PENN Entertainment set for board shakeup with new nominees

WYOMISSING, Pa. - PENN Entertainment, Inc. (NASDAQ:PENN), currently valued at $2.3 billion with annual revenues exceeding $6.6 billion, has endorsed two new candidates for its board of directors, following a supportive report by Institutional Shareholder Services (ISS) ahead of the company’s Annual Meeting on June 17, 2025. According to InvestingPro data, the company maintains a high shareholder yield despite not paying dividends. The two nominees, Johnny Hartnett and Carlos Ruisanchez, have been jointly recommended by PENN and activist investor HG Vora for the upcoming election of directors.

ISS acknowledged PENN’s consideration of HG Vora’s suggestions, noting the board’s openness to new perspectives. PENN has urged its shareholders to vote for Hartnett and Ruisanchez, anticipating that their addition will bring fresh insight to the board, with 75% of directors having been appointed since 2019.

While ISS’s report was generally favorable, PENN has expressed concerns regarding another candidate, William Clifford, former CFO of PENN. The company highlighted his resistance to initiatives that later proved critical for competitive success post his tenure, which ended in 2013. PENN also noted that attempts to resolve differences with HG Vora were unsuccessful, particularly in light of HG Vora’s regulatory compliance issues.

PENN Entertainment, a leading North American entertainment and gaming company, operates a diversified portfolio of casino, sports, and online betting experiences. The company’s strategic partnerships, including with ESPN, and its proprietary digital platforms, are central to its growth strategy. InvestingPro analysis reveals the company operates with a significant debt burden of $11 billion, though analysts expect net income growth this year. For deeper insights into PENN’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of key metrics and growth drivers.

The company has acknowledged the input from shareholders leading up to the Annual Meeting and remains committed to strategic planning aimed at enhancing shareholder value. The forthcoming board changes reflect PENN’s ongoing efforts to adapt to industry shifts and maintain a competitive edge through governance that supports innovation and value creation. InvestingPro analysis indicates the company’s stock has experienced significant volatility, with a beta of 1.57, while trading below its Fair Value. Subscribers can access 8 additional ProTips and over 30 financial metrics for comprehensive investment analysis.

This news is based on a press release statement and includes forward-looking statements subject to risks and uncertainties that could affect the company’s financial results and business operations.

In other recent news, PENN Entertainment reported first-quarter revenues of $1.67 billion, missing the anticipated $1.70 billion consensus. The company’s adjusted EBITDAR also fell short of expectations, reaching $329 million compared to the forecasted $351.5 million. Severe winter weather and the absence of a one-time accounting benefit were cited as reasons for the underperformance. Despite these challenges, PENN observed a recovery in volumes during March, which continued into April and early May. Meanwhile, Egan-Jones Proxy Services has advised shareholders to support three board nominees from activist investor HG Vora, amidst concerns over PENN’s financial performance and governance practices. HG Vora is also seeking a court order to ensure votes for its nominee, William Clifford, are counted at the upcoming annual meeting. In another development, PENN announced the early opening of its Hollywood Casino Joliet on August 11, ahead of schedule, pending regulatory approvals. Benchmark has maintained a Hold rating on PENN shares following the Q1 earnings miss, noting challenges in the ESPN BET platform’s market position.

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