PENN Entertainment, Inc. (NASDAQ:PENN) Q4 2022 Earnings Conference Call February 2, 2023 9:00 AM ET

Company Participants

Joe Jaffoni - Head, Investor Relations

Jay Snowden - Chief Executive Officer

Felicia Hendrix - Chief Financial Officer

Todd George - Head, Operations

Conference Call Participants

Barry Jonas - Truist Securities

Chad Beynon - Macquarie

Shaun Kelley - Bank of America

Joe Greff - JPMorgan

Ryan Sigdahl - Craig Hallum Capital

Bernie McTernan - Needham & Company

Brandt Montour - Barclays

John DeCree - CBRE

Joe Stauff - Susquehanna

Steve Wieczynski - Stifel

Stephen Grambling - Morgan Stanley

Operator

Greetings and welcome to the Penn Entertainment Fourth Quarter Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Mr. Joe Jaffoni, Head of Investor Relations. Please go ahead.

Joe Jaffoni

Thanks, Frank and good morning everyone and thank you for joining Penn Entertainment’s 2022 fourth quarter conference call. We will get to management’s presentation and comments momentarily as well as your questions and answers. [Operator Instructions]

Now, I will review the Safe Harbor disclosure. Please note that today’s discussion contains forward-looking statements. Forward-looking statements involve risks, assumptions and uncertainties that could cause actual results to differ materially. For more information, please see our press release for details on specific risk factors.

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

Jay Snowden

Thanks, Joe. Good morning, everyone. I am here in Wyomissing with our CFO, Felicia Hendrix and our Head of Operations, Todd George, as well as other members of my executive team who can help answer questions during Q&A. As you can see from our earnings release and corresponding investor presentation, we wrapped up another solid year at Penn despite ongoing macroeconomic headwinds throughout the year and severe weather in certain parts of the country in December.

Revenues for the fourth quarter were $1.59 billion, and we generated $468.3 million in adjusted EBITDAR. For the year, our results were slightly above the midpoint of our revenue and EBITDAR guidance ranges. We also ended the quarter on a high note with strong performance across the portfolio between Christmas and New Year’s, which has continued into January.

Slide 6 in our earnings deck illustrates our year-over-year revenue growth was driven by our Interactive segment, which despite the Mattress Mack $10 million winning bet on the Astros in the World Series was profitable in the fourth quarter with several successful state launches and impressive growth in Ontario.