WYOMISSING, PA — PENN Entertainment, Inc. (Nasdaq: PENN) has released its financial results for the first quarter of 2025, showcasing resilience despite weather-related disruptions earlier in the year. The gaming and entertainment company reported revenues of $1.4 billion, with Adjusted EBITDAR of $457 million and an Adjusted EBITDAR margin of 33.1%.
Severe weather in January and February impacted operations, reducing Adjusted EBITDAR by at least $10 million. However, Jay Snowden, Chief Executive Officer and President, emphasized the company’s ability to rebound quickly, stating, “PENN’s properties demonstrated strong resilience in the quarter following severe weather challenges earlier in the year, as gaming volumes rebounded in March and remained consistent through April and early May.”
Key Performance Highlights
- Interactive Segment: PENN delivered record gaming revenue in its Interactive segment, achieving year-over-year growth in both revenue and Adjusted EBITDA, even in the face of an industry-wide unfavorable sports betting hold.
- Loyalty and Engagement: The company credited its PENN Play™ customer loyalty program and enhancements to its hospitality and entertainment offerings for strengthening engagement among VIP and mid-worth customer segments.
- Omni-Channel Success: PENN highlighted the benefits of its omni-channel approach, noting that pre-existing customers in Pennsylvania and Michigan who use their standalone Hollywood iCasino app significantly increased spending across both retail and online platforms.
Strategic Initiatives
PENN remains committed to returning value to shareholders with an ambitious share repurchase program. Through May 7, 2025, the company has repurchased $35 million of shares and aims to repurchase a total of at least $350 million this year.
Corporate overhead costs were up by $8 million due to legal and advisory expenses during the quarter. Despite this, PENN’s diversified strategy and operational adjustments point to continued growth across its portfolio.
“We are also seeing the benefits of our differentiated omni-channel strategy,” added Snowden, underlining the strength of PENN’s comprehensive approach to integrating online and brick-and-mortar experiences.
PENN Entertainment’s Q1 results and focused strategic initiatives underscore its ability to adapt and thrive in varying market conditions, positioning the company for sustained performance through 2025.
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