PENN Entertainment has posted a seven per cent increase in Q1 year-on-year revenues to $1.67bn, up from $1.56bn.
The Interactive segment produced revenues of $233.5m, excluding tax gross of up to $92.3m, and adjusted EBITDA loss of $5.7m.
PENN went live with mobile sports betting in Ohio in January and Massachusetts in March, with Jay Snowden, chief executive officer and president, reporting that the company “remains on track” for having “full control” of its product roadmap in the US by July.
Snowden added that taking control of its US operations will enable it to “connect with our customers on a more personalised level and quickly add new features and betting markets to the Barstool Sportsbook,” as well as add to its igaming offering with new content and bonus mechanics and “drive stronger loyalty and retention” through an improved guest experience post-migration.
Snowden said Barstool Sports, which PENN acquired in February this year, “has more than doubled its annual revenues” since PENN’s initial February 2020 investment.
“Looking forward, we expect to unlock even greater value from the Barstool audience as we refine our cross-sell strategies and pursue new growth channels,” he said.
From a retail perspective, PENN posted Q1 revenues of $1.44bn and adjusted EBITDA of $511.2m.
Snowden said: “Growth in our older demographics and VIP play led to largely consistent performance across the majority of our retail properties.
“The regional shift in our gaming revenues year-over-year to higher taxed jurisdictions, and to a lesser extent, the settlement of certain property litigation matters, negatively impacted retail EBITDAR margins by approximately 100 basis points.”
Overall, PENN’s adjusted EBITDA of $332.2m was a decrease of 23.6 per cent year-over-year.
