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- **Digital Restructuring Success**: PENN terminated ESPN deal, saving $150M/year, and rebranded to theScore Bet with seamless customer experience. Q3 iCasino revenue grew 40% YoY, MAUs up 79%. 
- **Profitability Path**: 2026 Interactive segment expected to break even, driven by $150M annual savings and targeted marketing in Canada/U.S. iCasino. 
- **Shareholder Returns**: $354M shares repurchased in 2025, with $750M new buyback authorization for 2026-2028. 
- **Risk Management**: PENN prioritizes regulated, omnichannel strategy to counter prediction market disruption. 
- **Growth Catalysts**: Joliet casino database +42%, Alberta iCasino launch 2026, and 79% iCasino MAU growth. 


**【CEO Summary Section】**
- PENN terminated its ESPN sports betting partnership, transitioning to theScore Bet in North America. This shift aims to optimize digital operations, reduce costs, and focus on high-margin markets like Canada and U.S. iCasino. 
- TheScore Bet rebrand will occur seamlessly on December 1, with no app downloads or re-registration required. PENN expects enhanced unit economics and profitability in 2026. 
- North America iCasino revenue grew 40% YoY, driven by 62% cross-sell from OSB. Hollywood iCasino MAUs increased 79% QoQ, with October setting new monthly records for GGR and NGR. 
- Joliet casino database grew 42% since opening, with 50% of new customers previously inactive. PENN's regional casino segment generated $1.4B revenue and 32.8% EBITDAR, despite competitive pressures. 
- PENN repurchased $354M shares in 2025, bringing total buybacks since 2022 to $1.1B. A new $750M share repurchase authorization was approved for 2026-2028. 

**【CFO Financial Commentary】**
- Q3 2025 Interactive segment revenue: $297.7M (including $139.5M tax gross-up), with adjusted EBITDA loss of $76.6M due to customer-friendly hold and one-time transition costs. 
- PENN paid ESPN $38.1M in Q4 for marketing services through December 1, with no further obligations post-2025. 
- Warrant expense: $14M in Q4, with 8M vested warrants remaining (potential 0.2% dilution). 
- Total liquidity: $1.1B, with $660M in cash. Q3 CapEx: $172.7M (primarily project-related). 
- 2025 CapEx revised to $685M (down from $730M), with project costs shifted to 2026. 

**【Q&A Highlights】**
- **Digital Profitability**: Jay Snowden expects 2026 Interactive segment to be breakeven or better, with $150M annual savings from ending ESPN deal. Marketing spend will focus on high-ROI markets like Canada and U.S. iCasino. 
- **Customer Retention**: Aaron LaBerge notes theScore Bet app will remain unchanged post-rebrand, with retention campaigns targeting 2.9M ESPN BET users. Q3 retention metrics improved 20% YoY. 
- **Prediction Markets Risk**: Jay Snowden warns prediction markets could disrupt sports betting, but PENN will leverage its regulated, omnichannel model to compete. 
- **Capital Allocation**: Felicia Hendrix targets long-term leverage below 5x, balancing share buybacks, deleveraging, and growth projects. 
- **Canada Expansion**: PENN plans to increase marketing in Alberta (launching 2026) and Ontario, where iCasino revenue grew 40% YoY. 
- **Competition Response**: Todd George reports stable performance in non-supply-impacted markets, with labor costs rising 3-5% in competitive regions. 
- **Joliet Performance**: Joliet casino database grew 42% since opening, with 50% of new customers previously inactive. PENN expects incremental revenue from Joliet vs. Aurora. 
- **Share Buybacks**: PENN repurchased $354M shares in 2025, with $395M remaining under current authorization. A new $750M program begins in 2026. 


PENN Entertainment, Inc.(PENN)-20251106-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

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Diluted EPS from Discontinued Operations

PENN

PENN fundamentals

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