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pen entertainment interactive segment bar stool sports bootk tech change is set July.
The company plans to launch its own proprietary tech stack in all live states during the next period. MLB All-Star break in mid-July. It’s an ideal time with very few sports happening at that time to minimize disruption, PENN CEO Jay Snowden At the company’s fourth quarter financial results briefing, he said: Thursday.
The new Barstool Sportsbook and online casino platform will open up more opportunities for growth in the US and should be the first profitable year for the company’s interactive segment.
PENN stock plummets Four% In premarket trading, it was down about 4.4% Current 1:30 pm Eastern after the earnings release.
Barstool Sportsbook U.S. Stocks ‘Late A Bit’
because PENN paid the third party cambi While the company is working towards a technology transition, for its platform, US products are Ontariosaid Snowden.
“We couldn’t throw resources [the US products] Innovate, iterate, and focus on enhancements. So we’re a little behind, and I think the market share for sports betting in the US this fall and this winter has softened a bit. By comparison, we’re not really focused on driving acquisitions knowing we’re not competitive here in the US right now.
So we made a conscious decision that we were fine with that. We want to focus on retention here in the US. We would like to focus on acquisitions and retentions in Ontario, but we are very pleased with the progress we are seeing. Across all metrics in Ontario, once you’ve converted and moved to your own platform, you can really lean in. ”
Ontario sees ‘really great trends’
Ontario’s sports betting and online casinos, where theScore Bet moved to its own technology last summer, show a promising trend. as a result, 85% Improved 3-month customer retention and 19% improvement in cross-selling to online casinos.
PENN is $2 billion Acquisition of Score Media October 2021.
Snowden said the state is now the top market for both online sports betting and online casinos. 50% Increased number of operators.
“We’ve seen some really great trends in Ontario and I’m confident we’ll be able to replicate them here in the second half of the year in the US,” said Snowden.
Increase Barstool Marketing Spend
Snowden expects the company to speak louder ahead of the football season in terms of marketing the Barstool Sportsbook in the US, which should result in negative third quarter EBITDA. This is a shift in Barstool’s strategy, which originally advertised a low-cost model for customer acquisition using a built-in media database.
He said the first two quarters should be close to break even and the fourth quarter will be profitable.
Overall, PENN $100 million Interactive EBITDA swing.The company reported negative EBITDA $74.9 million Expected positive EBITDA last year $25 million all year 2023.
Barstool’s Ohio’s Best Online Launch
Ohio was the company’s premier online sports betting launch for PENN, Executive Vice President of Operations. Todd George Said.
The launch ranked highest among first-time depositors and earned more than half of the company’s online handles. my choice database. Management didn’t mention how that database would intersect with Barstool’s consumer list.
One of PENN’s four properties posted record volume last Saturday. Snowden attributes a “significant portion” of that volume to the addition of retail sports betting and the entry of younger customers.
Snowden said he has been very pleased with his revenue and market share in Ohio’s sports betting so far and expects similar results online. Massachusetts sportsbook go live before march madness.
Other Barstool Sportsbook US stats
Interactive segment reported positive EBITDA $5.2 million in the fourth quarter of $208 million in earnings.For that $10 million Hit from mattress macwon the bet of Houston Astros.
Ryan Sigdal of Craig Halm He congratulated the team on its interactive turnaround and said he expects PENN to be the only company to report on it in the fourth quarter.
Interactive’s influence is felt throughout the company. 18.5% of average theoretical wins per day from 21-34 When 35-44 age demographics, according to the company’s investor presentation. Compare it:
- 17.8% of 2021
- 15.9% of 2020
- 12.6% of 2019
That’s why PENN spends $100 million This year we are upgrading our hotel rooms and adding Barstool Sportsbooks. CFO Felicia Hendricks Said.there is 31 retail sportsbook 14 state that has 18% market share, excluding Nevada.
Acquisition of Barstool Completed February 17
PENN buys the rest 64% About Barstool Sports not owned by the company $388 million upon February 17thsaid Hendricks.
For that $320 million In cash.
Snowden said the company will share more about its acquisition of Barstool Sports on its first-quarter conference call.
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