BREAKING: 119,000 Jobs Added In Sept., Jobless Rate 4.4% Major League Baseball on Wednesday announced three-year deals that divide up the media rights to America's Pastime between ESPN, NBCUniversal and Netflix. The new deals covering the 2026-2028 seasons come after the LA Dodgers beat the Toronto Blue Jays in the 2025 MLB World Series, which averaged more than 51 million viewers globally, according to the league. "Our new media… 11/19/2025Anyone interested in buying Warner Bros. Discovery has until Thursd ...

BREAKING: Futures Edge Lower After Shutdown Ends Dow Jones entertainment icon Walt Disney (DIS) ended its fiscal year with a mixed performance, amid the ongoing transition from a legacy media company reliant on cable television to one that offers a variety of streaming platforms. Disney stock dragged in early trade. Disney Earnings The Burbank, Calif.-base company reported earnings per share of $1.11 on revenue of $22.5 billion.… Related news 11/11/2025Streaming video giant Netflix on Wednesday opened its f ...

Core Insights - PENN Entertainment reported Q3 CY2025 revenue of $1.72 billion, a 4.8% year-on-year increase, but fell short of analyst expectations of $1.73 billion, resulting in a 0.6% miss [5] - The company experienced a non-GAAP loss of $0.22 per share, significantly below the consensus estimate of a loss of $0.03 [5] - Adjusted EBITDA was reported at $194.9 million, missing analyst expectations of $385.2 million, reflecting an 11.3% margin and a 49.4% miss [5] Management Commentary - Management attributed the underperformance to challenges in digital operations, particularly lower-than-expected online sports betting volumes and customer-friendly game outcomes [3] - The early termination of the ESPN partnership was noted, with management stating it was necessary to realign interactive focus and enhance connectivity across the ecosystem [3][4] - The transition to a unified digital brand strategy is expected to improve efficiency and profitability, with a focus on cross-selling between digital and land-based assets [3] Strategic Changes - PENN announced the early conclusion of its ESPN marketing agreement due to insufficient competitive scale for ESPN Bet, reallocating resources to higher-return segments [6] - The company is shifting its digital focus to theScore Bet, leveraging its established presence in Canada and North America, with a seamless customer transition planned [6] - The North American iCasino business achieved a record quarterly gaming revenue, with a 40% year-over-year improvement attributed to increased cross-sell from sports betting [6] Operational Insights - The core regional casino business showed stable demand, particularly in markets without new competition, with new property openings contributing to customer reactivation [7] - Increased marketing and labor expenses in competitive markets led to temporary margin compression, but management expects these pressures to normalize as promotional activities stabilize [7]

Core Insights - ESPN has terminated its partnership with PENN Entertainment and has signed a new deal with DraftKings, making it the exclusive Official Sportsbook and Odds Provider of ESPN [1][7] - This shift highlights the competitive landscape of the U.S. sports betting market, particularly in light of recent scandals involving the NBA [3][5] Company Developments - The previous deal with PENN was valued at $1.5 billion over 10 years, with termination rights based on market share performance [4] - DraftKings' shares increased by nearly 1% following the announcement, while PENN's shares fell by over 6% [2][7] Market Context - The transition from PENN to DraftKings reflects the intense competition in the sports betting sector, especially as ESPN's betting platform struggled to compete with established players like DraftKings and FanDuel [3][4] - The change comes amid increased scrutiny of sports gambling practices, particularly following recent arrests related to NBA betting scandals [5][8]

Group 1 - Disney (DIS) and Penn Entertainment (PENN) will end their exclusive ESPN Bet deal early, creating uncertainty for the sports-betting site [1] - DraftKings stock rebounded after reaching a two-year low, with earnings expected to be reported after market close [1] - Penn Entertainment's stock rose as the company aims to conserve cash and refocus on its regional casinos [1] Group 2 - The Dow Jones index experienced an increase on Thursday, while DoorDash, Duolingo, and ELF Beauty saw significant declines following their earnings reports [2] - Robinhood reported a doubling of revenue and more than tripled earnings, marking a 282% year-to-date increase [4] - DraftKings and Flutter have been downgraded as prediction markets are impacting their profit margins [4]

