Second Quarter Revenue at Penn Entertainment deemed "strong," affirms CEO's statement
Penn Entertainment, a leading name in the gaming and entertainment industry, has announced its financial results for the second quarter of 2025. The company's performance showcases a balanced growth strategy, blending traditional casino operations with an expanding interactive gaming business.
Retail Casinos Shine
The retail casinos segment was the star performer, generating revenues of $1.4 billion and Adjusted EBITDAR of $489.6 million. This strong retail performance is a testament to the company's ongoing success in the land-based casino sector.
Interactive Segment Soars
The interactive segment, which includes online sports betting and iCasino, achieved record gaming revenue. This growth indicates a significant boost in cross-channel performance, suggesting that the digital gaming business is thriving alongside the traditional land-based casinos.
Online-to-Retail Synergy
The online-to-retail growth dynamic is evident in the record online gaming revenue, coupled with steady retail performance and the expansion of the physical casino footprint. The grand opening of Hollywood Casino Joliet, a large new land-based casino facility, has contributed to the retail revenue growth. The casino, which operates 24/7 and offers premium dining options and a loyalty program (PENN Playβ’), likely drives customer engagement both online and offline.
Steady Growth Across Segments
Pennβs total revenue for the trailing twelve months ending Q2 2025 was approximately $6.64 billion, reflecting about 5.51% revenue growth year-over-year. The company maintains strong liquidity with $1.2 billion available and is actively engaging in share repurchases to enhance shareholder value.
Net Loss and Adjusted EBITDA
Despite the revenue growth, Penn Entertainment reported a net loss of $18.3 million in Q2 2025. However, the Adjusted EBITDA for the quarter was $236.1 million, an increase from $212.1 million in the same period of 2024. The Segment Adjusted EBITDAR for Q2 2025 was $392.1 million, an increase from $367 million in second quarter 2024.
Industry Standing
Penn holds a market share of approximately 6.41% for the 12 months ending Q2 2025 relative to competitors.
Share Repurchases and Stock Performance
In the second quarter, Penn Entertainment repurchased 5,835,467 shares of its common stock in open market transactions for $90.3 million. The average price per share for the repurchased stock was $15.47. As of Wednesday, the company's stock closed at $17.02, a decrease of $0.37, or 2.13%.
Analyst's View
Jefferies analyst David Katz noted that the slightly better than expected land-based business and the wider than expected loss in digital are neutral for the shares. He also mentioned that the forthcoming catalyst pattern of new land-based projects and expected progress in digital are not yet enough to significantly move the shares higher.
In conclusion, Penn Entertainment's Q2 2025 results demonstrate a strong retail performance, significant growth in the interactive segment, and a balanced growth strategy that leverages both traditional casino operations and an expanding interactive gaming business.
The strong retail performance of Penn Entertainment's land-based casinos, as evidenced by the $1.4 billion in revenues and $489.6 million in Adjusted EBITDAR, is a testament to their success in the traditional casino-and-gambling sector. The interactive segment, consisting of online sports betting and iCasino, also experienced significant growth, further demonstrating the company's thriving business across both casino-games and digital platforms.
