Penn Entertainment Stock Falls to Lowest Level Since the Beginning of the Pandemic
Penn Entertainment, the owner of Hollywood Gaming at the Mahoning Valley Race Course in Austintown, is experiencing a significant decline in its stock price. The stock has fallen nearly 18 percent in the last 24 hours, marking its lowest level since the early days of the pandemic.
Decrease in Stock Value and Revenue
Penn Entertainment's stock has seen a decline from its all-time high of 130.47 on March 12, 2021, to a mere 32.33, the highest stock value in the previous year. This significant drop in the stock price is concerning for the company.
In addition to the decrease in stock value, Penn Entertainment's revenue has also taken a hit. Comparing the last quarter of 2022 to the Q4 in 2023, revenue dropped from $1.59 billion to $1.40 billion, a decrease of nearly 12 percent. This decrease in revenue is alarming for the company and its investors.
Late Launch of ESPN Bet Contributes to Revenue Loss
The majority of the revenue loss can be attributed to the delayed launch of ESPN Bet. Penn Entertainment missed out on the opportunity to join New York's largest sports betting market, resulting in a significant loss in revenue. This missed opportunity has had a significant impact on the company's financial performance.
Penn Entertainment's Acquisition Deal to Boost Revenue
In an attempt to offset the revenue loss from the late launch of ESPN Bet, Penn Entertainment has announced a deal to acquire Wynn Interactive Holdings. This acquisition comes at a cost of $25 million and will grant Penn Entertainment access to the mobile sports wagering licenses for New York.
"This is an important development that will bring ESPN BET to the largest regulated online sports wagering market in North America," said Jay Snowden, PENN Entertainment CEO and President. This acquisition is seen as a positive step forward for Penn Entertainment, as it aims to tap into the lucrative New York sports betting market.
Penn Entertainment's Presence Across Multiple States
Penn Entertainment currently operates 43 properties in 20 states and offers online sports betting in 15 jurisdictions. Despite the recent challenges faced by the company, Penn Entertainment remains a significant player in the gambling and entertainment industry.
As Penn Entertainment navigates through this challenging period, it will be interesting to see how the acquisition of Wynn Interactive Holdings and the launch of ESPN Bet in New York will impact the company's financial performance and stock value. Investors and industry experts will be closely monitoring these developments in the coming months.
Analyst comment
Negative news: Penn Entertainment’s stock has fallen nearly 18% in the last 24 hours, reaching its lowest level since the beginning of the pandemic. Revenue has also dropped by almost 12% compared to the previous year. The late launch of ESPN Bet, missing out on the New York sports betting market, has contributed to the revenue loss. However, the acquisition of Wynn Interactive Holdings may bring growth opportunities.
