PENN - Earnings call transcript Q4 2024 | PENN Entertainment, Inc.

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Operator

Greetings, and welcome to the Penn Entertainment Fourth Quarter 2024 Earnings Call. I would now like to turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead.

Joseph Jaffoni

Thank you, Nicky. Good morning, everyone, and thank you for joining Penn Entertainment's 2024 Fourth Quarter Conference Call. presentation momentarily management's your well to Q&A. get and as comments as We'll we please that X during ask And Q&A, everyone X question follow-up. limit and to themselves

discussion disclosure. Now note safe review statements. harbor I'll that the today's contains forward-looking Please

that Forward-looking results cause to statements actual could and materially. involve assumptions risks, uncertainties differ

details more For for please factors. risk our see specific information, release press on

please With company's CEO, the call over that, to it's now Snowden. my go Jay, pleasure to turn the ahead. Jay

Jay Snowden

CFO, here Thanks, and our Felicia management Joe. LaBerge our morning, other Wyomissing Good senior George Head CTO of . as members Aaron Hendricks, joined of our in Todd I Interactive, Operations; as Head well team. our with everyone. and of

least more I'd my and this with of year. on remarks have into intention headed to we confidence lie importantly, outlook, XXXX. Underscoring our the at we like million both our exciting focusing opportunities and retail front by XXXX this where morning prepared in calendar our begin of common us and that stock we're $XXX are to digital where in of announced Penn in repurchase today our at shares

adjusted the supply to competition. continue in been healthy X retail Todd you a and led industry, We see have investor gaming business margins in very of operators market growing or As presentation, markets, can that out. we new the best of by tax by not and unquestionably impacted operations share Slide on have has best most consistently regional core prove the the George that our our

move combined continued we million over including several database digital retail properties we cross-sell over we the bet from forward. anticipate continuing at X last with making our books ESPN new investments our as trend customers, capital Given sports our that gaming years, have been of the

the case across far that known the weather the as so remains of XXXX events quarter-to-date, certainly country in well. Outside

a delivering extremely growth year to multiyear positioned phase. this well start are on We

returns coming projects and under highlighted anticipate the over currently on growth X have attractive construction, Slides are X we years. that generate X retail We which will

new to quarter on the entertainment It the of that fourth City, in those the of us or competitive significant markets supply opening do Bluffs, and new to be property in the a XXXX. XXXX Joliet, of like across are markets feels the supply first any first able X open a will in noting projects as be Live is anticipate and expected for recent half anchor in key the impacting Council say One throughout is also than Louisiana, Illinois to open attraction other few years. brand-new track mixed-use destination, Louisiana, no the Penn the in to Bossier supply and the Chicago other Cordish in great and worth U.S. time we finally XXXX. of not hitting new soon

side, some digital are the owners are assets. momentum gaining and proud we extremely On valuable the of

North a XXXX. America of for and the As and margin you Canada. year Ontario performance good of in #X profit our us gross delivered XX, Slide on is in Score in strong another contribution very Bet can Score continue be in to story market we and terms revenues, see today,

in the loyalty to Alberta, We country. and Score we for believe given only in once requisite across strength will the grow approvals affinity Canada launch all the the pending brand

XX. Next, on as highlighted Slide

Pennsylvania and Hollywood of launch stand-alone We the launched iCasino Jersey pending intend final in regulatory in New products and approvals. recently to state soon have Michigan

momentum the is and promising are tangible. results the early, still While

XXXX additional shows. UI on regulatory technology own because plan this pending and we app recent We UX In fact, approvals. possible in U.S. our the it iCasino Optimizations place. by stack. we laser-focused speed in launches to jumped Eilers rankings up spots are second iCasino We final like X and only were Hollywood

As to you continue given to trends sports footprint in a expect XXXX these and large databases Hollywood forward and retail cross-sell property betting positive strong beyond. we online in flow-through and moving and iCasino know, profile all our branded addition from represents margin which to

have bet ESPN online Lastly, sports our we business. betting

live been have for XX months We about now.

We have committed strong partner. a brand

We have fully technology a stack. owned

business Aaron an also have to as team LaBerge, seen, We incredible happens be running bottom. magnet led we've a by to who talent top the from

potential have activities green seeing partnership to ESPN. of our but throughout XXXX together, to results. spend work we better with unlock as optimize the identified are ESPN, We do partners our more deck, closely improved with and resources in highlighted ways Working our full the to and to at we've shoots value deliver

and strategy We share that on are market we to believe live ESPN are in-app continue the momentum handle deeper their of optimized we effectiveness confident accelerate throughout launched exactly enhanced focused integrations such and recently as our enhancements stronger ESPN engine promo in our growing products throughout through and cross-sell XXXX. top activities retention can year. streaming, the and doing funnel personalization ESPN Fantasy with products, and We with that, via

growth other younger take it a we to retail online omnichannel once-in-a-lifetime an and one, industry effective ages our to industries flywheel we contending with for represented database a strategy in to online few gaming we our vice a versa omnichannel potentially and betters has in customers betting a issue key of to to was world, for of build we and was to for around prove as market in of up to to strategic to revisit decades. Number all enhancing years belief experience. age a worked customers options opportunity back. decided and we opportunity absolutely viewed value the X Cross-selling like growth digital and have a introduction an industry. playing mobile also digital from is believe believe our that that overturned That all few industry the and XXXX, been out. PASPA pursue ways. would an transformational continuing also moments would demographics Digital sports much in When attract with opportunity I you and audience was why

