Penn Entertainment, Inc. (PENN) reported a combined monetary efficiency for the second quarter of 2025, with stable outcomes from its retail properties however challenges in its Interactive division. The firm achieved $1.4 billion in retail income for the quarter, which matched expectations and was a notable improve of 6% over the identical interval in 2024. This efficiency, nevertheless, was overshadowed by an adjusted EBITDA lack of $62 million from the Interactive phase, which incorporates sports activities betting and that iCasino.
CEO Jay Snowden famous that the corporate had made vital strides with its omnichannel technique, leveraging each retail and on-line choices to ship regular progress. The mixture of on-line sports activities betting and that iCasino generated file gaming income, supported by product enhancements and the increasing ESPN Bet ecosystem. This continued innovation is a part of Penn’s long-term technique to boost its digital footprint and combine sports activities betting into its broader platform, a vital facet of its future progress.
Retail Operations Continue to Perform Well
As said within the firm’s press release, Penn’s retail operations remained steady through the quarter, pushed by stable shopper demand, particularly in areas unaffected by new competitors. The firm’s adjusted EBITDAR for retail properties stood at $489.6 million, representing a margin of 33.8%. The firm’s progress in these markets was highlighted by a 4% year-over-year income improve in areas not impacted by new provide. Moreover, Penn’s omnichannel engagement technique continued to bear fruit, with an 8% year-over-year improve in online-to-retail participant depend and a 28% rise in theoretical income.
Notably, Penn’s retail casinos noticed optimistic tendencies throughout all buyer segments, with elevated visitation and better spend per go to. As a part of its long-term technique to strengthen its retail place, Penn can be increasing its footprint with the upcoming launch of the brand new Hollywood Casino in Joliet, Illinois, which is able to open forward of schedule on August 11, 2025. This new improvement is predicted to additional solidify Penn’s standing within the aggressive regional gaming market.
While retail operations confirmed resilience, the Interactive phase, which encompasses on-line sports activities betting and that iCasino, confronted hurdles through the quarter. The phase recorded $316.1 million in income, however adjusted EBITDA losses amounted to $62 million. This marks an enchancment from final 12 months’s bigger losses, however nonetheless displays ongoing challenges.
Penn has made appreciable investments in its digital choices, significantly in its ESPN Bet platform, which continues to increase its attain. The platform’s standalone Hollywood iCasino app, for instance, has seen over 70% of its gaming income come from new, retail-native, or reactivated customers. Additionally, the corporate has enhanced its ESPN Bet providing with options like Player Insights, aimed toward offering a extra participating expertise for bettors.
Despite these enhancements, the corporate nonetheless faces vital obstacles within the aggressive sports activities betting panorama. Penn’s interactive enterprise just isn’t but worthwhile and stays in a transition section, with further work wanted to show it right into a constant income driver.
Share Repurchase Program and Financial Position
Penn Entertainment continues to concentrate on returning worth to shareholders. In the second quarter of 2025, the corporate repurchased 5.8 million shares for $90.3 million, persevering with its aggressive share buyback technique. As of August 6, 2025, Penn had repurchased $115.3 million price of shares and is on monitor to satisfy its objective of $350 million in repurchases for the 12 months.
The firm’s liquidity place stays strong, with whole money and money equivalents of $671.6 million as of June 30, 2025. Penn’s web debt stands at $2.1 billion, and the corporate’s whole liquidity, together with money, is $1.2 billion, offering a stable basis for future investments and operational wants.
Looking forward, Penn Entertainment is optimistic about its prospects regardless of the combined leads to Q2. The firm stays dedicated to its interactive phase’s future progress, with a concentrate on additional integrating ESPN Bet into the ESPN ecosystem. Penn’s partnership with ESPN continues to evolve, significantly with the upcoming launch of FanCenter, which permits bettors to wager on their favourite groups and gamers immediately by means of the platform.
Furthermore, Penn’s strategic concentrate on its core retail properties, together with continued funding in new developments, is predicted to drive future progress. The Hollywood Casino Joliet opening is only one instance of the corporate’s dedication to increasing its bodily presence in key regional markets.
Snowden additionally highlighted that macroeconomic components, significantly employment ranges, have a powerful correlation with Penn’s efficiency. With robust employment and steady shopper confidence, Penn is positioned to proceed benefiting from favorable financial circumstances. Although some exterior components, corresponding to vitality costs and shopper spending, can have an effect on the enterprise, Snowden stays assured that Penn’s diversified portfolio and powerful retail presence will assist the corporate climate any potential challenges.
