PENN Entertainment (PENN) 4 May 232023 Q1 Earnings call transcript

Greetings! And welcome to the PENN Entertainment First Quarter 2023 Results Conference Call.

During the presentation all participants will be in the listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions].

I would now like to turn the conference over to Mr. Relations. Investor Jaffoni, Joe ahead. go Please

your Frank. Good PENN get you joining well and management’s morning XXXX first everyone as as Entertainment’s momentarily, We’ll and thank and quarter answers. presentation for comments Thanks, questions conference to call.

everyone Q&A themselves to please the and During to follow-up. question one limit ask we one

Harbor Now, Safe disclosure. we review the

events, of risks the In expects, historical statements or the call uncertainties. or facts including addition Litigation uncertainties, seeks, Private plans, negative can believes, by conference may, risks or expenditures the Securities strategies, statements plans, variations future or be performance, involve as forward-looking other the forward-looking results. future within anticipates, these of of contains XXXX, Reform These statements operating use Act to or by strategies estimates, or and terminology or intends, meaning current similar and and will, of which acquisitions, conditions, identified today’s such projects, capital developments, words, should of discussion of

statements Such are performance. reflect beliefs, of but expectations not guarantees and future forward-looking company's current the

such, expectations. vary results may materially from actual As

associated reports uncertainties and XX-Q. and Securities the publicly to PENN any statements. Exchange are assumes revise the forward-looking forward-looking the filings the news XX-K announcement risks The and described in company's including Commission, obligation no and on with statements Form company's today's with Entertainment Form update or

on found include website. press the required, and GAAP webcast as financial within of in be most measures will calculated financial and non-GAAP of company's financial as comparable release, measures accordance reconciliation presented a When Today's all today's with well measures Regulation directly call G. can the the meaning in non-GAAP SEC to

Snowden. now CEO, to ahead. to the it’s over Jay call turn that, the please pleasure . go company’s my Jay, With

may answer as have Wyomissing, executive you Felicia help George, team who well our Thanks, here can morning, and me of Head Todd I have Hendrix as questions members CFO, Operations, of other our everyone. in during with that Q&A. Joe. Good my

Erika of the family, time Sports. CEO Ayers, member an our joined as first for official of Barstool PENN As by we're also

completed February you more gone on Barstool we in moment. as and know, integration As to-date our our of have planned, a but on efforts acquisition that XX,

another to across retail consistent report most that of portfolio. we're with PENN delivered pleased solid our quarter First, performance

prove more properties anticipated, be given macroeconomic environment. increased the initially uncertain few Our in the markets to a than resilient ongoing supply and

Turning presentation, investor South. of results year-over-year to in PENN Northeast EBITDAR first softer in $X.XX offset Slide our strong in revenues segment with billion the and million, quarter generated to of performance our adjusted X $XXX.X helping

EBITDAR in has and As South, settlement see the on property gaming by margins Slide a approximately you'll of the a tax to to points certain versus our of lesser blended extent, X, higher Northeast, approximately impacted which approximately year-over-year XX% matters. rate our regional is to XX%. due the shift X retail And basis revenues which were XXX negatively the litigation

our the strong beyond really We Number quarter, finished final Looking in X having weeks, two the halves. two story the the of weekend, year month a slot April. first but of of the was with so off slowly in the last weekend including company-wide volume weekend far April Easter started

will our current to color trends, are be guidance Sports, increasing few reflect prior performance guidance on current a we QX the EBITDAR for acquisition in adjusted combined guidance. our maintaining our our minutes. while more revenue Given with providing Barstool year of the Felicia

saw to XX% of in which segment XX-plus guests is to appear our QX responding normal XXX,XXX generated These customer to a and loyalty be quarter X, pre-COVID added our increase strongest year Turning behavior well industry amenities database rates improvements old new more in rated our our of offerings. offerings. returning non-gaming and revenue. to Slide in for our we and age QX growth theoretical continued the online are XX% year-over-year. from Notably, late program, signups we our growth this leading came over

QX the XXXX demographic At and in to year-over-year QX’XX. and very strong after from same has QX’XX XX year compared grown theoretical of age grow total XXXX XXXX. XX.X% throughout XX% growth age time, the to old stable continues to was significantly in XX when segment in rated This to

in Play Our of VIP increase strong visitations. count in both year-over-year and also remains QX frequency with guest

PENN launched and is designed in customer enhanced create umbrella momentum a loyalty Entertainment seamless positive rebranded program, our a help as perfect brands we database under to better omni-channel our comes time The Play, PENN all the at and more of recently which our align experience.

include Some of rewards to for up. just customers by immediately ability the meaningful signing the day-one perks begin new earning

items. can entertainment experiences our brands members popular access interactive, Members Nation now gap] Choice all and can on with of as and and retail loyalty featuring cash everyday addition, redeem points as to well across have points and verticals, marketplace, and business retailers PENN Live tier they gifts PENN also including Hotels. earn gaming [audio In partner where earn in

