ESPN Bet doesn’t come cheap – Penn Q4 revenue down; net loss at $359m
ESPN Bet brand performed well during the quarter, but its initial costs are proving significant for Penn.
Penn Entertainment has posted its financial and business results for the fourth quarter of 2023. Revenue for the quarter reached nearly $1.4bn.
The company reported a net loss of nearly $359m during Q4. Penn’s adjusted EBITDA also fell in the fourth quarter.
The company posted a loss in adjusted EBITDA of $39.6m.
However, company President and CEO Jay Snowden noted that Penn’s latest quarterly results reflected “solid performance.”
He commented, “Penn delivered another quarter of solid property level performance while continuing to invest in our high-growth digital business, which we believe will create significant long-term shareholder value. Our retail results reflect strong customer demand and well-executed strategies across our portfolio.”
Snowden went on to discuss its newest brand launch, ESPN Bet, and its specific achievements during the fourth quarter.
He concluded by saying, “In our Interactive segment, ESPN Bet attracted significantly more first-time depositors (FTDs) than we anticipated, which drove higher than expected promotional expense. Our successful launch led to substantial expansion in key performance indicators (KPIs) including monthly active users (MAUs), handle, and cash handle. Importantly, strong early retention and consistent user acquisition have led to steady month-over-month increases in cash handle as our promotional expense has started to normalize entering 2024.
“ESPN Bet has also attracted the mass market sports fan, highlighting the potential to expand the appeal of sports betting and grow the overall market. This foundation sets the stage for continued growth and market share gains as we introduce further product enhancements and deeper integrations into the ESPN media ecosystem.”
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