Fourth-quarter loss and bettor-friendly NFL results impact
- Penn Entertainment stock falls 13% on investments in ESPN Bet
- Fourth-quarter loss of $358.1 million
- Shares down about 40% in the past 12 months
- Revenue fell 12% to $1.4 billion
- Higher-than-expected promotional costs for ESPN Bet
- Bettor-friendly NFL results impact ESPN Bet
Shares of Penn Entertainment fell more than 13% to $19.50 after the casino operator reported a fourth-quarter loss of $358.1 million. This loss was primarily due to bigger-than-forecast investments in ESPN Bet, the company’s new sports-betting platform. Over the past 12 months, shares have declined by about 40%. The company’s revenue also fell by 12% to $1.4 billion, below analysts’ expectations of $1.53 billion. The higher-than-expected promotional costs for ESPN Bet, aimed at supporting a high volume of new customers, contributed to the company’s poor financial performance. Additionally, ESPN Bet was negatively impacted by bettor-friendly NFL results.
Companies Public: Penn Entertainment (N/A)
Companies Private: undefined
Key People: Will Feuer (Author), Jay Snowden (Chief Executive)
Factuality Level: 8
Factuality Just: The article provides specific financial information about Penn Entertainment’s fourth-quarter loss, including the amount of the loss, the adjusted loss, and the revenue. It also includes quotes from the company’s CEO explaining the reasons for the loss. However, the article does not provide any opposing viewpoints or independent analysis to verify the accuracy of the information presented.
Noise Level: 7
Noise Just: The article provides relevant information about Penn Entertainment’s fourth-quarter loss and the factors that contributed to it, such as investments in ESPN Bet and bettor-friendly NFL results. However, it lacks in-depth analysis of long-term trends or antifragility and does not explore the consequences of the company’s decisions on those who bear the risks. The article also does not provide scientific rigor or intellectual honesty, as it does not support its claims with evidence or data. Overall, the article contains some noise and lacks comprehensive analysis.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Just: The article pertains to the financial performance of Penn Entertainment, a casino operator. It discusses the company’s fourth-quarter loss due to larger-than-expected investments in ESPN Bet, their new sports-betting platform. The stock price fell as a result. However, there is no mention of any extreme event or its impact.
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