XXX,XXX quarter. which the PENN properties, before XC’s XX% of in total received representing our industry of EBITDAR. we've our as collectively PENN technology, Play $XXX and PENN supported at which million We've first end our about the is grown XX of is talked total Wallet deposits customers leading and by currently of our deployed to retail

the we've wallet guests who As superior theoretical. time and digital past, device increased the total use in those loyalty visitation, emphasized on demonstrate through

engage deliver channels, you'll XX, efforts, key customer has the across best-in-class combined our future to guests significant ability on with is increase effective us to our experience cross-marketing led as to a our which see growth. Slide a multiple seamless who And with in

revenue Massachusetts. first well our Sports, by as including during of saw recent the Ohio in interactive acquisition part quarter, Barstool as launches, improvement segment driven Our Sportsbook our and

we're in XXX% gross fully-owned sports rates highlighted the revenues higher theScore from iCasino live where which to In and and that betting stack, addition, has in helped record six-month U.S. are generate as Slide and best-in-class than we're impressive continuing with from retention generate on XX, Bet XX Ontario, results our tech March

On betting which than sports to XX% the ninth through consecutive we side engine. the cross-sell part attribute we U.S., for had in March, GGR to large in higher record iCasino iCasino promotional online Ontario, our month in-house our and in

in we Barstool success and us provides blueprint our improved migration to the complete after with Casino a platform Sportsbook July. for for Ontario performance Our this in

markets and with full in bonus our in us products U.S. the connect the Having mechanics. of product add features control a to Sportsbook, more iCasino customers roadmap while enhancing new personalized quickly content will also betting on Barstool and enable our to our new with level

to loyalty and crossplay an with retention, our stronger migration, post improved we offering well omni-channel seamless addition while experience customer In positioned in will ecosystem. be drive

and As integration of enjoyed been Barstool Sports opportunities efforts at thus for numerous our verticals. outset I mentioned the has across very call, smoothly, far going exploring new we've growth our with

On quarter, the and first achieving prior XX% media YouTube than in more more side, and Barstool TikTok growing both year cross-platform the strong followers. subscribers views, from in up than demonstrated and viewership record audience growth the XX%

Barstool up is engagement in Golf’s with with metrics, the to partnership also with user new business the sessions tournaments. XX% strong the both waste theScore’s delivering led tour PGA players mobile revenue a results co-brand up-to-date Meanwhile, and management highly year-over-year. also and During theScore’s another quarter, in total and chat sports offerings. betting is retail perfect its for providing strong and our with acquisition award audience Media and to live winning news, second-screen engaged lines, features for scores, funnel community App, be watching App digital Digital proving merchandise

I'll it that, to with Felicia. now And turn over

Jay. Thanks, solid quarter. We reported another

stronger of of adjusted margin the retail a litigation EBITDAR XX.X%. points adjusted settlement and matters, adjusted mix of of geographic EBITDAR XXX high-tax property with ‘XX our margin. retail certain to EBITDAR of properties The created of segments, Our headwind generated quarter roughly combination $XXX.X a revenues from first million basis the combined

in EBITDAR half loss X of the due loss January March the to launch due in seasonality reflects our sports Massachusetts, of low-holds Barstool launch attributable segment half in results and Ohio, interactive a and February. Roughly Our to and was was million Sports XX in calendar. sports of to betting our $X.X January low-holds

Sports XXX% our and XXX% the of With interactive revenue Sports we in record EBITDAR segment. now acquisition XX, of of February on Barstool Barstool

we As Sports our $XX.X acquisition. from our X ‘XX post revenues slide first include of show deck, quarter Slide on million total Barstool

interest Barstool's not any recorded segment and revenues previously Barstool record adjusted portion Barstool quarter on P&L EBITDAR with reminder, XX% one net only income did our in year. of a interactive loss, adjustments or a As Sports, our we our to in our including

of is I'd cadence business like to about from take a moment Barstool to talk their Sports as gaming. obviously different the revenues, media

year given quarter well Sales quarters The ramp Ad first fourth the as and and Barstool's that the strongest weakest quarters the start as Calendar. of Ad are the due third soft, to Sports is the Sales quarter

would I mind. think as in keep this you Barstool, cadence So about modeling

assumes $X.XX billion $X.XX is the time $X.XX to Now XXXX company the million of expect up year on XXX% standalone revenues from revenues regarding $XXX from revenue Barstool for the the full XX. to to billion, range million approximately guidance, a and we of from of billion $XXX prior February million. On generate basis, new our year $XXX Barstool roughly acquisition $X.XX overall to billion,

