Second Quarter Revenue of Penn Entertainment deemed "robust" by CEO's assessment
Penn Entertainment Reports Strong Q2 2025 Results
Penn Entertainment, a leading name in the gaming industry, has announced its Q2 2025 commercial casino earnings, showing a significant growth compared to Q2 2024. The total revenue is expected to be around $1.765 billion to $1.8 billion, representing a roughly 6% year-over-year increase.
The retail (commercial casino) division played a significant role in this growth, generating approximately $1.4 billion in revenue. This strong performance contributed to an adjusted EBITDAR of $489.6 million, with healthy margins of 33.8%. This suggests an improved operational performance in the casino segment compared to the previous year.
On the other hand, the interactive (online gaming and sports betting) segment saw a 35.9% year-over-year increase in revenue but remained unprofitable with an adjusted EBITDA loss of $62 million. Despite the loss, the segment's sharp reduction in losses marks progress towards profitability.
Overall, Penn Entertainment narrowed its net loss from $27.1 million in Q2 2024 to $18.3 million in Q2 2025, and the diluted loss per share improved from $0.18 to $0.12. Adjusted EBITDAR for the company rose substantially, with reported figures at $240 million and $392.1 million, depending on the source.
Here's a summary of key points:
| Metric | Q2 2024 | Q2 2025 | Change/Note | |---------------------------------|--------------------------|------------------------------|------------------------------------------| | Total Revenue | ~$1.7 billion | ~$1.765 - $1.8 billion | +6.1% growth overall | | Retail Casino Revenue | N/A (included in total) | ~$1.4 billion | Strong contribution, robust EBITDAR | | Retail Casino Adjusted EBITDAR | N/A | $489.6 million (33.8% margin) | Indicates solid profitability | | Interactive Segment Revenue | N/A | $316.1 million | +35.9% YoY increase but still EBITDA loss | | Interactive Segment Adjusted EBITDA | N/A | -$62 million | Loss narrowing but segment not profitable | | Net Loss | $27.1 million | $18.3 million | Loss narrowed, better earnings per share | | Diluted Loss per Share | -$0.18 | -$0.12 | Improved earnings per share | | Adjusted EBITDAR (company-wide)| N/A | $240 million or $392.1 million | Both figures show substantial EBITDA growth |
Jay Snowden, CEO of Penn Entertainment, described the revenue figures as "solid." However, Jefferies analyst David Katz wrote that the slightly better than expected land-based business and the wider than expected loss in digital are neutral for the shares.
Properties not affected by new supply grew revenue by nearly 4% year-over-year. Notably, Penn Entertainment repurchased 5,835,467 shares of its common stock in open market transactions for $90.3 million in the second quarter, at an average price of $15.47 per share.
In conclusion, Penn Entertainment's Q2 2025 commercial casino earnings improved significantly over Q2 2024, driving much of the overall revenue growth, while the interactive segment, despite strong growth, remains a loss center but with improving trends. The company also maintained robust liquidity and engaged in significant stock buybacks in Q2 2025.
Penn Entertainment's casino-and-gambling segment, particularly the retail casino division, exhibited remarkable growth in Q2 2025, boosting the company's overall earnings and contributing to a strong casino culture. Despite the growth, the online gaming and sports betting segment, a part of the interactive business, remains unprofitable in casino-games, although it showed progress towards profitability.
