Penn Entertainment, Inc. · NASDAQ:PENN
Penn Entertainment — Q3 2024 Earnings Presentation
19 slides from Penn Entertainment's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
THIRD QUARTER 2024 EARNINGS PRESENTATION November 7, 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 Stable consumer demand in our retail business was offset by unfavorable hold in the Northeast, severe weather in the South, and accelerated hotel remodeling Product improvements and a disciplined promotional strategy helped drive Q3 Y/Y OSB NGR growth of >200% September lau
Slide 4: Healthy Retail Business
HEALTHY RETAIL BUSINESS Stable consumer demand in our retail business was offset by unfavorable hold in the Northeast, severe weather in the South, and accelerated hotel remodeling at L’Auberge Lake Charles Stronger Start to Q4 +3.6% Y/Y Slot Volume Growth through the first 5 weeks of Q4, led by str
Slide 5: Growth Projects on Track
GROWTH PROJECTS ON TRACK Hollywood Hollywood Hollywood M Resort (NV) Joliet (IL) Aurora (IL) Columbus (OH) Relocation Relocation Hotel Tower Hotel Tower Ahead of Schedule 2H 2025 1H 2026 1H 2026 1H 2026 v 5
Slide 6: ESPN BET Retail Sportsbooks
ESPN BET RETAIL SPORTSBOOKS We unveiled 7 new ESPN BET branded retail sportsbooks in the quarter as we continue to implement our rebranding strategy across our portfolio Recent Retail Sportsbook (1) Rebrandings ➢ Hollywood Kansas Speedway (KS) ➢ L’Auberge Baton Rouge (LA) ➢ Margaritaville Bossier Ci
Slide 7: 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 further product improvements Total Digital Database (M) Average Monthly Active Users (1) 3.9 Since ESPN
Slide 8: Retaining Strong Base of Active Users
RETAINING STRONG BASE OF ACTIVE USERS The ESPN BET brand is attracting a strong base of users, with significant upside as monetization continues to improve Weekly Average Users #3 16% Sportsbook User Share v Note: The Sensor Tower data shown represents the week beginning October 28, 2024 through Nov
Slide 9: OSB: Q3 Results
OSB: Q3 RESULTS Our OSB NGR more than tripled Y/Y in Q3, with strong GGR growth and lower promotional expense levels vs. prior quarters GGR & NGR Promo Expenses (% of Handle) 15.5% 11/14/23 Launch 4.6% 4.5% 3.0% 2.8% 2.6% 3.0% Q3 '23 Q3 '24 GGR NGR Q3 '23 Q4 '23 Q1 '24 Q2 '24 Jul '24 Aug '24 Sept '2
Slide 10: OSB: September Parlay Mix & Hold
OSB: SEPTEMBER PARLAY MIX & HOLD Product improvements helped drive a material increase in our parlay mix to kick off football season, which in turn has resulted in higher structural hold Parlay Mix (% of Handle) Hold Rate % 28.3% 9.4% 22.5% 5.3% Sept '23 Sept '24 Sept '23 Sept '24 Note: Includes all
Slide 11: ESPN BET: Q3 & October Results
ESPN BET: Q3 & OCTOBER RESULTS ESPN BET experienced improved Y/Y growth in volumes in October, offset by customer friendly sports results that negatively impacted our Hold Rate % in the period Y/Y Growth Q3 October MAUs +162% +144% +42% +61% Avg. Handle Per MAU in Handle October grew +64% M/M compar
Slide 12: ESPN BET: Efficient Launch in New York
ESPN BET: EFFICIENT LAUNCH IN NEW YORK We executed a disciplined approach to ESPN BET’s entry into the New York market with our first full month of operations in October New York September 27th Launch Strong To-Date NY Cohort vs. Existing States (1) +228% Avg. Daily Handle +87% Avg. Deposit Size 10m
Slide 13: ESPN BET: Account Linking
ESPN BET: ACCOUNT LINKING We officially launched ESPN <> ESPN BET Account Linking on October 30th, which is foundational for future personalization across our partnership ecosystem Users who link their ESPN and ESPN BET accounts can now seamlessly track their bets in the ESPN App v 13
Slide 14: OSB Product: Coming Soon (Q4/Q1)
OSB PRODUCT: COMING SOON (Q4/Q1) We have exciting product enhancements coming soon as we execute on our product roadmap Improved SGP Experience Enhanced Branding & IP Upgraded In-Play Betting Improved Navigation & SGP Alternate Branded Streaming + Upgraded Discoverability Market Cards Featured Bets
Slide 15: Hollywood iCasino: Q3 & Oct. Results
HOLLYWOOD iCASINO: Q3 & OCT. RESULTS Hollywood iCasino experienced solid growth in the quarter, which has continued into October as we prepare for the initial launch of our standalone iCasino product in early Q1 2025 (1) (2) Y/Y Growth Q3 October MAUs +233% +168% GGR +53% +61% NGR +63% +83% (1) Init
Slide 16: Standalone Hollywood iCasino App Coming Soon Q1 2025
STANDALONE HOLLYWOOD iCASINO APP COMING SOON Q1 2025 Initial Standalone iCasino App Launch planned for Pennsylvania, with additional jurisdictions to follow (1) (1) Subject to receipt of regulatory approvals. v 16
Slide 17: Appendices
APPENDICES
Slide 18: 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 19 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 19: Entertainment
ENTERTAINMENT