of embarked growth are our not database in digital X journey. on known. exponential the shows XX new digital have million would members likely we otherwise since we our this There that database Slide

cross-sell are Importantly, XX highlighted these out property. now grow the country miles sits proving And of the back a average themselves we X. database mid-XXs share key members XX XXXX. our markets our within has approximately live customer since Penn XX% of database in across the as opportunities approximately of Furthermore, active the Slide -- in as on continuously play come Penn down years and age

we command digital we to at was scaled believe a pursue higher and the growth second a profitable stand-alone reason decided provide build opportunity two, business valuation. also a would to long-term and Number Penn, one

and change. still that much haven't intact, we believe opportunity strategy While about very to yet. met this are one that's We

have ESPN as significant quarter are the mostly to year of Bet. We in behind financial ultimately along quarter quarter to loss since launch XXXX breakeven expect investments of us in throughout significant the with and now. the of a continuously build we with lower previously, we our deliberate profitable We believe anticipate improve approach our As part losses ending plan the sequentially digital, the results. said digital first representing fourth database a XXXX, year each the delivering

million specifics get year-over-year of roughly XXXX improvement In in the the EBITDA digital guidance more XXXX into at segment a total, $XXX Felicia we anticipate midpoint. will momentarily. around delivering

are completely XXXX. profitability our digital maintain that, aligned will our be in focus in with achieving that We shareholders' and on segment belief profitable

have and significant assets brands, We depending our we and IP continue value conclude we levers to we as on results have XXXX. Further, pull we that have we enhance will results execute. believe enter as can and improving financial great deliver XXXX value to

I'll turn Felicia. to it And over now with that,

Felicia Kantor Hendrix

Jay. Thanks,

previously quarter and we and reported ranges. guided slightly high of $X.X of end fourth the $XXX 'XX, of the million, For fourth of revenue quarter revenue above retail EBITDA EBITDA both adjusted billion our

segment had Retail in a finish steady increases to Our demand fourth the year the with quarter. throughout strong

excluding loss betting Interactive and the EBITDA For Customer-friendly impacted interactive results gross-up million revenues Interactive tax $XXX.X was adjusted $XXX million. sports $XX our were adjusted million revenues, Interactive and adjusted by $XX million. our negatively of a EBITDA adjusted skin by in quarter segment,

earlier, upon mentioned is Jay As strategy expectations. our delivering omnichannel

Super XXXX Slide XX points Bowl to highlights. our

Baton Orleans drive and Our with our helped Rouge properties. drive local in to VIPs visitation new presence sign-ups, engage at and New

our In growth from theoretical growth year-over-year. fact, across and across X% properties by our theoretical all guests increased year-over-year, our properties increased X% Louisiana

and as a XX% by than hit of also which is mix year-over-year placed We Super X,XXX is Bowl with year-over-year. XX% a a more parlay which users percentage handle, parlay points basis basis up X,XXX points more bet, game same than records of up

landlords, million our development expenditures including cash release in in CapEx. quarter, The table on Page planned. cash the in in and and today Of of related on to of X projects. cash our $XXX CapEx fourth the X.X will payments total REIT billion, turns ended quarter, cash exit was to covenant our $XXX we by numbers. million project and We of moving quarter liquidity summarizes interest of equivalents. with relief total cash our Further, CapEx inclusive quarter, our the cash delevered total $X.X Now to the taxes, earnings $XXX million the we as X

announced approved trajectory million to our to below capital $XXX this our under XXXX to authorization. and resume share threshold us throughout expect deleveraging which returning to previously continue we well enables as We our repurchase covenant remain shareholders morning

more to Louisiana, land property throughout Hollywood supply XXXX the potential significant first the couldn't X As to year new quarters in with be it projects of growth anticipated do the our and in open the customer mentioned, the half we Bossier and live known demand, XXXX. we this Council opening of than quarter beginning and guidance, not or continue the Bluffs, retail projects, and us in X other City, XXXX. Louisiana relates competitive of anticipate that about Jay in strength any recent expected We the to impacting see are new fourth in other of supply opening Joliet as excited Chicago

be interchange, Run X, hotels, and tenant located and collection, in on to the anchor entertainment a restaurants, living. adjacent which retail, Hollywood will include it be I-XX will I-XX property new will noted Slide As an land-based optimally Rock brand-new the Joliet the residential

Joliet range We our $X.XX at is to costs versus XX,XXX retail our EBITDA to With $X.XX revenue X-week closure at an of only expect and location XXX,XXX vehicles X- to include not XXXX new guidance roughly billion. the to estimated is Hollywood our to guidance mind, anticipated current $X.XX daily the benefit all billion in does range $X.X this This new Joliet billion guidance to an transition any property. site. to related from billion

look with final a We on our working quarters upcoming the sharing forward closely opening in regulators and details to are date. additional

improvement a is EBITDA excluding XXXX and of to $X.XX assumes million, loss range our basis of Interactive, and of For is XXX at $XXX our the market loss which revenue is to XXXX. EBITDA billion $X.XX a This in BET New our York, handle $XXX range implying jurisdictions, million guidance a ESPN guidance improvement midpoint. $XXX year-end point from X.X% million live year-over-year billion guidance share a

