Slide 1: Fourth Quarter 2023 Earnings Presentation
FOURTH QUARTER 2023 EARNINGS PRESENTATION February 15, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends
Slide 3: Recent Company Highlights
RECENT COMPANY HIGHLIGHTS Generated >$2b in Property-Level EBITDAR in FY23 from our portfolio of 43 properties across the U.S. Broke ground on our four retail growth projects in Illinois, Ohio and Nevada, all of which we expect to complete by 1H26 Launched ESPN BET on November 14, 2023 simultaneousl
Slide 4: Retail Core Drives Omni-Channel Strategy
RETAIL CORE DRIVES OMNI-CHANNEL STRATEGY Our retail business remained healthy in FY23 and provides a foundation for our growth initiatives as we continue to execute on our long-term omni-channel strategy $5.7b 43 Properties in 20 U.S. States Retail Revenue (+8% vs. FY19) 29m+ $2b+ PENN Play Loyalty
Slide 5: Launch Summary
ENTERTAINMENT EsrniBET LAUNCH SUMMARY
Slide 6: Initial Demand Far Exceeds Our Expectations
INITIAL DEMAND FAR EXCEEDS OUR EXPECTATIONS Bolstered by the strongest brand in sports media, the launch of ESPN BET resulted in a much higher than expected wave of registrations, expanding our digital database by over 50% The launch of ESPN BET drove more FTDs in two months than we expected in the
Slide 7: Encouraging Retention with Discipline
ENCOURAGING RETENTION WITH DISCIPLINE Strong retention and consistent user acquisition have led to steady M/M increases in Cash Handle as our promotional expenses have started to normalize entering 2024 U.S. OSB MoM Trends Jan ‘24 Handle Cash Handle Cash Handle +289% vs. pre-launch levels (Oct ’23)
Slide 8: Retaining Strong Base of Active Users
RETAINING STRONG BASE OF ACTIVE USERS Based on Sensor Tower data, we have consistently held the #3 ranking in Weekly Active Users vs. our top peers, providing a foundation for market share gains as we grow our monetization per user % Share of Weekly Active Users (1) Total Time Spent on App (Sensor T
Slide 9: Reaching a Wide Range of Sports Fans
REACHING A WIDE RANGE OF SPORTS FANS ESPN BET has helped us reach new demographics of sports fans that we view as incremental to our database, resulting in increased parlay mix and a higher mix of non-NFL volumes Y/Y +63% Y/Y Growth in Parlay Mix (1) (of Handle) +360% Y/Y Growth in Parlay Handle (1)
Slide 10: Potential to Grow the Market
POTENTIAL TO GROW THE MARKET The launch of ESPN BET in partnership with the strongest brand in sports media highlights the potential to broaden the appeal of sports betting and grow the overall market Nov-Dec Market Handle ($b) (1) Jan-Oct ‘23 ESPN BET launched in Nov ‘23 Market Analysis of U.S. Mar
Slide 11: Positive Impact on Hollywood iCasino
POSITIVE IMPACT ON HOLLYWOOD iCASINO The successful launch of ESPN BET has bolstered our Hollywood-branded iCasino business, which has seen a significant increase in active users, providing a platform for future growth Average U.S. iCasino MAUs New Proprietary Content from Penn Game Studios Q4 11/14
Slide 12: Product, Integration, & Marketing Highlights
PRODUCT, INTEGRATION, & MARKETING HIGHLIGHTS ESPN.com Homepage
Slide 13: Initial Bet Mode Integration in the ESPN App
INITIAL BET MODE INTEGRATION IN THE ESPN APP January 11, 2024 6-Pack Integration • ESPN has enabled “Bet Mode” on its ESPN media app & website, providing users with an enhanced media and betting experience • Our ESPN BET 6-pack odds integration into the ESPN Media App provides a seamless click- thro
Slide 14: Brand & Marketing Highlights
BRAND & MARKETING HIGHLIGHTS Our comprehensive strategic alliance with ESPN is providing exceptional marketing value as we integrate directly with ESPN’s top shows and talent High-Value Segments & Integrations in ESPN’s Top Studio Shows Unique Activations Erin Dolan & Elle Duncan hosting our VIP Big
Slide 15: Brand & Marketing Highlights (Cont'd)
BRAND & MARKETING HIGHLIGHTS (CONT’D) Collaboration with ESPN’s best-in-class teams on ESPN BET’s branding and campaign strategy is driving high-quality, branded marketing content Talent-led Brand Campaigns ESPN.com & ESPN App Takeovers Elle Duncan Mike Greenberg “You Had To Be There” “The Elements”
Slide 16: Brand & Marketing Highlights (Cont'd)
BRAND & MARKETING HIGHLIGHTS (CONT’D) Multi-faceted marketing strategy with ESPN, leveraging key talent and our respective databases, is leading to attractive customer acquisition costs and efficiencies Disciplined Marketing Efficiency $150m in Annual Payments to ESPN includes: We will achieve great
Slide 17: Additional Growth Opportunities in 2024
ADDITIONAL GROWTH OPPORTUNITIES IN 2024 New York (1) 1st ESPN BET Retail Sportsbook (+) Pending acquisition of OSB access in the state of NY (+) Inaugural ESPN BET-branded Retail Sportsbook set with an expected launch before the 2024 NFL season to open in Detroit, MI in 2Q24 at Hollywood Casino at 6
Slide 18: Entertainment
ENTERTAINMENT