Financial Data and Key Metrics Changes - The retail segment generated revenues of $1.4 billion with adjusted EBITDA of $465.8 million, resulting in segment-adjusted EBITDA margins of 32.8% [13] - The interactive segment reported revenues of $297.7 million, including a tax gross-up of $139.5 million, and an adjusted EBITDA loss of $76.6 million [14] - Total liquidity at the end of Q3 was $1.1 billion, including $660 million in cash and cash equivalents [16] Business Line Data and Key Metrics Changes - The North America iCasino business achieved its highest quarterly gaming revenue to date, with a nearly 40% year-over-year improvement driven by record cross-sell from OSB of 62% [6][7] - iCasino monthly active users (MAUs) increased by 79% during Q3, with new all-time records for MAUs, gross gaming revenue (GGR), and net gaming revenue (NGR) set in October [7] - The transition to theScore Bet is expected to enhance digital business efficiency and profitability, with a focus on high-margin markets [5][8] Market Data and Key Metrics Changes - The company noted stable demand across gaming and non-gaming amenities, particularly in regions not impacted by new supply and increased competitor promotional activity [9] - The new Hollywood Casino in Joliet has driven impressive volumes and database growth, with a 42% increase in the active database since opening [10] Company Strategy and Development Direction - The company is realigning its interactive focus to prioritize digital assets in Canada and the Hollywood iCasino product, leveraging cross-sell opportunities across its ecosystem [4][5] - The early termination of the ESPN agreement will cease cash payments and marketing obligations, allowing for a more flexible marketing strategy focused on high-return markets [12][23] - The company plans to continue investing in growth capital while managing share repurchases as a key component of its capital allocation strategy [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate increased competition and promotional activity, emphasizing the importance of maintaining a strong value proposition [36] - The company is focused on achieving profitability in its digital segment by 2026, with a clear plan for retention and marketing strategies post-rebranding [8][43] - Management highlighted the importance of controlling the business's cost structure and marketing budget to enhance profitability moving forward [8][23] Other Important Information - The company repurchased $154.1 million of shares at an average price of $19.34 per share in Q3, with a total of $354 million repurchased as of November 5 [17] - The total CapEx for 2025 is now projected at $685 million, reflecting a shift of some project costs into the next year [20] Q&A Session Summary Question: Impact of ESPN exit on near-term and long-term profitability - Management discussed the strategic investments made in digital business and the importance of cross-selling to the retail segment, emphasizing the younger customer demographic acquired through digital channels [27][30] Question: Increased competition and promotional activity - Management acknowledged the impact of new competition and promotional activity on operations, noting that while there may be temporary increases in costs, the company remains committed to delivering best-in-market offerings [34][36] Question: Customer retention strategies post-rebranding - Management expressed confidence in retaining customers during the transition to theScore Bet, highlighting improvements in product quality and user experience [70][71] Question: Future growth opportunities in Canada - Management indicated that while there are limited retail property options in Canada, they remain open to opportunistic acquisitions that align with their omnichannel strategy [61] Question: Leverage targets for the business - Management stated that the optimal leverage level is below five times, with a focus on balancing share repurchases, growth investments, and debt reduction [62]

Financial Data and Key Metrics Changes - The Retail segment generated revenues of $1.4 billion with adjusted EBITDAR of $465.8 million, resulting in segment adjusted EBITDAR margins of 32.8% [16] - The Interactive segment reported revenues of $297.7 million, including a tax gross-up of $139.5 million, and an adjusted EBITDA loss of $76.6 million [18] - Total liquidity at the end of 2025 was $1.1 billion, including $660 million in cash and cash equivalents [20] Business Line Data and Key Metrics Changes - The North America iCasino business achieved its highest quarterly gaming revenue to date, improving nearly 40% year over year, driven by record cross-sell from OSB of 62% [8] - The introduction of a standalone app and improved cross-sell from online sports betting led to a 79% increase in iCasino monthly active users (MAUs) during the third quarter [9] - The company expects fourth quarter 2025 revenues for the Retail segment to range from $1.41 billion to $1.43 billion, with adjusted EBITDAR ranging from $455 million to $475 million [18] Market Data and Key Metrics Changes - The company noted stable demand across gaming and non-gaming amenities, particularly in markets not impacted by new supply and increased competitor promotional activity [11] - The new Hollywood Casino in Joliet has seen a 42% increase in its active database since opening, with over 50% of that growth coming from previously inactive customers [12] Company Strategy and Development Direction - The company is shifting its interactive focus to prioritize digital assets in Canada and Hollywood iCasino products, emphasizing cross-sell opportunities across its ecosystem [5] - The transition to the Score Bet brand is expected to optimize the digital business and operate more efficiently, including replacing fixed media spends with performance-based marketing [7] - The company plans to continue investing in growth capital while also focusing on share repurchases and deleveraging [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to compete effectively in the evolving industry landscape, highlighting the importance of an omnichannel strategy [28] - The company aims to achieve breakeven or better in its interactive segment by 2026, with a focus on profitability and operational efficiency [10][96] - Management acknowledged the challenges posed by increased competition and promotional activity but remains optimistic about the company's ability to maintain its market position [41][44] Other Important Information - The company announced an early termination of its exclusive online sports betting marketing agreement with ESPN, ceasing cash payments at the end of 2025 [15] - A total of $38.1 million will be paid to ESPN for marketing services incurred through December 1, with an additional $5 million for traditional media support [15] - The company has repurchased $354 million of shares as of November 5, with a new three-year $750 million share repurchase authorization commencing on January 1, 2026 [21] Q&A Session Summary Question: Can you talk about the near-term and long-term profitability for interactive following the ESPN exit? - Management highlighted that the digital investments aimed to attract younger customers and cross-sell to retail businesses, with a focus on profitability moving forward [32][34][38] Question: How has increased competition and promotional activity impacted operations? - Management noted that while new competition has led to increased marketing costs, properties not impacted by new supply are performing well [41][44] Question: Can you clarify the expected marketing costs post-ESPN? - Management indicated that marketing costs will be significantly lower than those previously paid to ESPN, allowing for more targeted spending in high-return markets [48][49] Question: What are the strategies for customer retention during the rebranding to Score Bet? - Management expressed confidence in retaining customers due to improved user experience and a comprehensive marketing plan, emphasizing that the app experience will remain unchanged [84][90] Question: What is the company's leverage target moving forward? - Management stated that the optimal lease-adjusted leverage level is below five times, with a focus on deleveraging while remaining opportunistic in capital allocation [76][78]

