**PENN Entertainment Reports Q4 Adjusted EBITDAR Loss and Announces Share Repurchase Program**
PENN Entertainment has reported an adjusted EBITDAR loss of $109.8m (£86.9m) for its interactive arm in Q4, while also announcing a $350m share repurchase program.
The operator of ESPN Bet, theScore Bet, and Hollywood Casino announced that losses had decreased compared to Q4 2023’s $333.8m, coinciding with the launch of ESPN Bet in November of that year.
Revenue for the digital arm soared from $31.5m to $275m year-on-year (YoY), although this increase included a tax gross-up of $132.8m. Without the tax gross-ups, adjusted revenue for the period amounted to $142.2m, against a loss of $75.5m in Q4 2023.
PENN emphasized “significant” improvements YoY for the online arm, despite a “materially negative industry-wide impact on hold” due to customer-friendly sports betting results in Q4.
Promotional spend has also continued to decline as a percentage of online sports betting handle, with 2.3% in Q4 compared to 15.5% in Q4 2023.
For ESPN Bet, the company revealed that average monthly active users had reached 542,000. This metric previously peaked at 771,000 in Q4 2023 alongside ESPN Bet’s launch.
However, the company stated this was the largest number of active users since Q1 2024, as customer engagement increased during the NFL season due to product improvements and media integrations.
Since the November 2023 launch of ESPN Bet, the firm’s total digital database has gained two million more members.
Regarding the product front, the investor deck showed an increase in the percentage of users placing same game parlays (SGPs) since ESPN Bet’s launch.
The business reported that 70% of customers bet an SGP between December 2024 and January 2025, compared to 46% between September and October 2023. Parlay mix as a percentage of total handle now stands at 32% for ESPN Bet, compared to 22% before the brand’s launch.
For theScore Bet in Canada, parlay mix as a percentage grew from 28% to 34% during the same period.
“Our focus on our parlay product offering is resulting in materially higher parlay usage and mix, driving higher structural hold rates for our online sports betting business,” the Wyomissing-based operator stated.
In terms of the online casino, PENN reported record revenue across all three brands in Q4, with a 61% YoY increase.
A standalone Hollywood Casino app was launched in Pennsylvania in December, followed by a debut in Michigan in January 2025. New Jersey is the next state slated to receive the app.
Regarding Pennsylvania’s performance, management reported that in the 10 weeks post-launch, average weekly users rose by 16%. Additionally, average weekly GGR was up 38%, and average weekly NGR increased by 35% compared to the six weeks pre-launch.
There was also a 20% rise in slots as a percentage of handle compared to when Hollywood Casino was only available via the ESPN Bet app.
The company added: “We achieved record iCasino NGR in Q4 2024 and anticipate a meaningful lift from our standalone iCasino product as we move through 2025.”
On the share repurchase, the company stated it plans to buy back $350m worth of stock this year.
Jay Snowden, PENN Entertainment CEO, commented: “In the interactive segment, our parlay mix has improved sequentially each month since October, achieving greater than 30% parlay mix as a percentage of handle in December and January.
“Greater same game parlay adoption has contributed to the parlay mix improvement, with SGP mix as a percentage of handle increasing each month since the football season began.
“In addition, our online casino business delivered record quarterly gaming revenue, with over 60% growth year over year and continued momentum into 2025.
“We remain focused on delivering further enhancements to our digital offerings this year, including live streaming in the ESPN Bet app, new NCAA Tournament Challenge integrations with ESPN, and additional launches of our standalone iCasino app offerings,” he added.
The ESPN Bet operator stated that product improvements and media integrations are supporting growth, but the firm posted further losses for the final three months of 2024.