{"id":1776,"date":"2024-08-08T20:41:27","date_gmt":"2024-08-08T20:41:27","guid":{"rendered":"http:\/\/opiniao-publica24-7.com\/?p=1776"},"modified":"2024-09-04T15:49:57","modified_gmt":"2024-09-04T15:49:57","slug":"penn-ceo-quashes-takeover-speculation-on-earnings-call","status":"publish","type":"post","link":"http:\/\/opiniao-publica24-7.com\/index.php\/2024\/08\/08\/penn-ceo-quashes-takeover-speculation-on-earnings-call\/","title":{"rendered":"Penn CEO Quashes Takeover Speculation on Earnings Call"},"content":{"rendered":"

Penn Entertainment (NASDAQ: PENN) delivered second-quarter results earlier Thursday and recent speculation that the regional casino operator is a takeover target was briefly addressed on the company\u2019s conference call with analysts.<\/p>\n

\"Penn
Penn Entertainment CEO Jay Snowden. He told an analyst \u201cdon\u2019t believe everything you read\u201d about takeover rumors. (Image: Bloomberg<\/em>)<\/figcaption><\/figure>\n

Regarding consolidation rumors of which their firms at the center, the typical response by executives at companies in any industry is that they don\u2019t comment on speculation. In response to a question from JPMorgan analyst Joseph Greff, that was the approach taken by Penn CEO Jay Snowden, but he added rumors aren\u2019t always accurate.<\/p>\n

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What I will say is that as a company and as a board, we\u2019re always and always have, always will evaluate opportunities to enhance value and we\u2019ll continue to take actions that we believe are in the best interest of the Company and our shareholders,\u201d Snowden said. \u201cAnd, I would say, don\u2019t believe everything you read.\u201d<\/p>\n<\/blockquote>\n

Takeover chatter pertaining to Penn started in late May when investor the Donerail Group sent a letter<\/a> to the gaming company\u2019s board of directors encouraging it to sell itself to increase shareholder value. Related speculation ramped up several weeks later amid reports that rival Boyd Gaming (NYSE: BYD) was considering a bid of $9 billion or more for Penn.<\/p>\n

ESPN Bet Improvements Could Limit Penn Desire to Sell<\/h2>\n

In the weeks since the Penn takeover rumor emerged, analysts have widely speculated that Boyd is an unlikely buyer if the target\u2019s interactive unit, including ESPN Bet<\/a>, is part of the package and that a third party may need to get involved to buy the digital business.<\/p>\n

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There\u2019s also been discussion of Penn being a reluctant or an unlikely seller because ESPN Bet isn\u2019t a year old and the operator likely wants to see how the sports betting unit performs over the course an entire football season. Penn\u2019s interactive unit posted a second-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $102.8 million, but that was far better than the company\u2019s prior guidance of a loss of $135 million.<\/p>\n<\/div>\n

\u201cManagement cited improved risk & trading and parlay mix driving NGR growth (likely at high-flow through), with better than guided losses also benefiting from further sequential improvement in promo reinvestment,\u201d noted Stifel analyst Steven Wieczynski in a note to clients.<\/strong><\/p>\n

ESPN Bet<\/a> monthly active users surged 138% year-over-year with Penn management highlighting benefits from improved efficiencies, risk management, parlay offerings as drivers of improved structural hold.<\/p>\n

Penn Casino Sales Face Complexities<\/h2>\n

Penn runs 43 gaming venues in 20 states, implying it has an extensive menu from which to select for potential asset sales, but Snowden acknowledged there are complexities associated with such transactions.<\/p>\n

\u201cWith regard to your specific question on assets, just remember that our assets, land-based assets are all part of different leases, and so it\u2019s not as simple and easy as you just sell off an asset,\u201d the chief executive officer told Greff.<\/strong><\/p>\n

Gaming and Leisure Properties (NASDAQ: GLPI) owns the bulk of the land on which Penn casinos reside and would have to approve any sale of individual venues\u2019 operating rights to another company because the buyer would enter into a new lease agreement with the landlord.<\/p>\n

The post Penn CEO Quashes Takeover Speculation on Earnings Call<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Penn Entertainment (NASDAQ: PENN) delivered second-quarter results earlier Thursday and recent speculation that the regional casino operator is a takeover target was briefly addressed on the company\u2019s conference call with analysts. Penn Entertainment CEO Jay…<\/p>\n

Continue Reading “Penn CEO Quashes Takeover Speculation on Earnings Call”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":1778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/posts\/1776"}],"collection":[{"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/comments?post=1776"}],"version-history":[{"count":2,"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/posts\/1776\/revisions"}],"predecessor-version":[{"id":1779,"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/posts\/1776\/revisions\/1779"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/media\/1778"}],"wp:attachment":[{"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/media?parent=1776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/categories?post=1776"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/opiniao-publica24-7.com\/index.php\/wp-json\/wp\/v2\/tags?post=1776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}