X%, year-end XXX OSB our U.S. from Xs iCasino to we which basis promotional handle live market GGR hold fourth share, in assuming X.X% in mid- Xs to 'XX low the the a of compared X.X% percent assuming increase in are for expense quarter -- high point we're of a the is a jurisdictions, XXXX. as of and

year, skin million. $XXX tax we the assuming are gross-up a of For

anticipated does Alberta. in guidance launches XXXX not Our Missouri include or

in to year positive generate We lower losses the expect EBITDA culminating in quarter. sequentially, the each of fourth quarter

first $XXX loss of the to EBITDA of million, a guidance guidance loss $XXX $XX and range 'XX, our to $XX is million For a our interactive of million range is million. revenue quarter

the of in gross million tax We skin are of up first assuming 'XX. $XXX quarter

a our of in us and investor also interactive OSB EBITDA first from standpoint, Our presentation. results midpoint. roughly at terms and Super hold investment the quarter our quarter incremental This reflected a early year-over-year as deliver helping EBITDA in guidance revenue million of is growth off guidance to we start stand-alone iCasino Though states. launches good percentage Bowl Hollywood are of reflects $XXX our quarter in first this represents the improvement users good spend interactive across numerous 'XX an

grow We're in flow will and anticipating XXXX. be company slight approach XXXX profitability free total positive by we EBITDA year-end we cash beyond Interactive as segment our in and

for balance projects end and project segment operations and other XXXX. will $XXX as includes XXXX sheet racing our we CapEx. for have open. million access which at the Joliet corporate M CapEx of XXXX, as By year, inclusive X the the could growth be $XXX the expect million, Resort to of well the our million expense our expected For $XXX of and to as GLPI's to $XXX at begin versus CapEx majority completed in be our we million Columbus of is Total hotels discretion EBITDA,

$XXX Aurora, as We 'XX. city a for from in are project of of reminder, GLPI And quarter this Aurora open also million from to the the will first for million we draw committed which the receive will year. $XX

cash of net roughly the Net have the the share and forecast we taxes million expense, quarter shares fourth our full count $XX and diluted be million inclusive cash for converts. of For interest year roughly shares end of of the to XX $XXX typically XX XXX.X expected million XXXX. million dilution was approximately the million as for we are from basic share year,

And now it back I'll turn to Joe. over

Jay Snowden

least million momentum and announcement for of opportunities the us. stock great see that of to lie excitement at $XXX our highlights repurchase this year in Thanks, Lisa. front our XXXX, in We

We to growth X projects, our continue share. gain properties the opening first market retail of are

ESPN shoots investor our are promising also time be Penn an . to a seeing be Penn. We time green great in start. at at Hollywood offering and is stand-alone great believe to a it's a iCasino bet the we to It's off

that, first And to could Nicky, over if the we for turn it with you question.

Operator

Instructions] Bank. from our first Deutsche Santarelli [Operator Carlo We'll take with question

Carlo Santarelli

I to thoughts in these specifically. provided return expect on just Historically, I Illinois kind very projects. have wondering for of of when did though, of And X I wanted moves been make to projects kind a the land-based just in the you want the friendly. terms you similar focus about second Felicia, of riverboat decisions? the your color. ask, I would are lot of financing, those financing? X timing goes transactions GLPI, was about with how of X you're kind thinking And into different kind what to of

Felicia Kantor Hendrix

not towards to opening we will before EBITDAR so What saying work at continue are generating and Thanks, the we've including that been is that Yes. take Carlo. what we probably we we're to close financing properties. those rent

-- comes financing I So that at assume model, your for would opening. would I

Carlo Santarelli

up those talk targets the Understood. And you're as side you bit? obviously about Okay. XXXX? a color about little measure decision lot then, business OSB tree and provided frame bit talk shaping yourself kind maybe for the OSB the thinking on You the little a specifically 'XX. through you of you Jay, a could of how time guys around Can against going

Jay Snowden

to. happy Yes,

side provided I on be would what of think Those expectations well of good our some in as terms pretty numbers. terms detail share, in full are Felicia market both as the sports year iCasino. betting

terms through end would So as throughout XXXX. the have culminating the move I control we levers sort closer in at think move we obviously, we of this that the get highest we market to the And level with and year, of see improvements to of about the share to XXXX, year. expect in and of market access as of share we

announced very we the that not of the seat sides of do summer on -- clear partnership this right it 'XX, compete both now to expected back, partnership that. step with a to taking a to of And for when podium. made we're just our pace in we And ESPN

and if the course, gaming I our of hitting calendar you the the we well. And betting not expectations we're of then to just the we're approach the both expect online approach through levels business end operationally. to improvements would the the you've move business, -- that end levers of we're So as in got that through we continuing sports moving year, XXXX year the as say on as show that

to But be in standpoint obviously, to you're from dollars right ESPN be structure to cost of going built that's trending be that's expect because if not then be. that where is We've business. us level. a where player operating the direction, not a at expects to business scale got scale in a our for cost digital you're us that lot marketing now a a there's of we a category Obviously, structure

you to both at and heads of ESPN we disposal. we levers third have a get laser-focused. of mean, good relationship expect as with place. down, sides are you anniversary And really our So hit into I course, in our be the XXXX,

best and obviously, plans that the XXXX you anniversary, then in need place We But for for in have approaching have hitting level we third that clause we're other interest. not as to XXXX. will that a X-year tremendous contract to, reason, the you're their what's both sides in do have

