Penn Entertainment sees narrower Q3 loss for online business

Investing.com-- PENN Entertainment Inc (NASDAQ:PENN) said on Monday that it expects a narrower loss from its online gaming business in the third quarter, citing better conditions in the sector and lower expenses.

Penn forecast adjusted earnings before interest, tax, depreciation and amortization for its Interactive unit to be a loss of between $90 million and $100 million, compared to prior expectations for a loss of $115 million to $135 million. 

The Interactive unit is the parent of ESPN Bet, one of the biggest sports betting platforms in the U.S.

Penn cited a “higher parlay mix” from its product, and lower promotional expenses as the driver of the smaller loss. 

Shares of the gambling firm surged as much as 13% in aftermarket trade, before sharply curbing gains to trade marginally higher.