PENN Entertainment’s revenue increased by nearly 4% year-over-year during the first quarter of 2025 and turned in the most profitable online gaming period since launching ESPN BET in late 2023.
Key Takeaways
- Online revenue reaches its highest mark despite player-friendly hold from March Madness
- The company has repurchased $35 million in shares as part of a $350 million plan
- Monthly users rose quarter-by-quarter for the first time since late 2023
PENN reported on Thursday that interactive segment revenue surged 40% in North America to $290.1 million in Q1, the highest since partnering with an iconic media brand. These profits included a $128.2 million tax gross-up and industry-wide customer-friendly results during a favorite-filled March Madness.
The Adjusted EBITDA loss fell from $196 million in Q1 2024 to $89 million in the latest quarter. Company brands ESPN BET, theScore Bet, and Hollywood iCasino helped adjusted revenue increase from $151 million to $162 million. PENN projected that the Q1 2025 figure was impacted by $15 million because of the “unfavorable sports hold” created by college basketball.
“Our Interactive segment generated significant top and bottom-line year-over-year growth, highlighting the improved flow through we are seeing in the business,” PENN CEO and president Jay Snowden said.
“These results are despite customer-friendly sports betting outcomes that negatively impacted Adjusted EBITDA by approximately $10 million in the quarter. Importantly, ESPN BET and theScore BET continue to provide a strong top of funnel for our online casino platforms, which achieved record gaming revenue in the quarter and are contributing meaningfully to our results.”
iGaming on the rise
Monthly users increased for the first time since the end of 2023, rising from 542,000 in Q4 2024 to 560,000 in Q1 2025. Online casino users increased 20% year-over-year as iGaming crossover from ESPN BET and theScore Bet has helped generate new business.
“Our online casino momentum is bolstered by the compelling early results of our standalone iCasino app in Pennsylvania and Michigan, which recently expanded into New Jersey and Ontario. We are also seeing the benefits of our differentiated omni-channel strategy, as those pre-existing customers in Pennsylvania and Michigan who have engaged with our standalone Hollywood iCasino app have increased their spend meaningfully across both retail and online channels,” Snowden said.
Overall business
The retail and online gaming company reported that the core business and interactive segments combined to produce $1.67 billion to kick off the year. Net income reached $111.5 million in Q1.
PENN Entertainment’s Adjusted EBITDA increased 71% from the same quarter in 2024 to $173.3 million in Q1 2025. Adjusted EBITDAR of $329.2 million was up from $256.2 million, but that figure was “negatively impacted by at least $10 million” during January and February weather events that slowed business, Snowden said.
“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,” Snowden said.
“Core business trends were otherwise stable, particularly in markets not impacted by the continued growth of new supply.”
PENN also announced that the company has repurchased $35 million of shares year-to-date as part of a previously stated goal of at least $350 million in share repurchases this year.
