Penn Entertainment has reiterated its positive outlook on the current state of affairs, despite recording a 3.8% drop in revenue.
Penn Entertainment Positive About Future Despite Revenue Drop
In the opening three months of 2024 (up until March 31st), Penn Entertainment’s revenue in each ‘core business’, including the Interactive segment which was a key area of part of the company’s growth.
Gambling revenue dropped in the Northeast, South, West and Midwest areas of the United States and the reasoning for this decrease is believed to be related to the sever weather conditions during January/February.
Penn Interactive also saw a decrease in revenue when looking at the year-on-year sector and this part of PE boasts the ESPN Bet brand.
Jay Snowden, CEO at Penn Entertainment, has remained positive despite this decrease in revenue and believes the company is still in a strong position to reach its 2024 goals.
He said (via Penn Entertainment): “We look forward to unveiling additional product enhancements and unique media integrations with ESPN ahead of the 2024 football season.
“Our improved online product offering will help engage, reactivate and retain our expanding database, while also advancing our strategy to create a highly differentiated experience for sports fans and sports bettors.”
During Q1, Penn Entertainment saw a 5.1% decrease in gaming revenue, finishing on $1.26 billion and revenue from hotel, food and beverages maintained its place at $348.6m.
The Northeast sector generated $648.7m duing Q1, ranking as the leading source of income, but dropped by 2.3% when comparing it to last year.
Snowden believes the time of year and weather played a huge part in the overall decrease in revenue, as he expects properties to improve over the course of the year.
He said (via Penn Entertainment): “Across the portfolio, we continue to capitalize on cross-sell opportunities from our retail sportsbooks, which has helped sustain our momentum in our Ohio properties and re-energize properties such as Plainridge Park in Massachusetts and Hollywood Casino at Kansas Speedway.
“With winter now behind us, we are seeing great progress with our four growth projects, all of which remain on budget and on schedule.”