Core Insights - Walt Disney Co. has signed a new multiyear deal with DraftKings Inc. to become the official betting site and odds provider for ESPN sports networks, replacing its previous partnership with Penn Entertainment Inc. [1] - The new agreement allows players to access DraftKings' sportsbook and daily fantasy contests through ESPN platforms starting December 1 [1] - Disney and Penn ended their 10-year $2 billion agreement due to a lack of significant market share capture in the sports betting sector [2] Group 1 - DraftKings' shares increased by 8.5% in early trading, while Penn's shares rose by 9.2%, indicating positive market reactions to the new deal [2] - The sports betting market, valued at $13.7 billion, is primarily dominated by DraftKings and FanDuel, with ESPN Bet struggling to gain traction [3][4] - ESPN Bet, which holds less than 3% of the mobile sports-betting market, will continue to be used for ESPN programming despite its low market share [4] Group 2 - Penn Entertainment will launch sports betting in the US under theScore Bet brand starting December 1, following the end of its partnership with Disney [4]

Core Viewpoint - Disney's ESPN and Penn Entertainment are ending their sports betting partnership early, which will result in the rebranding of ESPN Bet to theScore Bet, concluding the collaboration after just over two years instead of the planned ten years [1][2][3]. Group 1: Partnership Details - The partnership, initiated in 2023, allowed ESPN to rebrand Penn's sportsbook from Barstool Sportsbook to ESPN Bet, with an original term of ten years [1][2]. - The agreement included a clause allowing either party to terminate the partnership after three years if specific market share performance thresholds were not met [3]. - Penn's CEO Jay Snowden noted that both companies had made significant progress but mutually agreed to wind down the collaboration [3]. Group 2: Financial Implications - Under the original agreement, Penn was to pay ESPN $1.5 billion in cash over ten years and provide ESPN with approximately $500 million in warrants to purchase about 31.8 million shares of Penn common stock [5]. - The annual cash payments of $150 million from Penn to ESPN will cease in the fourth quarter, along with the warrants for common stock [6]. Group 3: Future Directions - ESPN is now looking for other media and marketing opportunities in the sports betting space following the termination of the partnership [4]. - The ESPN Bet brand is expected to be phased out by December 1 [5].

Core Insights - PENN Entertainment and ESPN have mutually agreed to terminate their U.S. sports betting contract, effective December 1, 2024, after a partnership that began in August 2023 [1][6]. Group 1: Partnership Details - The partnership aimed to enhance PENN's product offerings and create a cohesive ecosystem with ESPN, but both parties decided to amicably wind down the collaboration [3]. - ESPN's involvement in the sports betting market through this partnership was valued at approximately $2 billion [6]. Group 2: Future Strategy - PENN plans to rebrand its online sports betting (OSB) offering to theScore Bet®, targeting a launch date of December 1, 2025, coinciding with the expected launch of sports betting in Missouri, pending regulatory approvals [4]. - TheScore Bet brand currently operates in Ontario and will leverage connectivity with theScore media app, which has around 4 million monthly active users in North America [4]. Group 3: User Engagement and Transition - ESPN's collaboration with PENN resulted in over 2.9 million new users entering the PENN ecosystem, with a notable increase in first-time bettors during the fall [8]. - All outstanding payments to ESPN will cease in the fourth quarter of 2024, and ESPN will assist PENN in transitioning to theScore Bet [10].