Penn Entertainment Q4 Earnings Highlights: Revenue Miss, EPS Miss, ESPN Bet's Impact
Portfolio Pulse from Chris Katje
PENN Entertainment reported Q4 earnings with revenue of $1.4 billion, missing estimates of $1.53 billion, and a loss of $1.75 per share, against an expected loss of 52 cents. The company cited investments in ESPN Bet and its digital business as reasons for the net loss of $358.8 million. ESPN Bet, launched in 17 states, contributed $31.5 million in revenue and saw a 190% increase in handle year-over-year for December and January. PENN plans to expand ESPN Bet to cover 46% of the U.S. population by 2024.
February 15, 2024 | 3:31 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
PENN Entertainment reported lower than expected Q4 earnings, with a significant loss due to investments in ESPN Bet and digital business. ESPN Bet's launch shows promising growth.
The reported earnings miss and significant loss are likely to negatively impact investor sentiment in the short term. However, the promising growth of ESPN Bet could mitigate some negative perceptions.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The Walt Disney Company benefits from an annual licensing fee paid by PENN Entertainment for the ESPN brand used in ESPN Bet, contributing to Disney's revenue.
While the direct financial impact on Disney from the licensing fees is positive, the overall significance to Disney's vast revenue streams may be relatively modest.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60