And there. so that's out always

of we're It's Michigan. we're our with Pennsylvania there, in showing great throughout have the but do the to early, conviction that we side in iCasino year. we and anticipate what improvements so ramp. encouraged start and terms launches We're the to seeing off on continuing And by a

sports Our perspective from season a better season. the handle betting, football we began than football share ended we

make we progress to So much as plan as that's move we It's or wanted not good. to as we make forward.

enhancements great have call. great And on upon we Aaron a product this team. will we I'm But touch have that sure

continue feel a we But we to pull we levers great can need into got we to really 'XX head make that partner, XXXX. certainly good if have and we and we've can we if as We like progress. conclude don't,

Operator

Jonas question Truist Barry Our next comes Securities. from with

Barry Jonas

ramp potential afterwards? to your more like way And thinking right opportunities funding once renovation potentially GLPI of are the I there at this about see blocks? did projects open? land-based council announce some What's the be

Jay Snowden

hit We've hard current I'll X then, been first hit and really Todd, terms those Feel X the of about internally good the working projects. that on the construction. in obviously a of one, really are under you bit projects the can ramp. second growth

of keep to these have who construction and projects been by team on and amazing design led Karl, budget. able ahead or on an schedule has We Mike

the the that that. based land similar we're on these could an some water and with And to really Joliet really internally but other Aurora have we've generate that days, hard projects returns. moving team you'd of at new we to vessel we that very taking a nailed and the proud hear from for sense don't do You think in and look many old really companies from that be high amenities,

projects, X say, And a returns we've project, we're but of internally. on to ready we're terms the couple announce, our So working up of to that similar from of Councilluff others that competitors stronger of more later nice details come and would and not the is you given opens four of other for that opportunities hard the that our feel think anticipate those, really I really Louisiana I on much year for some from that in returns Joliet, seen this in seeing profile these first we about at return makes projects.

answer the of also So the have And hotel in is opportunities yes. well. couple we as expansion a portfolio

Todd George

X-month Thanks, there be Jay. that ramp to knowing trim marketing. move, to when more thing thing open lot amazing up, always obviously staff you about your a you a a ramp on that you hired. The in at you time the really turnover I will by already would efficiencies, creating these of those looking of ramp your some only bit can literally with I a maybe Barry, mean, more half has property, or projects, start add you a a little XX-day, question because spend you're Typically, overhire line open

have already strong very a active, You database.

Joliet, better much simply . in much you're Aurora property, case So of better a simply and to offering. you're moving a the --

can accommodate land be are demand towers. adding the blow There [indiscernible], away will partners partnering, in of and the so that's Columbus And make that be announcing sure it's we restaurants much-needed people some think to we'll the I some going the in the in other space meeting third-party differences all just as shortly there. we and be area. will Chicago there for a projects out case then we in hotel And few

the of Joliet the infrastructure And well place half look the future. be in that first and fairly I So end for in I just of at ramp would year. opening the think quick, this there of year, Aurora then next positions in us all the right again, to up now because that's

Barry Jonas

your And increases gaming We'd maybe get tax just a Surprisingly, curious what just for question, get do just not thoughts you but Great. of on response. online an follow-up. in your risk love just thoughts the to there. then can to and that's

Jay Snowden

happen this case. and I that assistance deficits for up best approach, on to the the doesn't budget for to think is a unfortunately and are And Yes. opposed engage for our facing approach looking headline and solve at that to states how way, are the of years this over with and over best Look, for industry increases. now, tax reading as X the in been decades waking it always

relates There So to budgets to industry. industry. that's our a opportunities think, help looking for several in entire bit of that are a to are some I their frustration, holes states as the plug it

actually And long. increases this, the best not is list way to the is attack clearly. quite Tax

market of many illegal many sports in we're these dealing of unregulated and on unregulated and competing offshore pay sports states in We that as competitors futures in are now unregulated illegal games offering betting sweepstakes are and well games regulated. with untaxed. markets, against tax. and many taxes, potential We as And compete untaxed gray again, betting, that are these against casino cases or that not operators they're that like don't are states

way, industry a whole look a the in to of something lot that a our in that And at legal. some one we the are increase, in to terms it's or control there's of there the pursue course, states in betting, have as of So as if not tax And where shape be what some sports state. could industry, over, dollars could there already cases, of specifically benefits form. maybe introduction and you opposed

dollars. the they state terms I driving sense probably most operators think, lot then there. where gotten tax have option. of already makes Again, online the a if is in cases, many an casino, And incremental introduction and omnichannel of are another in the certainly some structured online state think every I not states There of is some have states same. casino, for for strategy

take states The mining gaming And I in as in structured were differently. casinos even the that away old legalized in example, up some are then cases, are an geographically. Colorado. located hours In population be some towns the Colorado X.X was where mountains, center. there when from to

you of dollars that, like states hundreds employees going that's in in of invested paid online cases, is has industry millions dollars gaming, thousands So taxes. legalize hundreds of and if in and the absolutely to hundreds, millions hurt it some of of brick-and-mortar residents

that of of But doesn't been well lot So largely the make casinos a then the there's for a being plenty where Pennsylvania industry as spread are sense. that's states good a I out throughout think state, the and as state. win-win example, for

So there's different paths here.

best in some I to industry forward for here ends in the think doesn't all increases are as usually of in it down, where it and read both budget very plugging are of always And gaps think It but you've at that sit the states potential alternative I the where where way up. and some up. that's start active need And of find obviously taxes are states engage we the that looking ends there, to to headline assistance talk. solutions. move usually is

