Penn Entertainment, Inc. (NASDAQ:PENN) reported second-quarter results on Thursday that surpassed analyst forecasts, with both adjusted earnings and revenue beating estimates.
Shares rose 1.88% in pre-market trading following the earnings announcement.
The casino and entertainment company posted adjusted earnings per share of $0.10, well above the consensus estimate of -$0.02. Revenue came in at $1.77 billion, topping the expected $1.73 billion and growing from $1.66 billion in the same quarter last year.
Penn’s retail casino segment showed strength, generating $1.4 billion in revenue and achieving adjusted EBITDAR margins of 33.8%. Its Interactive division, covering online sports betting and iCasino, set a new record for gaming revenue, though it reported an adjusted EBITDA loss of $62 million.
“Customer demand in our core business was stable as properties not impacted by new supply grew revenue by nearly 4% YoY,” said Jay Snowden, CEO and President. He highlighted “theoretical revenue growth across all rated age and worth segments, as well as positive trends in unrated play, visitation, and spend per visit.”
The company continued its share buyback program, repurchasing 5.8 million shares for $90.3 million at an average price of $15.47 during the quarter. Penn aims to buy back at least $350 million worth of shares in 2025, having repurchased $115.3 million as of August 6.
Penn also completed a note repurchase of approximately $233.5 million, eliminating about 9.6 million potentially dilutive convertible shares.
Looking ahead, Penn is preparing to open its new Hollywood Casino in Joliet on August 11, with other development projects reportedly on schedule and within budget.
Penn Entertainment stock price
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