ESPN Bet continued to inch towards profitability in Q1 2024 with an adjusted EBITDA loss of US$196m.
The figure was down from an adjusted EBITDA loss of $333.8m in Q4 2023. Revenues, meanwhile, jumped to $207.7m, up from $31.5m.
Q1 was the first full reporting period available for ESPN Bet, which launched in November last year – midway through Q4 – and Penn Entertainment CEO and president Jay Snowden insisted the brand is continuing on the right path.
“ESPN BET continues to drive strong top of funnel demand due to the reach and affinity for the ESPN brand, which led to record online sports betting handle and icasino gross gaming revenue in the quarter,” he said.
Snowden admitted that “unfavourable hold” from major sporting events impacted ESPN Bet’s results but said the brand will undergo further changes ahead of the 2024-25 NFL season aimed at pushing it into a new phase of growth.
These will include “additional product enhancements” such as a refreshed home screen and expanded parlay offerings, as well as “unique media integrations with ESPN,” Snowden said.
“Our improved online product offering will help engage, reactivate and retain our expanding database, while also advancing our strategy to create a highly differentiated experience for sports fans and sports bettors,” he said.
Overall, Penn Entertainment recorded revenues of $1.6bn in Q1 2024, down from $1.7bn a year ago.
The group recorded a net loss of $114.9m after net income of $514.4m in Q1 2023.
Adjusted EBITDA dropped to $101.4m from $332.2m.
