Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss
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Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss

CEO Jay Snowden remained positive despite significant increases in losses at ESPN Bet

by - Thursday, May 2nd, 2024 2:17
Penn Entertainment
Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss its financial results for the three months ended March 31st, 2024.

Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss

Operating income decreased from $199.1 million to a loss of $21.4 million, as total operating expenses rose by 10.5% to $1.63 billion. A contributing factor to the increased expenses was the launch of ESPN Bet in August of the previous year, which came after the resale of Barstool to its founder, Dave Portnoy, for $1. This move came despite the initial acquisition cost of $388 million in February 2023.

Key Highlights Q1 2024

Land-based

  • Revenue –  $1.4 billion
  • Adjusted EBITDAR – $479.0 million
  • Adjusted EBITDAR margin –  34.1%

Interactive

  • Revenue – $207.7 million (including tax gross up of $116.6 million)
  • Adjusted EBITDA loss – $196.0 million

Groupwide

    Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss
  • Net Income – $114.9 million loss
    • Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss
  • Adjusted EBITDAR – $256.2 million

Jay Snowden, Chief Executive Officer and President, said:

Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss

We look forward to unveiling additional product enhancements and unique media integrations with ESPN ahead of the 2024 football season. Our improved online product offering will help engage, reactivate, and retain our expanding database, while also advancing our strategy to create a highly differentiated experience for sports fans and sports bettors.”

Speaking of the leadership of the company he added:

Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss

We are incredibly excited about the arrival of Mr. LaBerge, who is uniquely qualified to help us create a best-in-class digital experience for our customers, while further deepening our connections and integrations with ESPN.”

Snowden said of ESPN Bet’s current position and future growth:

“ESPN BET continued to attract new users this quarter while maintaining a disciplined approach to promotions and marketing expenses; however, our financial results were impacted by lower-than-expected hold and spend per user. On March 11, we launched ESPN BET in North Carolina with a VIP event featuring ESPN’s Stephen A. Smith, highlighting our opportunity to leverage key talent at ESPN. Our Hollywood Greektown property in Detroit was also the home of several ESPN broadcasts during the NFL draft held last week.

Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss
Jenny Tang
Penn Q1 Revenues Take a Big Hit as ESPN Bet Drives $196M Loss