Penn (PENN) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 8:48 AM CDT 44 min read

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Thursday, April 23, 2026 astatine 8 a.m. ET

• Chief Executive Officer — Jay Snowden

• Chief Financial Officer — Felicia Kantor Hendrix

• President, Interactive — Aaron LaBerge

Jay Snowden: Thanks, Joe. Good morning. I americium pleased to study PENN's diversified retail portfolio delivered different coagulated quarter, arsenic Retail conception adjusted EBITDAR grew twelvemonth implicit year. Our spot show was encouraging crossed the portfolio with peculiar spot successful the West segment, reflecting the ongoing ramp of M Resort's caller edifice operation and awesome results from the squad astatine Ameristar Blackhawk. In the Midwest segment, we delivered beardown gross and EBITDAR maturation led by our properties successful the St. Louis marketplace arsenic good arsenic continued momentum astatine the caller Hollywood Joliet successful Illinois.

Results frankincense acold from our archetypal 2 improvement projects supply america continued assurance successful the anticipated occurrence from the upcoming openings of the Hollywood Columbus edifice operation connected June 12 and the caller Hollywood Casino Aurora connected June 24, successful summation to our caller Council Bluffs relocation scheduled to unfastened successful 2028, each of which are taxable to last regulatory approvals. As we person said previously, we expect our 4 improvement projects volition make 15% positive cash-on-cash returns connected our aggregate task outgo of $800 million, which is nett of the 50% publication from the City of Aurora.

Overall, increases successful some visitation and walk per sojourn companywide supported year-over-year theoretical gross maturation crossed each of our rated worthy segments, representing the largest quarterly summation successful 3 years for the Retail segment. Looking ahead, we proceed to spot coagulated trends into April contempt higher state prices and ongoing geopolitical uncertainty. Importantly, we are besides opening to spot improving trends successful those regions wherever we are anniversarying caller supply, peculiarly successful Bossier City, Louisiana, and Council Bluffs, Iowa.

Turning to the Interactive segment, we saw important adjusted EBITDA betterment of astir $78 cardinal twelvemonth implicit twelvemonth successful Q1 driven by astir 15% year-over-year maturation successful iCasino gross and astir 5% year-over-year maturation successful online sports betting revenue, and a important simplification successful selling walk coupled with continued outgo management. This marks the archetypal afloat 4th nether our realigned integer strategy, which is focused chiefly connected our U.S. iCasino states and Canada, portion operating nether a much businesslike outgo operation overall. We are continuing to spot affirmative trends successful Ontario, including year-over-year maturation successful mean monthly progressive users, online sports betting revenue, and iCasino revenue.