Operator

question comes of Kelley with Shaun Our Bank America. next from

Shaun Kelley

parameters own first the BET just some incumbent that app. of you on care today? seeing here? kind you've Felicia, maybe Could us the little sense of or a base much to or at market said, where that on the And already just from in give improving wondering exit far for in market quarter with and Hollywood your of thoughts ESPN put little think trending as been could much progress share. or is you dig are rates of like things so in iGaming assumptions the about if bit kind on stand-alone progress we you business Jay improvement the we of how the how a

Jay Snowden

Yes. in now Pennsylvania launched side. Again, on iGaming early We're in December, in the just we Michigan seeing January. it in

first us, months over time basis we Pennsylvania So the in -- don't X a up in roughly share market picked have we and first we ton points Michigan about but behind XX but it's early, month. the of of in XX

saw extrapolate to We So to take it QX. that's we're don't like you than real that in progress grind should improvements end that I level betting month-to-month iGaming been I wasn't more just a exiting mentioned making market say, but there, share. it anything good. Sports be share really other and higher. feel iGaming. want beginning progress market we were from of we in that football has of here with The QX to seeing of with growth at

expect we a share faster be sports betting. So and growth to iGaming market at clip than

that's in in You more but can Hopefully, of X some other are see points of X that basis like up for the can in XXX up betting, picking sports assumptions year the off, conservative. casino. XXX is our one maybe a the those off pick both bit. for If

at fourth across will the build momentum terms both cross-selling the but can we as ending the by X% the gaming continued over anticipate well the obviously, betting, of of year offerings as database. quarter the share, so in it products highest anticipate to and And there's year, we different quarter. and being rate online of in the over be side, ways that And you year, see our on that play continue which would best sports we out new

Shaun Kelley

just And theme, just in a follow-up, of Jay, Great. some you unlock then but had further sort about of ESPN to as and opportunity you mentioned remarks, with the full same the BET there. kind prepared of as you the value think arrangement

committed integrations. initiatives get we cost there anything X-year until relates kind deadline? that it Or to to, as balance You even is contractual just right examples. of be optimization the view more I to probably you Or of that that not your gave comes spend. too it is to it the in when especially guess, necessary seem and maybe tweaks more here, do those Most now? necessary do to hard to Is the could some proactively restructure

Jay Snowden

of part that. hit I'll Well,

Aaron have of think that jump Look, of terms what share as grow year. throughout us levers. we earlier. lot I can really in, the move a mentioned I anticipating in we we're to our help starting

ESPN, but structure with we this have in at We cost for today scale. of structure marketing place pretty outside that a a ESPN. just spend built the we significant spend today, have not be have in to place business is And a

not And trending business to to structure, be at we're scale, so making just your if then cost that's you're changes XXX.

the now, with head and like continue improvements. our feel extremely we're aligned to right we see execute down, got plans well So to place, right in partners and we've

If seeing categories. those to other year, adjustments you're you're cost those through you improvements as the in make go not large continuing

Aaron LaBerge

excited. super we're But Yes.

First of last we all, November. launched

this. into year a past just we're So

And so have we both sides a learned bit. quite

opportunity link call, think just tens hyper linking was thousands. accounts. I initiative the account we And I just think ESPN about ESPN and maybe the you we of executing are where mean the talked XXX,XXX shared that focused people today. on that had BET is our last I in can on I We launched earnings

look users at OSB the or you percentage data deck, you the linked of can XX Slide flowing. side. If are side on If large of active our our our personalization growth XX see monthly MAU is that

personalized you year. We to are launching starting see that will throughout the experiences build

that integrated coming game with which big Challenge, are world in the product. the through BRCA we biggest tournament natively is integrated We the and into a have deeply integration NCAA ESPN,

that's more to deeper and think excited we're And integrations yield results. so about going on very to continue so meaningful, are to We and The and that. forth. just get going positive

how our Jay smart and are really sides all as doing, are attention. all full functioning we're our of of again, those everything it's our So said, marketing both to about got working spend, optimize integrations and getting continue we

this continue is to optimistic So Jay said. going we're grow, to that as

Operator

from Montour comes question Barkley. next Brandt with Our

Brandt Montour

going tunnel the So question seems throughout you're terms going things the year the you where pressure. Obviously, point at you -- as the start would supply it brick-and-mortar side. like see to that cadence pressure move out the maybe are see to you end the is to results? as think the the of you flesh you lap Could quarterly through to first that the lessening on in year of into light we

Jay Snowden

opening" south which that's getting of now only is I Omaha, are and week. because just would I in of that the XXXX Bossier in in later last Louisiana, yes, and introduction the "new The X to City, project closer others obviously, say Todd live in gaming XXXX. the we was Nebraska, suburbs Chicago visited opened really the in projects lapping

then would And as go through jump going year, here, once XXXX, you throughout as any you year less anniversarying cadence new should will forward. Todd so get the obviously, a into get about I us hitting the say, impact really the past And way thinking Cordish, these? as in you significant anniversary you're in we we and you as don't see supply see

Todd George

or own. hit properties you I opening Yes, mean new in the new JV, next and this offerings your remarks, big or on

ahead markets can properties. So improving forward. to looking you some got at offerings be us with and supply, new I couple of think QX, really from our exciting of We greatly of QX bringing would new quarters QX 'XX. We've start a QX,

create to bit those of again, us. spend I the case behind come we're these a upfront new case market, of you in people more putting So new And think, Louisiana, impact. as into the in some of an in little a offerings Nebraska

that to out, You spend they're once people to forward. drive going that database. upfront more demonstrate But gravitate a little loyalty moving bit to where then settles

