PENN Entertainment, Inc. · NASDAQ:PENN
PENN Entertainment — Q4 2024 Earnings Presentation
23 slides from PENN Entertainment's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter 2024 Earnings Presentation
FOURTH QUARTER 2024 EARNINGS PRESENTATION February 27, 2025
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,” “intend
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In addition to GAAP financial measures, management uses Adjusted Revenues as a non-GAAP financial measure. This non-GAAP financial measure should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance wit
Slide 4: Recent Company Highlights
RECENT COMPANY HIGHLIGHTS Our Retail segment experienced solid operating results in Q4 as our diversified portfolio enabled us to offset the impact from new supply All four of our retail growth projects remain on schedule and on budget as we approach our first expected opening in Q4 ’25 (Hollywood J
Slide 5: Healthy Retail Business
HEALTHY RETAIL BUSINESS Our retail business experienced solid operating results in Q4, as our geographically diversified portfolio enabled us to offset the impact from new supply in certain markets Solid Q4 Operating Results +3% Y/Y Revenue Growth across properties not impacted by new supply Recent
Slide 6: Our Omni-Channel Advantage
OUR OMNI-CHANNEL ADVANTAGE We are attracting new and younger customers and driving market share gains by leveraging our refreshed properties, retail sportsbooks and digital offerings % of Customers Within 50 Miles of a Property Q4 Y/Y Retail 34% of our 4.1M Digitally Acquired Market Share Growth in
Slide 7: Hollywood Casino Joliet
HOLLYWOOD CASINO JOLIET The first of our four growth projects, Hollywood Joliet, is expected to deliver attractive returns upon its opening in Q4 2025, on budget and ahead of our initial timeline ➢ Hollywood Casino Joliet is moving to Rock Run Collection, a new mixed-use development expected to incl
Slide 8: Other Growth Projects on Track
OTHER GROWTH PROJECTS ON TRACK Hollywood Columbus Hotel Tower 1H 2026 Hollywood Aurora Relocation 1H 2026 1H 2026 M Resort Hotel Tower v 8
Slide 9: ESPN BET Retail Sportsbook Performance
ESPN BET RETAIL SPORTSBOOK PERFORMANCE Our initial 8 ESPN BET branded retail sportsbooks helped drive revenue growth and market share gains in Q4 ’24, and we have rebranded an additional 10 retail sportsbooks in Dec ’24 – Jan ‘25 Hollywood Columbus Hollywood Kansas Speedway Columbus, OH Kansas City,
Slide 10: Interactive Q4 Results
INTERACTIVE Q4 RESULTS We delivered significant Y/Y improvement in our financial results despite a materially negative industry-wide impact on hold from customer-friendly sports betting results in Oct & Dec ‘24 Interactive Adj. Revenue (1) Interactive Adj. EBITDA OSB Promo (% of Handle)(3) in $ mill
Slide 11: Strong FY24 Performance in Ontario
STRONG FY24 PERFORMANCE IN ONTARIO theScore BET Sportsbook & Casino continues to deliver solid results, with growth across several key metrics in 2024, and it is off to a strong start in 2025 with record monthly NGR in January (1) (2) Revenues Adj. Gross Profit Adj. Contribution Profit Y/Y Growth (F
Slide 12: Interactive Top-of-Funnel
INTERACTIVE TOP-OF-FUNNEL ESPN BET has driven meaningful growth in our digital database, and our improving product and media integrations helped us re-engage with customers this football season Total Digital Database (M) Average Monthly Active Users (1) 4.1 11/14/23 Since Nov ’23 ESPN BET Launch Lau
Slide 13: Product Upgrades Driving Parlay Growth
PRODUCT UPGRADES DRIVING PARLAY GROWTH Our focus on our parlay product offering is resulting in materially higher parlay usage & mix, which is driving higher structural hold rates for our online sports betting business % of Users that bet a Same Game Parlay 46% Sept-Oct ’23 Avg. 70% Dec ’24-Jan ’25
Slide 14: iCasino Q4 Results
iCASINO Q4 RESULTS We achieved record iCasino NGR in Q4 ’24 and expect a meaningful lift from our standalone iCasino product as we progress through 2025 Total iCasino Net Gaming Revenue NGR +61% Q4 Y/Y Growth Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 v 14 Note: Y/Y growth rates refer to Q4 ’24 vs. Q4 ’23 f
Slide 15: Successful Standalone iCasino Launches
SUCCESSFUL STANDALONE iCASINO LAUNCHES We launched our standalone Hollywood iCasino product in PA and MI over the Dec-Jan period ahead of schedule and are excited to pursue additional launches in the coming months (1) Pennsylvania Michigan New Jersey Launch Date: Launch Date: Next Up December 17, 20
Slide 16: Encouraging iCasino App Reviews
ENCOURAGING iCASINO APP REVIEWS Our new standalone Hollywood iCasino app debuted with strong reviews, catapulting Hollywood iCasino to the #2 overall ranking in Eilers & Krejcik’s ranking of U.S. iCasino products “The newly relaunched Hollywood Casino by PENN Entertainment is a big improvement on it
Slide 17: Strong Early Results in Pennsylvania
STRONG EARLY RESULTS IN PENNSYLVANIA We are off to a strong start with our standalone Hollywood iCasino product in Pennsylvania, which is driving sequential improvements for our overall PA iCasino business (1) Total Hollywood iCasino (PA) 10 Weeks Post-Launch vs. 6 Weeks Pre-Launch +16% +38% +35% Av
Slide 18: Big Game Omni-Channel Success
BIG GAME OMNI-CHANNEL SUCCESS Improved parlay mix led to better hold during the Big Game, while our local presence and omni- channel strategy helped drive new user sign-ups, VIP engagement and property visitation Retail & Omni-Channel Interactive +9% 34% +1500bps Y/Y Theo Growth Parlay Mix across Lo
Slide 19: Appendices
APPENDICES
Slide 20: Omni-Channel Strategy
OMNI-CHANNEL STRATEGY Retail Gaming Media & Content Online Gaming 42 Properties in 19 U.S. States Strategic Sports Betting Alliance with ESPN Online Sportsbook Live in 20 U.S. Jurisdictions + Ontario 32 Retail Sportsbooks in 15 U.S. States theScore Media App (Wholly-Owned) Online Casino Live in 4 U.
Slide 21: Newest ESPN BET Retail Sportsbooks
NEWEST ESPN BET RETAIL SPORTSBOOKS We recently unveiled 10 new ESPN BET branded retail sportsbooks, bringing our total ESPN BET retail sportsbook portfolio to 18 locations Recent Retail Sportsbook Rebrandings ➢ Ameristar Council Bluffs (IA) ➢ Hollywood Penn National Race Course (PA) ➢ Hollywood Dayt
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION For the Three Months Ended ($ in millions, unaudited) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Interactive segment revenues $ 31.5 $ 207.7 $ 232.6 $ 244.6 $ 275.0 Tax gross-ups (1) (107.0) (116.6) (82.1) (104.1) (132.8) Adjus
Slide 23: Entertainment
ENTERTAINMENT