WIOMIS, Pa. — Penn Entertainment reported improved results in the first quarter of 2025 compared to the previous year, but missed the Wall Street estimate. This has become a habit over the past year.
Perhaps that was the case in late April, operators at Wyomis-based casinos, sportsbets and entertainment announced that they would name two new directors to the board to replace the two directors who chose not to support the election and the two retired directors.
The move follows negotiations with HG Vora Capital Management, which could foresee future management reforms at Penn. In a statement regarding the appointment of a new director, Penn said the board believes the costly and distracting proxies fight is not the greatest interest of Penn and its shareholders. New directors, Johnny Hartnett and Carlos Louisanchez, have decades of experience in the gaming and entertainment industry.
Penn declined to comment on the boardroom drama in his quarterly report.
CEO comments
In a statement, Jay Snowden is CEO and president: “Penn's fortune showed strong resilience in the quarter following tough weather challenges earlier this year as the game volume recovered in March and remained consistent through April and early May.”
He reported in its interactive segment that despite industry-wide unfavourable sports betting holds, the company generated record game revenue and significant improvements in both revenue and adjusted EBITDA (revenue before interest, tax, depreciation, and amortization).
Snowden also noted that legal and advisory costs have increased overhead costs for businesses in the quarter by about $8 million.
Snowden also reported that by May 7, 2025, Penn has repurchased $35 million in shares and continues to be committed to the previously stated goal of repurchasing at least $350 million in shares this year.
Core Business Trends
Property Level Highlights
The company reported revenue of $1.4 billion. Adjusted eBitdar (EBITDA Plus Rent) of $457 million. Adjusted EBITDAR margin of 33.1%.
“Weather phenomenon throughout the portfolio in January and February has negatively affected the adjusted EBITDAR by at least $10 million,” Snowden said. “Otherwise, core business trends have been stable, especially in markets that are not affected by the continued growth of new supply.”
Snowden reiterated that its company's customer loyalty program, Penn Play™, contributed to a strong engagement between VIP and the “central” customer segment, coupled with its investment in hospitality and entertainment offerings.
“We also see the benefits of a differentiated omnichannel strategy,” he said.
Record online game revenue
Snowden pointed out the highlights of several interactive segments. Revenue was $290.1 million (including a total of $128.2 million). Adjusted for an EBITDA loss of $89.0 million.
“Our interactive segment has grown significantly up and down compared to the previous year,” he commented. “It highlights the improved trends seen in the business. These results, despite a quarterly increase in adjusted EBITDA, despite customer-friendly sports betting outcomes,” he commented.
According to Snowden, ESPN BET and Thescore BET continue to provide the top of the powerful funnels for Penn's online casino platform.
He also said early results from the company's standalone Icasino apps in Pennsylvania and Michigan have strengthened the momentum of online casinos, and has recently expanded to New Jersey and Ontario. Additionally, since the start of the year, Penn has expanded and new features to several ESPN BET products that utilize links in their accounts, including adding ESPN favorites to the app's homepage and creating new reward programs.
“All year, we work to implement our strategy and achieve our performance goals while delivering differentiated, personalized digital products,” concluded Snowden.
Liquidity and financial condition
Penn reported that total liquidity as of March 31, 2025 was $1.5 billion, including $591.6 million in cash and cash equivalents. Traditional net debt at the end of the quarter was $2.1 billion.
About Pen Entertainment
Penn Entertainment, Inc. is an integrated entertainment, sports content and casino gaming experience provider along with its subsidiaries. Penn operates 43 properties in 20 states, online sports betting in 19 jurisdictions and Ikasino in five jurisdictions, under a portfolio of brands such as Hollywood Casino®, L'Auberge®, ESPN Bet™, Thescore Bet Sportsbook and Casino®. In August 2023, Penn was ESPN and Inc. and ESPN Enterprises, Inc. has concluded an exclusive long-term strategic alliance with the
