Q2 2025 PENN Entertainment Inc Earnings Call Transcript
Key Points
- PENN Entertainment Inc (PENN) reported retail revenue of $1.4 billion and adjusted EBITDA of $490 million with margins nearly 34% for Q2 2025.
- The company saw revenue growth of 4% year-over-year in markets not impacted by new supply.
- PENN's omnichannel engagement showed positive results with online to retail player count growing 8% and online to retail theoretical revenue growing 28% year-over-year.
- The Hollywood Casino Joliet is opening on budget and nearly six months ahead of schedule, which is expected to offset the ramp down of the existing facility.
- PENN's interactive segment achieved record quarterly gaming revenue in both OSB and iCasino, with significant year-over-year improvements in adjusted revenue and adjusted EBITDA.
- PENN is facing challenges from new supply in key geographic markets, impacting properties like Margaritaville in Bossier City, Louisiana.
- The interactive segment reported an adjusted EBITDA loss of $62 million, including $2.9 million in severance costs.
- The company incurred $9.4 million in legal and advisory costs related to its annual meeting of shareholders.
- PENN's promotional expense as a percentage of handle has remained stable, but the company is facing competitive pressures in some markets.
- The company anticipates potential incremental legal expenses in the second half of the year due to ongoing shareholder litigation.
Greetings, and welcome to PENN Entertainment second quarter 2025 earnings call. I would now like to turn the program over to Joe Jaffoni, Investor Relations. Please go ahead.
Thank you, Emma. Good morning everyone and thank you for joining PENN Entertainment's 2025 second quarter conference call. We'll get to management's presentation and comments momentarily as well as your Q&A. During Q&A we ask that everyone please limit themselves to one question and one follow up. Now I'll quickly review the safe harbor disclosure.
Please note that today's discussion contains forward-looking statements. Forward-looking statements involve risks, assumptions, and uncertainties that could cause actual results to differ materially. For more information, please see our press release for details on specific risk factors. It's now my pleasure to turn the call over to the PENN's CEO, Jay Snowden. Jay, please go ahead.
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