Penn Entertainment misses Q4 expectations, plans $350 million share buyback

Published 27/02/2025, 13:36
Penn Entertainment misses Q4 expectations, plans $350 million share buyback

WYOMISSING, Pa. -On Thursday, Penn Entertainment (NASDAQ:PENN) reported fourth quarter results that fell short of analyst estimates, but announced plans for a significant share repurchase program in 2025.

The casino and sports betting operator’s stock slipped -1.76% following the release.

Penn posted a fourth quarter adjusted loss of $0.44 per share, wider than the $0.29 loss analysts expected. Revenue came in at $1.4 billion, below the $1.69 billion consensus estimate.

Despite the earnings miss, CEO Jay Snowden highlighted "solid performance" from properties not impacted by new competition, which saw nearly 3% year-over-year revenue growth. The company’s Interactive segment, which includes online sports betting and casino games, delivered "significant year-over-year improvements in revenue and Adjusted EBITDA" despite unfavorable sports betting outcomes.

Penn announced plans to repurchase at least $350 million of its shares in 2025, signaling confidence in its long-term outlook.

"We are excited by the opportunities that lie in front of us in 2025 and into 2026 in all aspects of our business," Snowden said.

The company reported property-level adjusted EBITDAR of $461.2 million with margins of 33.1%. Its Interactive segment saw revenues of $275 million but posted an adjusted EBITDA loss of $109.8 million as it continues investing in growth.

Penn ended the quarter with $706.6 million in cash and total traditional debt of $2.6 billion. The company’s lease-adjusted net leverage ratio stood at 7.3x as of December 31, 2024.

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