Penn Entertainment Reports 2.9% Revenue Increase for Q2 2023
LISTEN TO THIS ARTICLE:Penn Entertainment has unveiled its financial outcomes for Q2 2023, including a 2.9% year-on-year revenue growth.
The figures show that revenues reached $1.67 billion for the quarter, accompanied by a net income of $78.1 million. This marks a considerable increase compared to the previous year’s $26.1 million recorded during the same period.
Earnings Call Focuses on ESPN Collaboration and Barstool Reacquisition
The Q2 earnings conversation focused on two developments for the company. The main one is an agreement with ESPN, which will lead to the rebranding of Penn’s Barstool Sportsbook as ESPN BET in the coming months.
As part of this partnership, ESPN is set to receive $1.5 billion in cash over a span of ten years, in addition to around $500 million in warrants for Penn Entertainment’s common shares. This deal is expected to boost Penn Entertainment’s digital footprint in the sports betting sector.
In other business news, Penn has decided to transfer ownership of the Barstool brand back to its creator, Dave Portnoy. While feelings after the acquisition were positive, it is now widely agreed that the outspoken nature of Barstool Sports does not fit well with Penn Entertainment’s corporate structure.
Second Quarter Earnings Show Strong Growth
Penn’s Q2 figures revealed the impressive performance of its Interactive segment, revealing a 66.2% year-on-year revenue growth, which equated to $257.5 million.
The Company experienced stable property level performance this quarter with each month showing sequential improvement. Furthermore, we’re thrilled about the successful re-launch of our sportsbook app, encompassing significant product advancements that greatly enhance user engagement, encompassing efficient navigation, swifter load durations, wider wagering arenas, amplified promotions, and integrated media synergies.
Snowden recognized that introducing ESPN BET during an ongoing NFL season would be challenging, but he remains optimistic and compared it to the successful launch of the Barstool sportsbooks back in 2020.
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