Penn Entertainment, Inc. · NASDAQ:PENN
Penn Entertainment — Q1 2024 Earnings Presentation
23 slides from Penn Entertainment's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Earnings Presentation
FIRST QUARTER 2024 EARNINGS PRESENTATION May 2, 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 Resilient property-level performance, with stable trends continuing into April following portfolio-wide severe weather through mid-February Achieved record OSB handle and iCasino GGR, while OSB results were impacted by lower than expected hold and spend per user PENN Play D
Slide 4: Healthy Retail Business
HEALTHY RETAIL BUSINESS Weather events in January and early February impacted all of our regional property segments; however, both visitation and volumes subsequently recovered with stable trends continuing into April We continue to capitalize on cross-sell opportunities from our retail sportsbooks,
Slide 5: Sequential M/M Improvements in Retail
SEQUENTIAL M/M IMPROVEMENTS IN RETAIL Several properties achieved record EBITDAR in the February-March period as both volumes and EBITDAR margins rebounded following the severe weather impacts Q1 Retail Performance Q1 Property Highlights: Revenues EBITDAR EBITDAR Margins $ 6 0 0 .0 4 5 .0 % • 8 prop
Slide 6: ESPN BET's First Retail Sportsbook - Detroit
ESPN BET’S FIRST RETAIL SPORTSBOOK - DETROIT We opened our first ESPN BET retail sportsbook on April 25th in connection with ESPN’s live coverage of the NFL draft at Hollywood Casino at Greektown, showcasing the property and brand to new customers Hollywood Casino at Greektown in Detroit, Michigan v
Slide 7: ESPN Marketing Highlights
ESPN MARKETING HIGHLIGHTS We have continued to expand the depth and impact of our content integrations with ESPN throughout the year as we now enter basketball and hockey playoffs, and the beginning of baseball season v 7
Slide 8: Interactive Top-of-Funnel Success Continues
INTERACTIVE TOP-OF-FUNNEL SUCCESS CONTINUES ESPN BET has driven meaningful growth in both our digital database and active user base, providing a strong foundation for future growth Total Digital Database (M) Average Monthly Active Users (1) 11/14/23 3.6 Launch 771 3.2 685 in 000s 2.1 1.7 272 0.9 196
Slide 9: Retaining Strong Base of Active Users
RETAINING STRONG BASE OF ACTIVE USERS Based on Sensor Tower data, we continue to hold the #3 ranking in Weekly Active Users among our top OSB and DFS competitors % Share of Weekly Active Users (1) Total Time Spent on App Sensor Tower Data (Sensor Tower Data) 12% 10% 10% 9% 9% 9% 10% 10% 10% 12% 12%
Slide 10: Interactive Revenue Is Trending Positively
INTERACTIVE REVENUE IS TRENDING POSITIVELY Interactive Revenue showed strong Q/Q growth, as promo expenses began to normalize after the initial ESPN BET launch despite a new state launch in North Carolina Promo Expense as a % of Handle Interactive Revenue ($M) U.S. OSB Total Online (OSB & iCasino) R
Slide 11: OSB: Record Handle in Q1
OSB: RECORD HANDLE IN Q1 We achieved record OSB Handle in Q1 ‘24 and strong Y/Y growth in GGR despite the negative impact of unfavorable hold for major sporting events in the quarter OSB Handle OSB GGR 11/14/23 Launch Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 +96% Y/Y Gro
Slide 12: OSB: U.S. Hold Analysis
OSB: U.S. HOLD ANALYSIS While unfavorable hold impacted us in the quarter, we have seen an improvement to start Q2 and are focused on closing the current gap in hold vs. our top 2 competitors Q1 ’24 OSB % Hold ESPN BET % Hold (1) (IA, IN, KS, MA, MD, MI, PA) (Total U.S.) ~8.5% 4.4% Competitor A Comp
Slide 13: OSB: U.S. Hold Analysis (Cont'd)
OSB: U.S. HOLD ANALYSIS (CONT’D) Our hold underperformance v. our top 2 competitors is driven primarily by a lower mix of parlays, which we plan to address with our updated product offering this Fall Illinois OSB: Parlays as a % of Total Handle Illinois OSB: Parlays as a % of Total Bets (Jan '24 - F
Slide 14: OSB: Avg. Spend Per User
OSB: AVG. SPEND PER USER Despite a dramatic Y/Y increase in MAUs, our spend per user has been lower than expected, which we believe is due primarily to lower share of wallet from identified gaps in product MAU & Average Handle Per MAU (U.S. OSB) (1) Monthly Active Users Average Handle Per MAU 8 0 ,0
Slide 15: iCasino: Record GGR in Q1
iCASINO: RECORD GGR IN Q1 Improved cross-sell from ESPN BET to Hollywood Casino led to record iCasino Handle and GGR in Q1, and we expect our standalone Hollywood iCasino app to be highly incremental once live(1) iCasino MAUs iCasino GGR 11/14/23 Launch Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q1 '23 Q2 '
Slide 16: Product Updates: Q1 Highlights
PRODUCT UPDATES: Q1 HIGHLIGHTS Smooth performance during the Big Game on our proprietary player account management and risk & trading platform My Bets page redesign, including Live Stat Tracking Released parlay repricing functionality to account for parlay bet legs that push or void Made enhancement
Slide 17: World-Class Technology Leadership
WORLD-CLASS TECHNOLOGY LEADERSHIP We have been thrilled with the top of funnel effectiveness of our partnership with ESPN and are hyper- focused on improving our digital offerings in 2024 and beyond to capitalize on our expanded user base New Role – Chief Technology Officer • On April 22, 2024, we a
Slide 18: ESPN BET Product Roadmap
ESPN BET PRODUCT ROADMAP Upcoming Football Season (1) Our upcoming ESPN BET product roadmap priorities will bring us closer to product parity with key competitors this football season and help activate our fast-growing database Refreshed User Interface & Experience • Home Page Improvements • Parlay
Slide 19: ESPN BET Product Roadmap: ESPN Digital Integrations
ESPN BET PRODUCT ROADMAP Upcoming Football Season (1) 300K Unique Visitors to ESPN BET from We are already seeing the benefits of our digital integrations links in ESPN’s Digital Products with ESPN, with a strong roadmap ahead during the month of March Expansion of Deep-Linked Odds within ESPN Digit
Slide 20: ESPN BET Product Roadmap: ESPN Fantasy Integration
ESPN BET PRODUCT ROADMAP Upcoming Football Season (1) Integration into the #1 Fantasy Sports App ESPN BET will be integrated into the category leading ESPN Fantasy App by football season, including deep- linked markets and personalized in-app betting offers Fall Fall 2024 2024 #1 Ranked Fantasy Spor
Slide 21: Appendices
APPENDICES
Slide 22: Omni-Channel Strategy
OMNI-CHANNEL STRATEGY Retail Gaming Media & Content Online Gaming 43 Properties in 20 U.S. States Strategic Sports Betting Alliance with ESPN Online Sportsbook Live in 18 U.S. States + Ontario 32 Retail Sportsbooks in 15 U.S. States theScore Media App (Wholly-Owned) Online Casino Live in 4 U.S. Stat
Slide 23: Entertainment
ENTERTAINMENT