Hedge fund HG Vora Capital Management has formally requested the appointment of directors to Penn Entertainment’s board, according to a recent filing. Led by former Goldman Sachs banker Parag Vora, the fund holds an 18.5% economic interest in Penn Entertainment, including swaps.
Expressing concerns about the undervaluation of Penn’s stock, HG Vora noted ongoing discussions with the company’s management, with the goal of enhancing shareholder value. Despite a 16% decline in Penn Entertainment’s stock throughout 2023, there was a 4.8% surge in early trading following this disclosure.
Penn Entertainment recently entered the North Carolina online sports betting market through ESPN Bet in collaboration with Quail Hollow Club and the Wells Fargo Championship. However, its Q3 2023 financial report revealed a net loss of $725.1 million compared to previous periods, with a slight decrease in net revenue to $1.62 billion. While the Northeast and Interactive segments improved, the South, West, and Midwest segments experienced declines in various metrics.
In response to the financial report, Penn Entertainment’s CEO, Jay Snowden, mentioned, “We continued to see relative strength in several locations, including our casinos in Ohio, Kansas, Massachusetts, and Missouri, which highlights the benefits of our geographically diversified portfolio of premier regional gaming assets and the addition of retail sports betting offerings at many of our properties.”