Brandt Montour

now. you in contrast that Jay, on Alberta, I position a operate could and in gray operated Ontario just But guess compare not and -- have you currently. But in you follow-up then And and mean, comments are market when given there obviously Alberta, that's held I key launched sure position for a market a that because the I'm market. if eventual or your launch Ontario. great Canada exciting the guys launch Great. a

on other same if in that, in the just sort think positive of that your you ramp that Ontario look be Alberta? So thoughts today how would any contribution could

Jay Snowden

where in a share Yes, Brandt, operator to currently market not were Ontario standpoint. Alberta in are very an from for we would We pre-legalization Ontario. similar expectations our be

So we a gray operators really we did incumbent performed quite been have to market operating fight launch. at against some when well, And obviously. of more it was have who

iCasino a business have great has Ontario have not been love brand a resonates in that's but with -- ramping people and nicely. sports, our it who We casino quite we just product also

it look over You active was monthly XXXX great. user the iGaming growth at 'XX, in in

CPA, think there. good us the works that and in Canada doesn't top-of-funnel is know no product acquisition, policy a that a a sense and I market a we also have now for from better actually I inducement So there's what think we what

that. that on all based dynamic share larger well And competing are your performed that really case in the the products you same like here very expect your So against U.S. and operators of brand have It's experience. We and the the maybe be as in to Alberta well.

Todd George

Yes.

in Ontario we the to the coverage have same do MAU in as score. We Alberta

that the as as area is score the and mind it share in just So in score integration strong is Ontario. terms and of in

we similar So when very we results launch. expect do

Operator

from comes with question next Joe Susquehanna. Our Stauff

Joseph Stauff

member, Obviously, and improvement Jay, product also terms in Jay I'm that. Disney fall. integrations. there component and for amplifying, specifically the for and about preparing a mileposts digital. the terms of ask maybe user are these I That's nature. talked launching product say, following my like, up Are question. that coming if Madness kind like the right, Aaron things ESPN They say, of huge other was big effort, where about? an on think growth or I Aaron, can you're you in pretty we it the understood DXC of bedding in important there up are and felicia. March in that of of, on terms mile of is wondering to wanted and that just in posts -- first how

wondering the headwinds competitive in you on competitive And assess just portfolio, then second portfolio current today? question, to I no you say, I are as was just where headwinds, you're that any the wanted land-based there headwinds. clarify think seeing new it

Aaron LaBerge

Well, the I'll first. take

excited the and you the see integrations video we powerful speak can incredibly live to ESPN's year, in our those on share about with not So of and that world like. ESPN certainly the integrated product look XX,XXX is produce I terms in obviously, aspirations. service, for are which what are think When DTC distribute or pretty events it a plans they business, for wait about can't I'm but to that deeply going

and an we ESPN launching of just started just fact, BET a matter week. this As rolling with out live video streaming

in will I of think be our jurisdictions PA the rest in week. live the through Colorado through live we're

important. betting So live is certainly

events integrate of able having a that to powerful. with being some those live and So produces partner is

service. they on coincide but imminent a about talked streaming only Football, Maddeness going the which likely same new the Fantasy plans for March We because most to as course, massive have flagship it's with well. we of scale is Of have with timing

So and at of getting use we're on there's looking are It's it adding It's our is going our the We're parlay better. same expanding streaming, about. look better. offerings. month. we're a the summer that each continue parlays, better better we're you game lot our if excited look, in app app, end added. But to feeling markets More towards getting being

going product We better. the with to out a -- feel continue continue that we our here in of us doing be from of what that ESPN we And to pieces we're from we're perspective obviously to get gives course, one is key confidence then, as that competitive maximizing guidance.

Todd George

then most year, did new pretty the doing Bossier great South, behind across on, last us. going the year, again, remarks. to visited have on thing last our several live significant behind those Felicia But bunch no what new very comp I turnout, property putting of would second opening the just as think volumes Nebraska, in weekend. one, City. been us the land impact and the last only those in really to But properties. should some Jay the weather of healthy weather, absorbed other weekend this, mentioned But a Yes. in new the in with And be Chicago add I another without into The we this similar area impact us. weather touched QX this just are in We Jay one, we've headwinds, as related of well

that we've everything the think than X other forward, absorbed going last both mentioned. we I So

Jay Snowden

think Todd it there, that was bit certainly in it's hit it little just has year. to-date, lot year-over-year, February, last worth been the weather mentioning And a the a quarter than I worse

Now Midwest fantastic should see in to month same when we so results We week last a be the would week pent-up Northeast weekend, weekend. the weather with basis. that this breaks, demand, a had year-over-year the but and good the far upcoming good weekend. these this states you'll a It's from expect a mentioned been the a March as Todd definitely of weather on and lot impact just an . is February see

Operator

question comes with from Our Macquarie. Chad next Beynon

Chad Beynon

effort On to program. those. you on in 'XX $XXX lot to 'XX Great the a see and the made repurchases, of away million chip

that goal? Is And why talk that, number? or $XXX cap then So can on the that percentage you versus secondly opportunistic? leverage did just was number? of at a of market you million about a kind right what's How arrive programmatic

