PENN Entertainment Inc Forecasts Narrower Losses
PENN Entertainment Inc (NASDAQ:PENN) announced on Monday that it anticipates a narrower loss from its online gaming segment for the third quarter, attributing this to improved sector conditions and reduced expenses.
Adjusted Earnings Forecast
The company predicted that the adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for its Interactive division will range between a loss of $90 million and $100 million, an improvement from previous projections which anticipated a loss of $115 million to $135 million.
Interactive Unit Overview
The Interactive unit oversees ESPN Bet, one of the largest sports betting platforms in the United States.
Key Drivers for the Improvement
Penn pointed to a “higher parlay mix” in its offerings and reduced promotional costs as factors contributing to the smaller loss.
Market Reaction
Following the announcement, shares of the gambling company surged as much as 13% in aftermarket trading before settling to trade slightly higher.
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