$X.XXX $X breakeven Barstool our to first expectations quarter and our Sports EBITDA, Regarding is for EBITDA performance billion XXXX for guidance year. be to the of billion given unchanged

retail into and Chicago given Our ongoing competition, in Lake EBITDA also XX%, economy. the continues outlook Lands, and new tax in the take mix approximately land-based of consideration and continues Kentucky competition a competition imply and Charles Casino gaming to Nebraska, margin to

our quarters segment, each look the quarter second interactive to to should For very third we fourth be the profitable, expect similar and while other.

on segment year-to-date technology, should our from fourth the than the sports migration Given third quarter quarter third quarters. losses and our in and the through be second calendar than interactive quarter losses to quarter, losses more third up the reported first offsetting season new into we in the for the our with build in quarter ramp the first like the greater second cumulative football the our

REIT stock-based numbers. million the development Cash onto interest mostly traditional $X.X inclusive the awards million. million. Landlords cash first projects. taxes $XX.X with were and was was Now, million of payments of which was cash $XX.X associated our quarter our project $XX.X new on four CapEx, $XXX.X settled debt Total million cash $X.X in to million; was Corporate was CapEx expense

our fully million, of on call million shares later like filed find P&L diluted Our issued $X.X additional outstanding $XXX.X which in XXXX out, items will today. weighted a March that are to shares the you of as reflects the common few our I'd There which was XX, of Barstool Sports. for average XX-Q details purchase

acquisition quarter, adjustment again reported Sports Barstool $XX.X the on an reflecting we market value. million, For fair the of to

$XXX.X We also with associated reclassifications which our Master on a sheet reported benefit transactions Lease projects. to restated REIT and new subsequent following the four our reflects lease gain balance PENN million, amended of the a net and growth

statement. income year-over-year our are the the Master of the and due and all year-over-year G&A, in the decline likely You’ll in in impact on majority of the notice interest of decrease lease of restated reclassifications. The the amended to expense majority PENN Lease D&A all the increase

affect changes these of VICI. our cash none to rent Importantly, GLPI payments or

for cash million net settled expense our To $XXX line modeling insurance of further of our proceeds. with expect all stock help XXXX CapEx components based XXXX, ’XX with you prior million, for is guidance of and roughly your of its Total in $XXX corporate inclusive we awards. of

$XXX.X is $XXX cash XXXX for interest assuming average be projected roughly full no common taxes repurchases year for counts fully diluted be year the after further share expense, weighted For of our and $XXX forecast interest million million to ‘XX income. roughly $XX we million Cash XXXX share million. full will for

repurchased of XXX,XXX $X.X share. $XX.XX or we average first $XX.XX at per quarter per in for an We quarter end $XX Subsequence million, price repurchased incremental to share. for million shares $XX million an the

under ’XX remaining have ‘XX authorization and February $XXX million We million $XX authorization. our under remaining our December

year activity quarter net In of the acquisition XX, XXXX quarter end million increase and ended program. billion in of was December billion, balance $XXX share million roughly the payment cash of reflecting the recent our Traditional under with $XXX we to inclusive cash the from lower Barstool for a equivalents. repurchased cash cash debt due in net an $X.X a of and billion liquidity, approximately first at the $X.X $X.X of

include quarter X.Xx of and X.Xx adjusted leverage maturity in our XX% net December leases, XXXX. XX, is debt ended We of to our is you lease nearest on XXXX. with the our if debt fixed compared rate

year X.Xx. adjusted at end We to the net least expect our roughly leverage

with And I'll Jay. to turn that, back it

on on I want download to our is Social attention In call closing, our April Report, Felicia. special Corporate available was Thanks website. published XXXX Responsibility and to XX, which for

our for want really ESG report. grown and members I I'm of we much initiatives to proud well two teams our of ESG how Committee, first our years as support guide property across as Governance all and last over ESG Boards had issued journey. leadership have the and our our continued Diversity thank of since the efforts Committees, to the and country our interactive helps and Nominating our which oversee of their

detailed disaster relief mental recent raise holding and including most issues XX tornadoes campuses. Slide to providing to to around affected for Mississippi of health numerous drive Barstool’s our by college efforts DE&I, and awareness in meaningful open activities on some events help conversation those

continuing turn North experiences over before guests the to service I to thank media all it to every So us operator, give provide wanted a our of interactive America. to and XXX% team just our to fans giant Casino I you and members for retail extend across day, and and best-in-class customers,

up it that for And to it I'll to questions. open over with turn Frank, back you

[Operator you. Thank Instructions].

