Penn Entertainment released its Q2 2024 earnings report, indicating a slight decline in revenue by 0.7% to $1.66 billion year-over-year.
The Interactive division, which includes all online and retail sports betting (ESPN Bet), online casinos, and social gaming operations, saw its revenue decrease by 9.7% this quarter. The Northeast region contributed the largest revenue, amounting to $696.3m, which is up from $688m in Q2 2023. Meanwhile, the Southern market saw a decline in revenue, while the Western and Midwestern markets experienced growth.
Total gaming revenue reached $1.33 billion, which is a 3.1% increase from the same period last year.
The adjusted EBITDAR was $367m, a year-over-year decrease of 23%, with the Interactive division's adjusted EBITDAR down 703.1%, resulting in a loss of $102.8m. Only the Western and Midwestern regions saw growth in this area.
The company reported a net loss of $27.1m for the quarter, compared to a net income of $78.1m in Q2 2023.
Penn Entertainment's CEO and President, Jay Snowden, stated: "Our retail properties achieved solid performance this quarter as our top-tier operator team continued to execute across our diversified market-leading asset portfolio. In our Interactive business, improvements in top-of-funnel growth, risk and transaction execution, and enhanced promotional strategies led to revenues and adjusted EBITDA results that exceeded expectations.
"We remain focused on database growth and are driving engagement through new technologies, continuing to invest in our gaming and non-gaming offerings, as well as partnerships related to our food and beverage products with local and national partners.
"Cross-sell opportunities from ESPN Bet customers remain a key growth driver as our Penn Play database has grown to approximately 31 million members, including 3.8 million members in our digital database, marking an increase of over 80% since the launch of ESPN Bet.
"In our Interactive division, we achieved a record quarter for gaming revenues, benefiting from enhanced risk and transaction processes and a well-considered reinvestment strategy. As we launch ESPN Bet in New York in late August, we will continue our rigorous customer engagement practices, where we will benefit from ESPN’s extensive linear and digital influence.
Q2 results continue to unfold, with Inspired Entertainment also reporting significant growth in its Interactive division during the period.
