PENN Entertainment Inc (NASDAQ:PENN) reported second-quarter FY23 sales growth of 2.9% year-on-year to $1.67 billion, in-line with the analyst consensus.
Gaming revenue declined 2.5%, while Food, beverage, hotel, and other revenue increased 26.7% Y/Y.
Revenue from Northeast, and Interactive segments rose from last year, while South, Midwest, and West segments decreased Y/Y.
EPS of $0.48 beat the analyst consensus of $0.42.
Total operating expenses increased 10.9% Y/Y to $1.5 billion. The operating margin was 12.3%, and operating income for the quarter decreased 32% to $205.5 million.
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Adjusted EBITDA fell 30.7% to $330.4 million. Adjusted EBITDAR dropped 5.5% to $476.8 million, with an Adjusted EBITDAR margin of 28.5%, contracting 250 basis points Y/Y.
The company held $1.27 billion in cash and equivalents as of June 30, 2023.
In Q2, PENN repurchased $99.8 million of shares at an average price of $26.31.
Price Action: PENN shares are trading higher by 19.27% at $29.62 in premarket on the last check Wednesday.
