Penn Entertainment CEO and president Jay Snowden said there is an exciting roadmap ahead for the company’s online gaming segment, despite another quarter and year of adjusted EBITDA losses.
The operator of the ESPN Bet and Hollywood Casino brands reported Interactive revenues of US$275m for Q4 2024, up significantly from $31.5m in Q4 2023.
For the full year, revenues climbed 33.5 per cent to $959.9m, up from $718.8m in 2023.
And while adjusted EBITDA loss in a Q4 year-on-year comparison narrowed from $333.8m to $109.8m, the full-year comparison showed a widening of losses from $402.5m to $499.5m.
Snowden said the “significant year-over-year improvements” in revenue and adjusted EBITDA in Q4 were down to “disciplined promotional strategies” and “accelerated growth” in Penn’s online casino business.
The online casino business, he said, has been bolstered by the launch of Hollywood Casino in Pennsylvania and Michigan, where ESPN Bet account linking has been incorporated.
From a land-based perspective, Penn reported revenues of $1.4bn and adjusted EBITDA of $461.2m, with revenues not affected by new supply generating almost three per cent year-on-year revenue growth, Snowden said.
The CEO said Penn’s omnichannel strategy of cross-selling its online gaming audience into retail engagement has been key, with the number of online customers cross-sold into retail in Q4 rising by more than 64 per cent year-on-year.
“These efforts all contributed to impressive results in key markets, including Ohio, Massachusetts, Kansas, and Missouri, which helped balance the impacts from new supply affecting several of our properties,” Snowden added.
“Our four retail growth projects remain on budget and on track, with the new Hollywood Casino in Joliet expected to open in the fourth quarter of 2025, subject to regulatory approvals.”
Penn’s overall revenue for the quarter was $1.67bn, up from $1.4bn a year ago.
Q4 adjusted EBITDA rose from a loss of $39.6m to £$165.2m.
Q4 gaming revenue was $1.29bn, up from $1bn in Q4 2023. For the full year, gaming revenue was $5.17bn, up from $4.9bn in 2023.
