PENN Posts Mixed Q4 Results, Highlights Corporate Responsibility Progress

PENN Entertainment has published its Q4 results, providing an insight into how its business fared during the last three months of 2023. Despite certain setbacks, the period saw PENN deliver growth, driven by operational excellence and strong customer demand.

In Q4, the company’s revenues reached $1.39 billion. While this figure is lower than the one recorded in Q4 2022, the 2023 full-year revenue reached $6.36 billion and was more or less in line with the results reported a year ago.

Total adjusted EBITDAR stood at $112.5 million for Q4 and $1.5 billion for FY 2023. While the property-level quarterly EBITDAR was quite favorable, it was offset by EBITDAR loss in the interactive segment. Overall, the quarterly report shows a significant decrease in EBITDAR from the $468.3 million PENN Entertainment recorded in Q4 2022.

In addition, Q4 saw PENN experience a net loss of $358.8 million. For reference, PENN posted a net income of $20.8 million in the prior year period. Net loss for the year was $491.4 million compared to net win of $221.7 million in 2022.

PENN reported that total liquidity as of December 31, 2023, was $2.1 billion inclusive of $1.1 billion in cash and cash equivalents. The company concluded the quarter with a net debt of $1.6 billion.

Another notable Q4 highlight was the highly anticipated launch of ESPN BET, which was downloaded over a million times. For reference, ESPN BET is the result of a strategic alliance with ESPN.

PENN Entertainment’s CEO Praised the Company’s Progress

PENN Entertainment’s president and chief executive officer Jay Snowden commented on the quarter, praising the solid property-level performance and continued investment in the digital sector.

Despite the setbacks within the interactive sector, Snowden believes that the company’s investment in online products will drive significant long-term shareholder value. ESPN BET, for example, already demonstrated the opportunities the online sector can bring to the company.

ESPN BET has also attracted the mass market sports fan, highlighting the potential to expand the appeal of sports betting and grow the overall market. This foundation sets the stage for continued growth and market share gains as we introduce further product enhancements and deeper integrations into the ESPN media ecosystem.

Jay Snowden, president & CEO, PENN Entertainment

In the meantime, PENN continues to promote corporate social responsibility and pointed out that it was named one of “America’s Greatest Workplaces for Diversity” and “America’s Best Employers for Diversity 2023” by Newsweek and Forbes, respectively.

PENN also provided $7 million to charities and veterans-focused organizations, as well as $17 million in economic development grants. The company also completed its inaugural Scope 3 greenhouse gas inventory and established carbon abatement targets for 2024 and beyond.