Penn Entertainment has released its financial results for the fourth quarter of 2023. It pertains to the acquisition of revenues amounting to $1.4 billion. This represents a 12% decrease from the results for the same period last year, which was $1.59 billion. In addition, there is a decrease in adjusted EBITDAR and net income at play. As of 2024, both areas have experienced a significant increase.
Penn operates several casinos in the northeast, including Hollywood Casino Toledo, Ameristar East Chicago, and Hollywood Casino at Penn National Race Course. The financial results for the quarter were marginally inferior to those of the fourth quarter of 2022, reflecting a decline of 0.6% in revenue to $662.9 million. Adjusted EBITDAR decreased by 6.1% to $192.5 million in comparison to the prior quarter.
Despite this, the Northeast segment amassed $2.74 billion, representing a 1.6% increase against 2022 levels. The South segment includes, among other establishments, the Margaritaville Resort Casino, Hollywood Casino Gulf Coast, and Boomtown New Orleans. Annually, this region experienced a significant decline in revenue collection of 6.3%. EBITDAR decreased by 4.6%. Additionally, the yearly revenue experienced a decline, amounting to $1.22 billion as opposed to $1.31 billion in 2022.
Penn has four casinos in the West: Cactus Petes and Horseshu, Ameristar Black Hawk, M Resort, and Zia Park Casino. Moreover, in September 2022, the Tropicana Las Vegas Hotel and Casino was completely sold out. Among the five sections, the Western segment reported a 2.3% increase in quarterly revenue relative to the same period in 2022. A total of $133.7 million in revenue was collected, accompanied by an EBITDAR of $50.8 million.
Although this was the case, the annual revenue experienced a decline of 9.2% and reached a total of $528.5 million in 2023.
River City Casino, Ameristar Council Bluffs, and Hollywood Casino Aurora are all located in the Midwest. These properties generated $290.6 million in income, representing a 3% increase. The annual revenue experienced a decline from $1.17 billion in 2017 to $1.16 billion in 2022. The adjusted EBITDAR for the quarter amounted to $120.1 million, reflecting a growth rate of 4.4%.
Penn Entertainment introduced ESPN Bet in August 2023. Despite other success stories about online sportsbooks making the rounds, Penn Interactive’s quarterly revenue collection has decreased compared to the previous year. The results for the fourth quarter of 2022 were $208 million, whereas in 2023 they were $31.5 million, representing an 84.9% decrease.
Penn’s breakup with Barstool and ESPN Bet’s promotional costs may have lowered share revenue. The business sold 100% of Barstool shares to David Portnoy in August, after only acquiring the company in February.
ESPN Bet appears to be gaining traction and has risen to third place in popularity rankings. It generated $12 million in taxable revenue, trailing DraftKings and FanDuel. Penn also took over Wynn Interactive’s New York sports betting certification in February to introduce the Empire State. It spent $25 million for certification. Regarding Barstool, a collaborative partnership has been established with DraftKings.