Jay Snowden

well. do it, previously, little Yes. substantive you're And if overall. that I to approach the our it Chad, Yes, just is number, be of I a cap year less market opportunistic. we to the be right we want be the it did north throughout to the the would that's picked like opportunistic something, think, XX% more move this as and year and felt going because you as way of certainly we say will through we year. mostly approach, programmatic and that's That's that

Chad Beynon

the in space I terms the last in retail normalized. of a were election what felt pretty the post commentary year enthusiastic obviously, the then terms just saw from you the in then on in know And more lot the business, gave of we've the other helpful. quarter, heard start trends you you that presidential And was of October. peers of

to So look if to tiers continue nonweather as the can about strong. in your you you pretty beat we that led think about normal was the talk database and just that mentioned, if the of retail QX case as periods, just

Todd George

the is to volumes great the out again, led really to nonweather-related QX of some be of way most continued are that and think we're and way seeing of our that all the consumer people our the leading we're time taking and kind uncertainty. up It entertained. coming still peers necessarily going pretty this what you the in forward that days. markets, I in people who the having I in result absolutely strength noise some nation. it's of the But QX the getting as case. Again, Yes, not said a into out understand was just to And think the election won. see Post-election, of could of

. us. a So that's been great for story

Operator

comes with Our next from question Citizens. Jordan Bender

Jordan Bender

about your the us caught fairly but you help correctly, $XXX kind that the end around inputs I million. out wide the like? into the guidance, look that you of does range range just end full kind guidance range top of the of it what go parse Felicia, interactive at of bottom If talked seems year can versus

Felicia Kantor Hendrix

Yes.

help will you the take low is that if sensitivity the the the of range. So end you midpoint,

okay? share, lower points would low XX and points BET ESPN market be the midpoint, end lower, share would be of XXX to minus that on the and The and be end of would high market iCasino range basis the range points. the then take that's you basis or If the basis . range XXX plus

Jordan Bender

online? you're like And cross-selling seeing sign-ups a sports it then branded with any customer uplift the quantifiable there acquisition seeing you're nice you're impacts from seems or books. at properties question, my your ESPN on brick-and-mortar next Are of that properties in digital terms the

Todd George

Bowl Orleans Listen, in Yes. the was Super us. great the game, New a for big opportunity

seeing Just Louisiana. seeing sign-ups, tremendous of all our around properties account

a we representation. nice So have

over. resort area, Rouge in well. but properties and also nice X Bossier Orleans one saw the in sent Mississippi and a amazing [indiscernible] a we players we Baton both tremendous but tournament as in have New really cross-play, have golf We a held really and

the these properties, all we're of become truly destination. tremendously. this that And sports part really what Mississippi the benefited country have across less then books So seeing of benefit entertainment is

beverage, a of with books sports the you you taken food years Vegas great the straight have we've So bit it's friend. entertainment, it's AB, to great where would there it's approach in a the and that go different more found traditional over

a omnichannel our strategy. all that big and has visitation part drive helped it's So that of

Jay Snowden

database. X that's ecosystem, moving very of We're can't now. There's opportunities to I old working. online highlighted average the years the earlier ago to and It's just age old, XX throughout online. age the by enough. titanic the go years of that. retail from XX we I tremendous retail point both our cross-sell encouraged active years to I mean stress to -- quickly average of And an

make that value dialed Our continue property incentivized us are totally and create to in in leaders helping on that. doing

categories 'XX. And continued 'XX see in momentum so and into think . those you'll move as we through I

Operator

from with Wells Politzer comes question . next Our Fargo. Dan

Daniel Politzer

just wanted business. I on iGaming touch the First, to

iGaming to And million Is you relates contributor iGaming the to You about where along you're of a additional -- think does margins, you is goals provide mentioned those period, payback share. detail that $XXX type iGaming lines, $XXX positive -- XXXX, detractor? that interactive could million as whether in that there, on X.X% it your losses of any seeing. there targeted customer, to or customer

Jay Snowden

really a continue We're Definitely we to growth. positive contributor. seeing actually If nice business. that ramp

be by seeing that by we've the percentage hold significant surprised and You side, we're in slot overall slot the this probably won't as growth on launched our app Hollywood mix. largely driven stand-alone

we're to. than that So we just those even would we hopefully, in. states expect guided are the live iCasino the to we end be really up performing in year. what throughout contributor And better a positive Again,

here So XXX the basis today. . certainly as sit for we feels attainable points year

seeing to with land-based it we and XXs casinos, is app a now I the than as demo, all to in land-based there's opposed in the still was BET we're early iCasino bit in gender had And see table little ESPN you our would Hollywood more male, regard maybe a in skewed the what mix average definitely definitely young age casinos. XXs when casino not of skews the think of land-based demographics younger within maybe Hollywood what it terms the with and skewed surprisingly. we games, offering skewed the the

their XXs, sports mostly But XXs, early we're in that somebody in pleased male. betting with brings because, more obviously,

very complementary. so And

another one your we and then are Gen targeting men, younger that little maybe that's skewing Xers bit have grab the land-based but targeting business sort older. of lines, got more of side, You've everything a skews female you

Aaron LaBerge

growth per growth with just at that marketing little XX Well, month beginning. the I to Jay, from is would very and in add, the basis coming point database promotion all Michigan, PA in

they clear can targeting message a that able effective period Hollywood that's And leave short being time. that customer in provide very to when audience. the in basically go play retail they of it's a casino them So to very and take been

going continue marketing efficient that's to focused once just we actually obviously, in really We on think can think promotion that. And improve. we and we start an supercharge way. So to

off strong to start we're So a there.