Securities. Please comes question Truist proceed. from first with Barry Jonas Our

quarter of still trends $XX you for way and Thanks. be Do still the that million guidance Last feel for you midpoint positive to EBITDA about conservative, potential should Interactive the held. upside year. could guys! Hey a noted earlier total

in probably Hey year, guests the months Barry! had Good very no It's better morning. I in six speculation any. our around early It's on so still mine be the to your February. months or depends environment now. good as than what's we when to and it the and change call three we really from how as macro or going would felt say

Casino businesses slot in what of after I pay. the relatively momentum. So the last to our doing said retail weekend the volume of something year, that. during year terms of early think so it’s I just to around would prepared we’re earlier remarks too start a highlight had We – core like strongest it's our weekend consider the hard April and in slow it's Easter, really, we

start through still going soften three it these and or talked through up weeks lot that to they time. we're real strong of two you a trends come and back go then We about internally pockets where and

in really As and trends of would Interactive. feeling early but we're behavior, year yes, volumes and answer the your right on I customer about the good now, the to too and is question say

a question proceed. next comes Greff Please JPMorgan. Our Joe from with

for good Sander morning. Omar It's on Hey, Joe.

increase profitability and past ratchet you're your get that and business to promos than beyond. why in and of the the reason the in XXXX competitors look OSB peers mentioned likely You growth shaped down hockey stick arc your in may or be and PENN marketing those your and more is likely digital iGaming the and reinvest more ramp activities, different profit your more from gaming this will through active and as ‘XX

XXXX talk presently profitability? and this what about please relative look might to you thinking Can in directionally this ‘XX and about how digital ‘XX like you're

going little discussion about would Hey your how versus get that Omar, great a is consistent say question. summary thinking to we're I is a ‘XX. stick with things. It's ‘XX what detailed that into like too in to And early look around

on the based of shared to lot We betting, by encouraged continue say promotional trends online have success momentum just online products would in very not the and in stats our around a retention sports of new Ontario. importantly in month we're set the but we records casino engine, our I every that we Ontario. in

kind have in the here of to last So we're mean, about a bringing we frozen much better feeling we in we us is months frozen and it'll to allow to July. do I going be to recall today good U.S. and until product that to nine really than six really for you technology U.S. the to do stack that that continue had product what’s migrate the

better season most invest to that a I as we've to been Benjie a product. and PENN track great and our terms then XXXX standpoint. looks brand July. doing new that what have we Levy going you're got for and make from had about, just without But how We're ready we there, and for about into and team if product marketing more track know supporting launch it score getting job everything product thinking say that the on football a be think people we're Everything's you year a migration. not would is that than believe have like. right can't good Interactive and going out great Everything's I on of going to that common this sure product a in what

different EBITDAR So and be we that a then growth to a make will really report as start year quarterly will do we and I annual see XXXX start basis. think the important numbers obviously to on a for and you'll really

do versus a Sports the How what's How In then drives short, that. Barstool will profitability different the And be base in the to What top-line profitability in thanks. XXXX? case? Great, profitability going versus you growth? of the about sort think follow-up bullet the case forward? improved

Yeah, sure.

make free throughout in. revenue provided play of to comments basis We feel from things couple here on Erika, cadence I'll Now a likely in of a jump just how the quarter-to-quarter that. out will XXXX. this year morning

from the You breakeven seasonal we're a XXXX. should look roughly in that in assuming seasonality here that perspective and or would assume perspective, XXXX same

We exploring will with verticals continue Barstool new to now. of have number business make we're as top for potential as investments and Sports in of well a us, which talent

a the do Sports the So Barstool and We'll end want year. discussion XXXX more get that I to guidance. don't toward around of right at into the time,

growth, we been continue we've As should to strong year. today, growth because showing here revenue you see sit I revenue every think

made that excited you growth is Erika, to things few the working and years more expect hand it show to a we're well. We'd are in initial XXXX Sports revenues make I'll of and to that to as comments. about, since But regard with over nice XXXX some on Barstool to XXXX three ago have see a reminder, than XXXX. our a we on going investment As doubled and

Sure.

when at look growth. So particular, record in we this I had quarter

were our monetize did year-over-year continues we is about impressions our audience growth and we $XX beating continue future, grow peers of to content. So revenue you video and cross-platform billion vision our six nearly grow, those We're platforms. views, think original those terms on the to our of in When fully. to multiple

being where sure then it. obviously continue we diverse revenue that more set how to our with about maximize get priority and that be do and a So we will efficient we'll

comes Santarelli Our next Please Deutsche Carlo from Bank. question with proceed.

guys about in segments levels understandable. Northeast periods think the the But When back of segments that normalize there, morning, were of regions? course you staffing Thanks. we both and obviously Jay, more the guys saw flow-through saw lapping first see of where you everyone. over namely experienced the to you and Good revenue do you came came quarter the the more etc. employment what growth in on, Hey! amenities start you growth, you're kind Pennsylvania look guys when Felicia, and kind Midwest, flow-through and past those in also clearly have tax it's start this where in at back the on, rate the the to to and with year higher.

