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PENN Entertainment, Inc. PENN reported a narrower-than-expected loss in first-quarter 2025 results. Meanwhile, the top line missed the Zacks Consensus Estimate but increased on a year-over-year basis.
Following the results, the company’s shares declined 2.7% during yesterday’s trading hours.
Despite severe weather earlier in the year, the company showed resilience during the first quarter. Gaming volumes improved in March and remained stable through April and early May. PENN’s Interactive segment achieved record gaming revenues and posted strong year-over-year growth in both revenues and adjusted EBITDA, despite a weak sports betting hold across the industry.
PENN’s Q1 Earnings & Revenue Discussion
In the quarter under review, PENN reported an adjusted loss per share of 25 cents, which was narrower than the Zacks Consensus Estimate of a loss of 29 cents. The bottom line improved from an adjusted loss per share of 79 cents reported in the year-ago quarter.
Total revenues of $1.67 billion missed the Zacks Consensus Estimate of $1.7 billion. However, the top line increased 4.1% on a year-over-year basis. This upside was backed by the strong performance of the Interactive segment. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote
Revenues from the Northeast segment totaled $680.9 million, down 0.6% year over year. Revenues from the Midwest segment amounted to $288.3 million compared with $298.5 million in the prior-year quarter.
Revenues from the West segments totaled $129.7 million, up 0.4% year over year. Revenues from South declined 3.4% year over year to $288.3 million.
The Other segment’s revenues totaled $5.3 million, down 11.7% year over year.
Meanwhile, the Interactive segment delivered revenues of $290.1 million, up from $207.7 million reported in the prior-year quarter.
PENN’s Operating Headlines
In the quarter under discussion, adjusted EBITDAR was $329.2 million compared with $256.2 million reported in the prior-year quarter. The adjusted EBITDAR margin expanded to 19.7% from 15.9% a year ago.
Penn Entertainment’s Interactive division incurred an adjusted EBITDAR loss of $89 million compared with a loss of $196 million in the prior-year quarter.
Other Financial Information About PENN
As of March 31, 2025, PENN had cash and cash equivalents of $591.6 million compared with $706.6 million as of Dec. 31, 2024. Traditional net debt as of March 31, 2025, was $2.1 billion, down from $2.6 billion at 2024-end. Total liquidity as of March 31, 2025, was $1.5 billion.