NASDAQ$PENN

Penn National Gaming Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

PENN Entertainment reported a decrease in net income but showed resilience at the property level, while ESPN BET continued to drive demand despite unfavorable hold from major sporting events.

PENN Entertainment's Q1 2024 results showed resilience in property-level performance with stable trends continuing into April, despite weather impacts in January and February. ESPN BET drove strong demand but was impacted by unfavorable hold. The company is focused on enhancing product offerings and media integrations with ESPN to improve retention and user spend. PENN Entertainment hired Aaron LaBerge as CTO to accelerate technology and product improvements. Total liquidity was $1.9 billion, and traditional net debt was $1.7 billion.

  • Property level performance showed resilience with stable trends continuing into April.
  • ESPN BET continued to drive strong top of funnel demand, leading to record online sports betting handle and iCasino gross gaming revenue.
  • Interactive segment results were negatively impacted primarily by unfavorable hold from major sporting events.
  • PENN Entertainment hired Aaron LaBerge as CTO to accelerate technology and product improvements.

Headline financials

Total Revenue

$1.61B

Previous: $1.67B-4.0%
EPS

-$0.76

Previous: $0.44-272.7%
Consolidated Adjusted EBITDA

$256M

No prior period
Adjusted EBITDA Margin

15.9%

Previous: 28.6%-44.4%
Net Income Margin

-7.2%

No prior period
Capital Expenditures

-$41.4M

Previous: -$63.2M+34.5%
Free Cash Flow

-$156M

Previous: $451M-134.6%
Net Income

-$115M

Previous: $515M-122.3%
Operating Income

-$21.4M

Previous: $199M-110.7%
Gross Profit

$1.61B

Previous: $1.67B-4.0%
Cash & Equivalents

$904M

Previous: $1.31B-31.1%
Total Assets

$15.6B

Previous: $17B-8.4%
Stock-Based Comp

$11.9M

Previous: $16.5M-27.9%

Revenue & EPS history

Penn National · Revenue · Quarterly

$1.61B

Q1 2024-4%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Penn National · $1.34B total across 5 segments · Q4 2019

  • Northeast
    $621M
  • Midwest
    $279M
  • South
    $268M
  • West
    $158M
  • Other
    $15.6M

Forward guidance

PENN Entertainment is focused on enhancing its product offerings and media integrations with ESPN to improve retention and user spend. The company is also progressing with its growth projects and is on budget and on schedule.

Tailwinds

  • Stable trends continuing into April following portfolio-wide severe weather through mid-February.
  • ESPN BET continues to drive strong top of funnel demand due to the reach and affinity for the ESPN brand.
  • Improved online product offering will help engage, reactivate, and retain our expanding database.
  • Four growth projects remain on budget and on schedule.
  • Launched ESPN BET in North Carolina with a VIP event featuring ESPN’s Stephen A. Smith.

Headwinds

  • Interactive segment results were negatively impacted primarily by unfavorable hold from major sporting events.
  • Financial results were impacted by lower-than-expected hold and spend per user.
  • Weather events in January and early February impacted all our regional property segments.
  • Impacts from known new supply and relative softness in our lower worth and unrated customer segments.
  • Net income (loss) decreased from $514.4 million to $(114.9) million year-over-year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+3.4%

Avg return

30 days after

41%

28 / 69 earnings

Positive

+27.6%

Q2 2020

Best reaction

-17.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-6.8%+4.4%
Q4 2025+17.0%+19.1%+9.8%
Q3 2025-10.5%-5.3%-15.5%
Q2 2025+1.0%+4.0%+10.2%
Q1 2025-2.8%+2.9%-0.8%
Q4 2024-0.1%-3.2%-17.1%
Q3 2024+6.6%+12.0%+7.9%
Q2 2024+5.7%+9.0%+4.7%
Q1 2024-8.0%-3.2%+6.4%
Q4 2023-17.3%-23.2%-21.6%
Q3 2023+15.9%+20.4%+30.5%
Q2 2023+1.2%+0.4%-10.8%
Q1 2023-12.2%-12.4%-12.3%
Q4 2022-4.2%-4.1%-13.1%
Q3 2022-0.4%+1.7%+6.7%
Q2 2022-6.7%-6.8%-14.5%
Q1 2022-11.4%-20.9%-15.0%
Q4 2021-1.5%+5.3%+1.5%
Q3 2021-15.1%-18.9%-34.0%
Q2 2021+8.5%+5.9%+23.3%
Q1 2021-5.2%-9.1%-11.9%
Q4 2020+18.2%+7.1%-0.8%
Q3 2020-4.6%-0.9%+29.5%
Q2 2020+27.6%+21.4%+41.1%
Q1 2020+16.9%+12.6%+128.7%
Q4 2019+6.4%+14.1%-25.9%
Q3 2019-1.8%+0.9%+5.4%
Q2 2019-3.0%-5.8%-1.8%
Q1 2019-4.9%-10.9%-10.4%
Q4 2018-3.1%-3.6%-11.9%
Q3 2018-4.4%-8.4%-8.9%
Q2 2018-8.5%-6.2%+1.1%
Q1 2018+14.1%+16.5%+31.2%
Q4 2017-6.4%-5.4%-7.5%
Q3 2017+0.5%+2.8%+8.4%
Q2 2017-5.5%-4.5%-1.6%
Q1 2017-2.5%-2.4%+5.1%
Q4 2016+3.7%+2.9%+7.9%
Q3 2016-1.1%-2.6%+5.9%
Q2 2016+5.1%+2.9%+0.8%
Q1 2016-2.3%
Q4 2015-0.4%
Q3 2015+3.9%
Q2 2015-1.9%
Q1 2015+3.1%
Q4 2014-1.9%
Q3 2014+4.3%
Q2 2014-3.6%
Q1 2014-12.6%
Q4 2013+8.0%
Q3 2013+3.6%
Q2 2013-8.2%
Q1 2013+3.6%
Q4 2012+5.0%
Q3 2012-0.9%
Q2 2012-2.4%
Q1 2012-0.5%
Q4 2011+1.6%
Q3 2011-2.9%
Q2 2011-5.6%
Q1 2010-0.5%
Q1 2011+2.0%
Q4 2008+4.5%
Q4 2010+4.5%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2010-0.9%
Q2 2009-0.9%
Q4 2009-0.9%

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