Penn Entertainment, Inc. · NASDAQ:PENN
Penn Entertainment — Q2 2024 Earnings Presentation
24 slides from Penn Entertainment's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
SECOND QUARTER 2024 EARNINGS PRESENTATION August 8, 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: 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 business delivered solid quarterly results as our industry- leading operators continue to execute across our portfolio Record quarterly NGR helped narrow our Interactive segment losses Q/Q despite a seasonally slower Q2 sports calendar Our PENN Play Database grew
Slide 5: Healthy Retail Business
HEALTHY RETAIL BUSINESS Our retail business remained stable as consistent consumer trends, our diverse portfolio, and recent capital investments offset known, new supply in certain markets Q2 Property Highlights: Strong market share growth in OH, MD, & IA, coupled with continued momentum at some of
Slide 6: Case Study: Hollywood Casino (Detroit, MI)
CASE STUDY: HOLLYWOOD CASINO (DETROIT, MI) Recent investments to renovate hotel rooms and introduce our first ESPN BET retail sportsbook have propelled Hollywood Casino at Greektown to impressive revenue and market share growth +6.5% Q2 Y/Y GGR Growth +89bps Q2 Y/Y Market Share Growth Hollywood Casi
Slide 7: Case Study: Ohio Properties
CASE STUDY: OHIO PROPERTIES Ongoing investments in our Ohio properties, including refreshed casino floors, expanded high limit areas, best-in-class sportsbooks, and new F&B offerings have resulted in strong YoY growth +5.1% Q2 Y/Y GGR Growth (PENN’s 4 OH properties) Hollywood Casino in Toledo, Ohio
Slide 8: ESPN BET Retail Sportsbooks
ESPN BET RETAIL SPORTSBOOKS The planned rebranding of our retail sportsbooks to ESPN BET this fall will drive increased retail visitation, build brand awareness, and enhance cross-sell opportunities Upcoming Retail Sportsbook Conversions: • Hollywood Greektown (MI) • Hollywood Kansas Speedway (KS) •
Slide 9: Retail Growth Projects on Track
RETAIL GROWTH PROJECTS ON TRACK We are making steady progress on our 4 growth projects, all of which remain on budget and are expected to deliver attractive returns upon opening by 1H26 Hollywood Casino Joliet (new site in development) v 9
Slide 10: Improving Interactive Financial Results
IMPROVING INTERACTIVE FINANCIAL RESULTS Our Interactive segment achieved record quarterly NGR despite a seasonally slower Q2 sports calendar, contributing to better-than-expected Revenue and Adj. EBITDA results (1) +65% Interactive Adj. Revenue & Adj. EBITDA ($M) $150.5 Q/Q Adj. Revenue % Growth $91
Slide 11: 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 as we introduce new product improvements Total Digital Database (M) Average Monthly Active Users (1) 11/14/23 3.8 465 3
Slide 12: Retaining Strong Base of Active Users
RETAINING STRONG BASE OF ACTIVE USERS Based on Sensor Tower data, we consistently hold a Top 3 ranking in Weekly Active Users among our top OSB and DFS competitors % Share of Weekly Active Users Total Time Spent on App (1) (Sensor Tower Data) (Monthly Average) Sensor Tower Data 10% 9% 9% 9% 9% 9% 9%
Slide 13: OSB: U.S. Hold Analysis
OSB: U.S. HOLD ANALYSIS Improved risk and trading execution and a higher parlay mix helped contribute to higher hold rates, and we will continue to add additional parlay offerings to our product over the remainder of 2024 Q2 ’24 OSB % Hold Illinois OSB: Parlays as a % of Total Handle (IA, IN, MA, MD
Slide 14: Upcoming ESPN BET Launch in New York
UPCOMING ESPN BET LAUNCH IN NEW YORK Our upcoming launch in New York, subject to regulatory approvals, will meaningfully expand our digital footprint and further leverage ESPN’s unparalleled sports media reach Organic User New York Acquisition Strategy (+) Est. Aug ’24 Launch 6% of the U.S. Populati
Slide 15: 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 • Aaron LaBerge officiall
Slide 16: OSB Product Updates: Pre-Football Roadmap
OSB PRODUCT UPDATES: PRE-FOOTBALL ROADMAP We are significantly improving the customer experience in ESPN BET and theScore Bet with our initial wave of product enhancements for the upcoming football season Refreshed User Interface & Experience • Home Page Improvements • Parlay Carousel Functionality
Slide 17: OSB Product Updates: Pre-Football Roadmap
OSB PRODUCT UPDATES: PRE-FOOTBALL ROADMAP We are significantly improving the customer experience in ESPN BET and theScore Bet with our initial wave of product enhancements for the upcoming football season ESPN Gamecast & Watch Options Links Profit Boosts Parlay Lounge Expanded SGP Offering in ESPN v
Slide 18: ESPN Integrations: Pre-Football Roadmap
ESPN INTEGRATIONS: PRE-FOOTBALL ROADMAP In parallel with our OSB product improvements for football season kickoff, our partners at ESPN are launching several new ESPN BET Integrations in their industry-leading digital products ESPN Fantasy App ESPN Fantasy App Scores Page & Home Dedicated Odds & Tar
Slide 19: ESPN Integrations: Pre-Football Roadmap
ESPN INTEGRATIONS: PRE-FOOTBALL ROADMAP Integration into the #1 Fantasy Sports App ESPN BET will be integrated into the category leading ESPN Fantasy App in the coming weeks, including deep- linked markets and personalized in-app betting offers Aug ‘24 #1 Ranked Fantasy Sports App in the U.S. 12M Fa
Slide 20: iCasino Product Updates
iCASINO PRODUCT UPDATES We are improving our iCasino product offering through exciting new game titles from Penn Game Studios, increased breadth of 3rd party content, and expanded promotional capabilities New casino game releases by Increasing breadth of Promo Credits in iCasino Penn Game Studios po
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: 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 Interactive segment revenues $ 31.5 $ 207.7 $ 232.6 Tax gross-ups (1) (107.0) (116.6) (82.1) Adjusted Interactive segment revenues $ (75.5) $ 91.1 $ 150.5 (1) Tax gros
Slide 24: PENN Entertainment
ENTERTAINMENT