Carlo. let one, a that question. It's answer good I'll Todd

think I seeing compared still So was improvement. and and the XXXX kind muted some strategic flowing through But still we there Hey than the in through amenities expense moderate, think now, there. pressure of flowing to and And you we've I think we've of with what to we're And more look then in starting tremendous back, what been were. you're that we're what growth there. we Carlo! more at been then, what showing some we're seeing as added kind of inflationary happening had is it now I creep, are

past, at past value. there our there entitlement start the a offerings playbook, strategic the the add amount really to in programs were were in the our trying our more offerings. and We're didn't we that that in that As looking models, tremendous we're avoid of

normalized think what I starting forward. February-March timeframe, what seeing, So especially we're go will be we to see as

in we coming different starting to it's seasonality regions. can start more There's the this to finally older in like demographics of But traditional trends still XXXX lower some and feeling that area. come to looking from see growth obviously the segments going to compared the be back,

I bit and six Todd's course comments, the the supply Council that market new obviously that most the would to there. some it which opening was this add Horseshoe Blackhawk, Bluffs, thing little months, Carlo, entered just hit one have, over noted last, you've the the between to a with prepared there of the remarks And in Lake earnings we XX call Charles release.

in of We've those been terms case, say with impact pleasantly the We long-term supply. what most base great better Todd markets executives regional I would our and have relationships that new case, on markets that had are job kind and of have estimates that of focusing all we've in worst and would we up a general in be customers held the and surprised. case, of best team very done of managers really value with. those strong highest

that lot you to So of in we terms a where be would QX. continues see and on of that can ahead in I in think a being growth story of good us the revenue come estimated

see for here. so Todd the making reinvestment covered in less to I starting reasons things those bit with the we've strong little a level that But earnings and for at all the this said, player core out agree settle key of and additional you're some VIP quarter markets. and everything Maybe some on

I really about that should on noise the be probably, a basis. say we're maybe this is This would year last of year-over-year April talking time

the good example between softness demand think April and had but see five weather really Omicron Jan, what hangover, year-over-year because year March, feel those this compare had the a I of. to to want in so last and or and XXXX year, a of still April think four comps months look look I to for first then probably you little trends and Feb is like, you odd, you pent-up

case. we year-over-year can to it also. ‘XX get start I think May, want June, You'll you finally looking to certainly versus look Once be going that'll the just and at forward,

But But revenue of mentioned? to from Obviously the was of question that four year-over-year little think guys kind that some differently, a of said the Todd when at you and if thank more about the Jay. mix and a you I'm you see competition about is I that, the that just prelude regions look ask. EBITDA bit year-over-year one that gave competitive Thanks down year-over-year, isolate assets X%. factor. Jay, you follow-up, has to much you the and of how a did tax not that impacts of impact the or stemmed Great.

and you I mean, to way in answer showing the feel were I look it by very as guess our even Carlo, strong portfolio last Yeah. Todd free margins the that asset bottom at asset, that how jump are I we this here. would line of growth some properties top on year. market-by-market margins, and strong line, have despite and

got tired, you've some we're are and you've some like the more some got got Joliet you've that then in of obviously, markets two supply new or in where Illinois, And assets which offsets addressing Aurora.

stress results it's So the even in you top XXXX, of at a when and strongest Missouri, look regions. are all interesting, we like look if South, showing of bottom I of region-by-region to though South the because region year-over-year Ohio markets the but still at line line it's down perspective the and a a year-over-year, compared our is you always from bit certainly mixed bag, and results

portfolio, last anything. to with the with new that and in in that of a trends was some little noise Todd, exception bit. we and there feel down it's jump the So, demand but whatever of about feel the good some free we're supply. pent-up seeing across year, most There's

But add last that I'd amazing down South Carlo, thing only an yes, quarter was The such it Yeah. year-over-year. year. segment, it's

year, So more on it's the just little it's a slightly. comparatively speaking, amazing still new color quarter And competition. an this then down maybe

market, new in tires. is of come and rational the people gate out when a more it seeing had kick think were we're to approach, is, What very we're aggressive responsibly. came into and seeing a get competition trying traditionally they But to I to what very really trying come over come the

and So others we're it's recently some traveling Jay were the the well in viewing hold well really our but market also goal will competitive that seeing. we'll properties, good grow that a And grow the and to of competition. and around, It's all and own on markets environment it's our the out; I to thought to continue and they'll be the pie overall done share. overall led

with from next Kelley Our question Bank comes America. proceed. of Shaun Please

Hi! with for start my Jay, taking the Good demographic. morning, questions. I just everyone. Thanks younger wanted to

deck, the going I you think think the I slow demographic bit did How of kind out in things that lowest a you So cohort there pointed back characterize slide actually to little that? year-on-year. would lot you're telling from What where normalization? up still just of this broadly Is the about change? people on in your bit were are ‘XX. you speaking little that a behavioral ground a we

