Penn Entertainment ( NASDAQ: PENN ) said it achieved profitability in the company's interactive segment despite an unfavorable sports betting outcome in the World Series. Management also said the quarter ended on high note overall with strong performance between Christmas and New Year’s across the portfolio. That positive trend is noted to have continued through January.
Revenue was up 0.9% in Q4 for Penn as gains in the Northeast and interactive segments offset drops in the South, West, and Midwest segments.
Adjusted EBITDAR fell 2.5% to $468.3M vs. $473M consensus and adjusted EBITDA was up 18.8% to $438.3M, including a $5.2M contribution from the interactive segment.
For 2023, Penn sees revenue falling in a range of $6.15B to $6.58B and and adjusted EBITDAR landing in a range of $1.875B to $2.0B. The outlook is said to reflect momentum in both the Retail and Interactive segments and the potential for further economic headwinds as well as increased supply in a few of our markets. "In 2023, we have numerous near-term growth opportunities, including the transition of the Barstool Sportsbook to our own proprietary technology platform in the U.S. this summer," noted CEO Jay Snowden.
Shares of Penn fell 3.49% premarket to $34.60 vs. the 52-week trading range of $25.49 to $51.72.
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Penn Entertainment reports Barstool-led segment was profitable in Q4