PENN Entertainment Reports Mixed Q3 Results, Net Loss Increases for Nine Months

PENN Entertainment, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing mixed performance compared to the previous fiscal period. Total revenues for the three months reached $1,639.2 million, a slight increase of $19.8 million (1.2%) from $1,619.4 million in the same quarter of 2023. Gaming revenues also rose to $1,288.0 million, up $35.9 million (2.9%) year-over-year, primarily driven by growth in the Interactive segment.

However, for the nine months ended September 30, 2024, total revenues decreased to $4,909.1 million, down $58.4 million (-1.2%) from $4,967.5 million in the prior year. Gaming revenues for this period were $3,878.6 million, a modest increase of $9.1 million (0.2%). The decline in overall revenues was attributed to a decrease in food, beverage, hotel, and other revenues, which fell by $16.1 million for the quarter and $67.5 million for the nine months, largely due to the disposal of Barstool Sports.

PENN's operating income for the third quarter improved significantly to $67.5 million, compared to an operating loss of $(786.4) million in the same quarter of 2023. The net loss for the three months ended September 30, 2024, was $(37.5) million, a substantial reduction from a net loss of $(725.1) million in the prior year. However, for the nine-month period, the net loss increased to $(179.5) million from $(132.6) million in 2023.

The company’s total assets decreased to $15,514.5 million as of September 30, 2024, down from $16,064.2 million at the end of 2023. Total liabilities also fell to $12,453.6 million from $12,864.6 million. Cash and cash equivalents were reported at $834.0 million, a decline from $1,071.8 million at the end of 2023.

Strategically, PENN has made significant moves, including a long-term strategic alliance with ESPN for online sports betting, which commenced in August 2023. This partnership is expected to enhance customer engagement and market presence. Additionally, PENN completed the acquisition of Barstool Sports in February 2023 for approximately $405.5 million but subsequently sold it in August 2023, recognizing a pre-tax loss of $923.2 million.

Capital expenditures for the nine months ended September 30, 2024, totaled $261.7 million, an increase from $207.8 million in the same period of 2023. The company anticipates further capital expenditures of approximately $225.0 million for the year, including ongoing development projects funded by GLPI.

Overall, while PENN Entertainment has shown improvements in certain areas, challenges remain, particularly in overall revenue generation and net losses.