I Shaun, good another Yeah, question. think

the XX year these I demographics it you like important. is from a look probably looking XXXX XX you of ’XX; hearing ’XX; anything XX% XX% last not made versus year old and aged think this about on still XXXX more up dynamic XX% think you're I to up what it's We're that XX% XX% that segment segment than and seeing the age our changed us plus. up have in When XX point folks to a or QX, XX dynamic. ground then telling really is is to at to and that have things old compared is XX versus is The XX XX versus a year to versus XX decline ’XX. of year at up XX

when really And it feel on filled and good and we're buffets that and had things older to to we a were those because because flat that on answer, some I'm mix to XX you plus down normalize sure offering just anymore. trying that is segments great your of basis, answer why back So and most going is there about been we've we not return. get frequent never on a ‘XX the versus visitors not

to versus single segments know continuing it getting ’XX. starting pattern back don't probably set good is some that and to to to such a breakeven of I ’XX. I versus if can other should getting target grow So pre-pandemic goal, behavior return given strong But sort XX% down think right think we're I from growth at with see we a these more we number, the digit now visitation keep that

But this a in that of X% to a seen that even couple quarter we've demographics, job appeal ton than and of if quarter last out small the particular team Todd think growth and a the years. I of last success adding versus all all year, so in and but younger. we've we done many for been amenities of that every have in down have offset as we've current hiccup segments the other obviously shared new figuring eight more great the of

Yeah other sorry per throw Sean, of you, on a the just trip at XXXX value is growth ads couple at and from but the basis. from much a to percentages even demographic, younger more coming of

So come it's for alone that the And are up even over at a XX segment. XX when plus, seeing them in. XX we that play on trips, maybe then to is XX% they higher level fewer but

calendar of have then and summer back younger and like months about others and the in outdoor of and a Jay and the comes that And I during last things drive events and when spring lot concerts overall kind Felicia experience. that, to were we week; this demographic talking outdoor

as where well as the have with So at we're we comfortable the very for upcoming we're months. programming now,

do a as I was related last of social Maybe team that. And a I maybe talent impact and to than financial into to on my from of expect event you comment color. you the the obviously grow more media the Jay, set cultural start appreciate you for the with this as side with Erika pretty different wondering and content there's fall you for to of or a just big of as the night. bigger sort if Erika, do turning platform cultural question, obviously it you kind the bit, that? kind all And of XX, how Barstool and could any maybe had in follow-up, acquisition Barstool out protect guardrails past. little

the we of can then company in not your the Yeah, or on hit issues onto that that question summer. the with. that on jump commenting I'll and part happened first inside Erika personnel obviously call something publicly; dealt We're second

appropriately, I that and and and pretty and been last know some community it the markets drama years relationship to think the also sometimes. gotten financial well I has with three over going dealt we there's like felt Barstool you've would following We us to public and be plus the say

some be and up exciting as people leadership, the not manage us. tremendous the We've at growth. IP, here we media Barstool, have. of its if It's always brands of pop things there to world; those going one and the very got There's U.S. in and great sports tremendous through have a ahead high certainly that future we'll strongest

jump of cultural any to else address. that you free on anything in Ericka, want or the But questions feel to

Sure.

don't of you of spirit way things, run digital our them, some we give collection a the when space exist entrepreneurial left. hundred in overall, creative tools look or competitors and we're fact people space the at how think media few play about So, our of the media company a due ways inside business the and lot that at about success a is about we're cable media or ways Barstool that freedom we sports, the very the print we we exists Barstool. team here when faltering. we other Most media the give And you have our business, of the to the are space when influencers. them, you think of And there's and or a personalities in in very, look who

talks it's we unapologetic, We of think is our and right. internet how it's company are that's about that's also we company that of interesting, particularly corporate the not authentic; that what culture anything are the incessantly, XX/X, is Sports company and exists content. a that about a part company everything in makes a a Barstool This that's on

content. no Sports well franchises, a as to to no talent a microphone Sports certain have to to sorts cross, to content, PENN to camera the is place lines going make Those it. that don't be what increased Barstool there's you acquisition. creator and regulated we or and and as going promotion into into category that that a the give knew that like opinions, the we're have the of a There's enable engine broadcast Now it that laptop, creative that believe them a will of all Barstool able guardrails there's platform monetization Investment, obviously We exist. knew there underneath is now highly PENN really and we and a prior in thoughts,

top world. built and really how do that, country we the built And captivating to the in continue strongly we how feel we That's that. we creators will the most about in that's podcast brands some of this and influencers

with Please proceed. Beynon Our next comes question Chad Macquarie. from

taking Thanks question. Good my morning! for

year, of curious thinking the iGaming in would kind the where Just is, there what maybe legislative kind the or be support, momentum this big point you're up know lot earlier you states, have good I all Jay, next conversation set for of conversation, Interactive seven how in for a which year sounded in and six it the the learned catalyst industry. of obviously died. was and believe the of terms at a for about like industry Thanks. just

