Why Penn Entertainment Stock Dipped Today

Penn, which has established itself in part as an online gambling company and is now the proprietor of Barstool Sportsbook following its full acquisition of Barstool Sports earlier this year, reported that revenue for the quarter increased by 7% to $1.68 billion, exceeding analysts’ projections of $1.59 billion.

The business said that although its Northeast region had good success, the results from its Southern region were not as favourable.

The company’s adjusted profits before interest, taxes, depreciation, amortisation, and rent (EBITDAR) decreased by 3.3% to $478 million, while the company’s interactive or online business continued to lose money, with an adjusted earnings before interest, taxes, and amortisation (EBITDA) loss of $5.7 million.

The operating income for the quarter also decreased, going from $292 million to $199.1 million, while the real estate gain contributed to the increase in net income.

Separately, it appeared that there was some fallout from the termination of one of the media celebrities at Barstool because he used a racial slur on broadcast while singing along with a rap song.

On Twitter, a number of Barstool supporters expressed their disdain for the Penn corporation, and several of them even claimed they would sell any Penn stock they had. Penn defended the action by stating that the event put the company’s gambling licences in jeopardy.