Churchill Downs Incorporated (CDI) commenced 2021 with a strong start, establishing a new benchmark for the initial three months concluding on March 31st.
Churchill Downs’ earnings reached an unprecedented peak of $364.1 million in the opening quarter, marking a 12.3% surge compared to the corresponding period in 2021. This translates to $364.1 million (£290.4 million/€345.9 million) and signifies a new company record.
Gaming emerged as the leading performer in the first quarter, with revenue attaining $179.2 million, representing a 16.4% year-on-year increase. This growth was fueled by the relaxation of capacity limitations at its Oxford Casino Hotel in Maine, Calder Casino in Florida, and Presque Isle Downs in Pennsylvania.
The gaming division is poised for further expansion through the acquisition of Peninsula Pacific Entertainment, which will incorporate assets in New York, Virginia, and Iowa into CDI’s holdings.
The operator’s advance deposit wagering enterprise, Twinspires, closely trailed with revenue of $101.4 million. This reflects a slight year-on-year decline, attributed to a reduction in horse racing earnings. However, this downturn was partially offset by growth in its sports and casino operations. The business is undergoing a gradual phase-out.
CDI’s live and historical horse racing business witnessed a 34.8% surge in revenue. The company attributed the $87.2 million in total revenue to heightened income from its Kentucky Oaks and Derby City gaming venues.
Adjusted EBITDA reached $128.5 million, contrasting with $110.6 million in the inaugural quarter of 2021.
With the easing of COVID-19 limitations, numerous hotels returned to full functionality. This led to a considerable 14.1% rise in operational expenditures for the current quarter, reaching a total of $316.7 million. Although operational earnings achieved a modest increase compared to the same period last year, reaching $47.4 million, interest expenses of $21.3 million resulted in a reduction in profits.
However, a $32.5 million equity share from non-consolidated subsidiaries helped to mitigate some of these losses, boosting pre-tax profits by $11.2 million to $58.6 million. After accounting for $16.5 million in income taxes, CDI’s net profit for the quarter amounted to $42.1 million, representing a 16.6% year-on-year improvement.
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