PENN Entertainment, Inc. Q4 FY2024 earnings call

• Retail: Has a healthy core business growing market share, with 4 retail growth projects under construction. One project in Joliet, IL to open in Q4 2024, others in H1 2026. Anticipates no significant new competitive supply in 2025-2026. • Digital: Score and Score BET doing well in Canada, Ontario is top market. Launched standalone Hollywood iCasino products in PA and MI, soon in NJ. ESPN BET online sports betting has green shoots, working to optimize spend and partnerships. Omni-channel strategy delivering, with digital database growth (4M new members, average age of active database down 10 years). • Super Bowl 2025 highlights: Local presence in New Orleans/Baton Rouge drove new signups, visitation, and parlay mix up.

For the fourth quarter of 2024, retail revenue was $1.4 billion with adjusted EBITDA of $461 million. The interactive segment had adjusted revenues (excluding Skintax gross up) of $142 million, and interactive adjusted EBITDA was a loss of $109.8 million. Customer-friendly sports betting results negatively impacted interactive adjusted revenues by $44 million and EBITDA by $32 million. The retail segment had a strong finish with steady demand increases in Q4. The interactive segment's performance was affected by sports betting results.

• Retail: 2025 revenue guidance $5.6B - $5.75B, EBITDA $1.85B - $1.95B. • Interactive: 2025 revenue guidance $1.25B - $1.75B, EBITDA loss $200M - $100M (midpoint $350M Y/Y improvement). 2025 Q1 interactive revenue $270M - $350M, EBITDA loss $85M - $70M. ESPN BET handle market share 4.7%, USI Casino GDR market share 3.5%. Expect each quarter of 2025 to have lower losses sequentially, Q4 2025 to be first profitable quarter for ESPN BET.

• Competitive supply: New supply in some markets like Council Bluffs, Chicagoland, LA could impact. • Gaming tax increases: States facing budget deficits may consider tax hikes, need to engage for alternative solutions. • Weather impact: Quarter-to-date weather events can affect results.

Q: Carlo Santarelli asked about Illinois projects financing and OSB business time frame.

A: Felicia Hendrix said financing likely close to opening. Jay Snowden talked about OSB market share improvements and levers if needed.

Q: Barry Jonas asked about land-based renovation ramps and gaming tax risks.

A: Jay Snowden and Todd George discussed ramp timelines and engagement with states on tax issues.

Q: Shaun Kelley asked about market share assumptions for ESPN and Hollywood iGaming.

A: Jay Snowden and Aaron LaBerge talked about iGaming market share growth and ESPN optimization.

Q: Brandt Montour asked about brick and mortar supply pressure and Canada/Alberta launch.

A: Jay Snowden and Todd George discussed supply pressure cadence and Alberta launch expectations.

Q: Joe Stauff asked about digital milestones and retail competitive headwinds.

A: Aaron LaBerge and Todd George talked about digital integrations and retail headwinds.

Q: Chad Beynon asked about repurchases and retail business trends.

A: Jay Snowden and Todd George discussed repurchase approach and retail post-election trends.

Q: Jordan Bender asked about interactive guidance range and ESPN-branded sportsbooks impact.

A: Felicia Hendrix and Todd George talked about guidance sensitivity and cross-play.

Q: Dan Politzer asked about iGaming business details and ESPN MLB contract.

A: Jay Snowden and Aaron LaBerge discussed iGaming contribution and ESPN MLB impact.

Q: Jeff Stantial asked about iGaming player behavior and sports cross-sell.

A: Todd George and Jay Snowden talked about player behavior and cross-sell.

Q: Ryan Sigdahl asked about Hollywood Casino app player profile.

A: Jay Snowden talked about player profile composition and marketing effectiveness.