well It no in Yeah be Chad, looks on There a on documented. because absolutely probably of into number handicap, basis. getting depend covered, here not year-to-year a factors, does to XXXX, could I it's would well-known say in obviously that movement probably it's it well worth like really XXXX. but there's hard

once matter cadence of of Casino to and a gambling, way It's the two so look it's Indiana, an to sports to there, get staggered? online get only once move race probably becomes arms Illinois a faster think already Midwest, Is time that have very probably likely eminent. like? think state Iowa, states or betting, or online start usually that this we that you for nothing does about you what I revenue start and that and online it'll to in is is the it tax from question move I so it legalized so the think come. a purposes will it is

to say actually of our crystal migration setting a ball exactly product inferior might technology us, quite what our given timing going have I like this the a not we position online the and into be it's say because what and in ’XX. online product and we well I'm that for as Casino ‘XX and going head to be bring from the on that perspective, standalone try would We're look is with up an to or we year to out summer, that's today to believe ’XX. in to today launch, sports second all the in betting mixed Apps this able of be this and we don't do half going case side.

so ‘XX, us maybe think lot exciting, off and to from in legalization start the And so front of PENN. being roll we and sets to well pushed got for we've really ‘XX up timing that of that's a there, very

being Barstool bigger Thanks then changes a regulated Erika industry. industry, part company, more and bigger Jay. the And more now of you mentioned regulated just with

bigger could with could because how was bring sense. goals, adjustments Thanks. a access that different companies? just Just about on positive, years, company. the you now that How thinking the system growth running make in of mediocre are for couple the terms to there of there you and of what inorganic NorthStar could where in your capital. not kind are be you of pieces recent opportunities maybe Are more the high maybe that do past things to And other with decided that company were valuation part of it's

something major lot sporting are comedy, on putting a look It's you scale, months, our the with six at those personality, it’s spend look own on broadcasts. own a question I our commentators absolutely. When Yeah, own events last live and time at about. you our nine with we great with if thinking – of to

to entirely and to create do of Barstool for that not prior can doing investment acquisition. or PENN and it's something to we a And possible steel that, the do able been PENN prior be I really would provides has money us the to to company for because look guns, made something that. that us. are We at as That's able and anything Sports do most have

So topics whether you hosting into or taking it. extending sports or broadcasting events, in terms new demographics, new hiring of that's new categories, personalities on events, traditional new more name

at So been would afford the was whereas the a that your have that that point look to lot last execute. been years something we has we six that acquisition exactly able and years, seven much possible, to not in able made to nor of to of

Sigdahl from Hallum proceed. Our Ryan Please next with Craig question comes Capital.

I on were want home don't about morning. month, what curious share. on X% commented, are They think you've GGR partial first I your start Good but obviously Massachusetts, start, but the to in Barstool. thoughts state. the Barstool’s stay in

There as and promotional in launches were because state the again Ohio bit a would you have different been, happy little these I than cases. in they at and has states they Massachusetts, Yeah, provides to granularity of say more saw Ryan. it's in many report. then every level what Look interesting, initially been

so or for we're arms made And and promotional have months. we spend four of get initial not launch decision going NGR that that the three have to race the into first negative

So we’ve took a similar approach in Massachusetts.

and and substandard as continue been have our really to not but think you have mind has today I market you part been would that have also see keep aggressive, very strategic our is we on of because expect to out, things just to know this thinking it, that. I we patients share that percentage grow. when have and that about settle product you'll in

do impression so on. you're that money think people you how as want get you through so we some of bad you have may And to think have that. and launching with And spend much lose to to about first to and all a

for to I month almost think launches. after judicious thoughtful in NGR we've first and been approach really in our month three able the generate by state case. positive and We're very every these profitability

the approach. So been that's

dedicated new based how that registering higher aggressive be see think depositing and Downloading some we and and into be product like engine we ecosystem. business. stands-up the well think the capabilities we our promotional engaging on in getting retention towards I believe getting significantly a the results people will with marketing app, competition. more when will dollars, us, to and because we'll the feel have the the new transition, us That you'll about

top promotional I five most good we’re going us the There's for means pull to again to the getting is significantly a clearly players clear of are the iCasino on So I That's focus tier path quickly. think us and question. six of of or is there have expense. on on one the of it’s the amongst actually, most a a quickly, focus profitability – the for that But of. setup marketing which profitability getting which top think back their one that like and OSB the setup to sort those to is