Daniel Politzer

Got the sense. on it. switching That makes of side then sports to just And over things.

Any Do ESPN being kind really is expected. which I helpful. of about would the guard? on kind than talked important? side, of on option baseball You kind have mean you Was Baseball ending their catch though, there of a they're was next I after the earlier or it off this commentary guess the this this? post. Major goal contract Lake other guess, be you color year, for with like view . I seems

Jay Snowden

video baseball mean important, look, out So of but business. getting I They're the baseball out not of getting clearly baseball they're the is business.

on to they'll come and schedules standing and scores and to continue than going So their get then most with we're ESPN scores which from have continue back to their and ESPN, integrated be site people deeply cross the BET.

ESPN that package people always that robust million-plus attracts all has XXX they're to will stats a but package fans video a serving sports change, the So continue with month.

our And with continue, and integration for that continue so us. will important that traffic baseball it's and will

Operator

from Jeff Stifel. question next Stantial Our comes with

Jeffrey Stantial

you and that's returns the think some NGR just been iCasino XX% growth you casino. incremental lead be between allocation spend? about great. this of focus there thoughts rethink that on how there you're are and that at sports does for user product strategic shared as And UA spend, app of on encouraging at stand-alone the development you've early tech overall curious, impressive. would you and the ahead and even to quite Any you and all whether personnel metrics acquisition is Jay, look resources seeing online seeing performance I'm

Jay Snowden

you us it wouldn't mine can from you real we're takes as sports XXXX betting about it those terms doing into do generate what supercharges from in to things in iGaming thinking to space reevaluate the maybe to away front different in continue you're you of what what's say get a of it, does I in does but Aaron continue side. put Yes. a how that -- it necessarily No, we're are perspective, time.

seeing user We're the but user growth seeing in is move continuing -- retention. early, to strong we're week-over-week really right it's that Again, also the direction. those

not it's come time, really strong we're inducing retention. slot spending as going people So our few on with seeing times machines, and a We're again. promos, though to they're then over they're spending away

is product the retention strong, is the know given So great. we

and Third we incremental some then few parties own the in months than in have have our spend maybe that about of numbers, we're validated year a would thought seeing for terms it that, it seeing business include otherwise ago does maybe early good because returns. guidance supporting our we're iGaming

Jeffrey Stantial

color. [indiscernible]

behavior? look metrics Jay Looking the really Can a whoever starting understand deck, Todd, you're going to you of And X that's in I bit this. omnichannel is visitation player like the just traveling guess what for does seeing of what at new, XXXX, or take versus repeat the or terms us. wants your you And guests. all into customer? how these Slide to for compare us in younger kind help EO take brick-and-mortar behavior typical one-and-done mostly to in piece are seeing more of hold cross-sell terms more retention

Todd George

question. playing a is and lot great games. And retail we the see through member model at strange. obvious in you visitation then to seeing into But part volumes. And that increased seeing the are the started first once that's them lower It's table that find seeing we Yes, from thought I come when higher coming we're When be we a think of what what they're out, come really, would cross-sell in, new actually we're used what is in of to denominations, slot would of play where channel. you machines, price on normally entry property. they come in this

and some see frequency. to frequency event-driven specialty into a visitation program. from as solid the into being but events, of your you're levels and seeing them solid around of visitation, starting up we're the grow loyalty it of And then move standpoint, higher loyalty So program, weekends kind they

games, would devices, would necessarily So it's come But see table still in some again, a through been thought of this not see. a great are through to them it journey coming that. lot in It's similar be. thought lot we a it's of do we and of them Again, plot we the journey.

Jay Snowden

And -- we could sorry. ahead, go Jeff,

Jeffrey Stantial

and Excuse encouraging. me, helpful

Jay Snowden

Great. Okay. would could question, be great. if more that have we . Nick, X

Operator

question with Hallum. last Ryan Craig- Sigdahl Our from comes

Ryan Sigdahl

players -- curious app new BET and I'll users they on database Casino, on the profile, Are just of kind that kind how app looks up the it stand-alone Hollywood follow player the from the that online you're they're the or in? existing cross or the are when mainly the new to are seeing the iCasino? but database of playing come prefer playing ESPN in that

Jay Snowden

Yes. offering as seeing We're seeing the the Good We seeing offers have has and earlier we're makes iGaming incrementality a bit casino much that Pennsylvania question, new the in little over our of of Aaron which putting as in actually. to easier. of revenues, properties compelling that of really day products our bet will at marketing really right. just course, our and actually Hollywood. in and We're front Michigan. from referenced casino all you teams as ESPN digital We to every connection, the at referenced well we've more brand that which of users teams to that. look nice tell both opposed very of with of Todd And people frequenters now been our used land-based sort along effective moving terms it

is put haven't we heavy to inducements which had there, And great.

will been terms great. product finding Aaron of of early is very our to, through, healthy looks it's has extra that retention good this we just started behavior sticky that getting So new really we're on continue rational. a and started alluded all And marketing on. It's we that because business flowing ecosystem the outside entire and really seeing reviews customers are in

We us. quarterly you, Okay. you. with of course, at conferences you our Thank in catching forward Thank look between, joining call. up on to for everybody, next investor again

Operator

your This Thank does today's participation. for conclude program. you

You disconnect any at may time.

PENN Entertainment (PENN) 27 Feb 252024 Q4 Earnings call transcript