PENN Entertainment narrows expected loss from online gambling business
Contributor since / Followers
Hispanolistic/E+ via Getty Images
Shares of PENN Entertainment (NASDAQ:PENN) shot higher late Monday after the parent company of ESPN Bet narrowed its anticipated loss from its interactive gambling business and updated its profit guidance for its casinos, hotels and racetracks.
Shares raced up 13% before retreating to a 1.5% gain in after-hours.
Attributed to better-than-expected hold driven by a higher parlay mix and lower promotional expenses, the company now expects to report a loss between $90M and $100M in interactive adjusted EBITDA from its initial guidance for a loss between $115M to $135M. This compares to the Bloomberg consensus estimate for a loss of $125.2M.
Due to unfavorable hold rates within its Northeast segment and fewer guests to its South segment from severe weather and hotel remodeling, PENN Entertainment (PENN) expects a $10M impact to retail operations adjusted EBITDAR, forecasted to be between $465M to $475M. In Q2, PENN (PENN) reported retail adjusted EBITDAR of $496.6M.
The updated results coincide with an investor event on Monday at the M Resort in Las Vegas which will provide shareholders with an update on the company’s business strategies, operations, and other key developments.
PENN Entertainment (PENN) reports final Q3 results before the market open on November 7.