And on we're people inability with us. and to product to with position spend and improved get the a in additional support a platform to much some engage

as we to think a for XXXX. end setup into get the I good us year that's and the of certainly

from only of part Slide also a us. for would Is Todd. looking at a that the the XX% impressive traditional that's the over story to at the you very thing is brand of And in to much driven look our offerings. new that pretty big and core and by of and add. property our new growth XX, product Massachusetts This is is Ryan, lot Sportsbook I new if it's

that diluted was it's X.X company's the or if decision owners share that follow-up. the issued is I within take shares part decision just that the quick to and purchase that for Then Thanks. million stock, or the latter, part of my to of cash. company the Barstool stock guess a the options price clarification part Barstool account. was was

our Ks in of so option also cash this if time. and stock. kind options. over the – PENN on part had the Yeah, put out We call back you and financial, It mix in Ryan the and to our an terms go we've of our put Qs was in of of

had so was stock Barstool mirrored XX% and consideration received PENN cash, from cash, owners owners to Barstool, they the and from we breakdown. consideration ownership was moved in Remember XX% XX% others was who of when that consideration the number all then were a the initial was Erika, Group was majority the XXX%, same and owner those it and equity Portnoy, So the who the structure, Ryan. Founder David Dan Chernin award for and group

Our with next Bernie proceed. question Company. & Needham Please from comes McTernan

driving just to you like at Good the will the the be morning. customers, talk a access segment stack product tech can you versus your in retention you you don't it's Jay capabilities that to if Once just Thanks lot that to ability better now. U.S., about some capabilities? for start, those, U.S. taking Basically the currently. trying Ontario about get have on my retention Maybe it's to coming, whether questions. of have talked what's certain own

is this Bernie, Todd. to I'm Hey share some happy that. of

months, just So months. out focused we're what is what to six we're not three of going you is basically kind only everything seeing but the on said Ontario to and in It's ability help tremendous of the much the now. and It's and will us a do more a easy reinvestment way to messaging tailor that personalize an be where don't to manual levels we process. have

be promotions. have excited more we post But the to nimble migration. gaming reinvestment So it'll us to customer, really a that are a with traditionally you us automation bring do allow capability and see lot to much better to allows process, more would that that

on do personalized Todd's I think party point, what shotgun about at not really to-date able all. to marketing, been we've more really style to platforms third is mean

a So we effective a a it's not of an kind from perspective. promotion CRM approach all. That's promotion, for do

user. to the be so promotions You're the in know on under some and some we about what the able we'll reinvesting in reinvesting based reinvestment and customers, over tailor

promotional engine of level know to there, efforts the that to their in we're we're and are new it they of personalization here marketing a to way competition, you there, our And looking forward bring being soon. and lot U.S. doing able and on Ontario in our a here

Barstool. I'm then revenue up shifting then. And Barstool sure just get verse a since follow it's I know for breakdown pre-pandemic, of got advertising you the been just Erika, we but Great! mixed e-commerce. would possibly a

just I ready Erika, level don't provide that I of detail. we're add. think to Hey, would

Yeah.

Bernie, level. might trying it's think the do the at early we we're the results but within high I too a think that and I keep Interactive road, pretty to down

So I would say more to come.

today. but driver, exact biggest the is mix into to we're advertising imagine would get you the breakdowns As on going revenue not

Fair enough. all. Thank you

Bernie. Thanks

question last Please DeCree CBRE. proceed. with from comes John Our

multi or it it's for or everyone. program plans, to still, brands some new light other in taking integrate there's your Good the question. Barstool across And ideas pollinating, just strategy. thoughts to other media of Hi! of are of broadly with especially round loyalty specifically guess and continue idea theScore, strategy, pretty Maybe or brands. early more the kind some a properties to to one be there for also of brand maybe the Thank cross but morning, retail run any you On the I out. but Hollywood if my kind to the question brand and of

fits Entertainment perspective we're let and Yeah, umbrella sort PENN about how enhanced PENN Play you it. everything from on how of I’ll we're a and thinking features the one underneath thinking brand that jump that and Todd about launch

different to was the people And from mychoice loyalty us have. huge step that of channels allow Play, for Jay. play to brand to a PENN moving Thanks to really try kind John and worked we Play as PENN the create across we

what you to for the it's able when what appropriate, very and listening really add technology about thinking integrate want we've and making consumers them. So sure can to make we as start been that it seamless as where well

of engaging long kind where So us we come before where experience approach gaming options more a or that have create they or technology. with through activity. wagering A in start to host property seamless for all a people can engaging start different we can

of can are awareness one in then online held with option Marriott. tied eventually then Improvements all into hotel wallet to in only our the that's rewards to have really in a I we think our whether across with our have. multiple a play the to brands increased cashless greater transparent companies flexibility portfolio, not or offering statements, taking that being having the and that but out improvements that technology, information, look are currency, and our that of flag, sharing they Cash a properties, And that may you there unified one app, but Hyatt in lot PENN major

have PENN have the it's different So but lot continue because that we're really understand broader brands, we’ll specific value that family. in, people a we'll part in of sure the we'll make have, that they to markets of

hotel The is Great! analogy perfect. you. Thank

Thanks.

quarter. and thank you good this a dialing to morning one! we all again Have you speaking with forward next and for John Thanks in look

We you today. thank you line. Have that great day and disconnect ask participation everyone! your conclude a please for the call That for conference your does