EGR Intel.

 ESPN Bet and Hollywood Casino operator says further product development will help with digital aspirations, as standalone casino apps continue to standout
The post PENN interactive adjusted EBITDAR losses shrink as igaming championed first appeared on EGR Intel.