PENN Entertainment Q2 revenue meets estimates on retail segment strength
PENN•Outlook
- Company says positive trends in Retail and Interactive segments continued through July
- PENN says Interactive segment remains on track to deliver previously stated goals
- Company continues to focus on EBITDAR growth, optimizing overhead, cash flow, and deleveraging
Overview
- US casino and online gaming operator's Q2 revenue was flat, meeting analyst expectations
- Q2 adjusted EBITDA missed analyst expectations
- Company reported record retail segment revenues and improved profitability from new projects
Result drivers
- Retail segment strength - Co said record retail segment revenues were driven by broad-based consumer demand, with nine properties setting Q2 records and contributions from mid- and high-worth customer segments as well as growth in unrated revenue
- New developments - Recently completed development projects, including new hotel tower at Hollywood Columbus and Hollywood Casino Aurora, contributed to retail segment performance, with early trends showing strong VIP visitation
- Interactive segment improvement - Interactive segment delivered year-over-year adjusted EBITDA improvement, supported by growth in U.S. iCasino and Canadian operations, and new product launches in Alberta
