Churchill Downs Reports Record $1.81bn Revenue
Churchill Downs Incorporated reported that last year brought it revenue of $1.81bn, which means an increase of 13.3% year-on-year. In particular, gaming generated $755.9m (up 8.6% year-on-year), while live and historical racing revenue was up by 50.2% to $614.6m. TwinSpires revenue faced a decrease of 3.4 % to $436.1m, while other revenue for the year amounted to $2.9m.
Adjusted EBITDA was 21.8% higher at $763.6m, while operating expenses climbed 13.4% to $1.49bn. After paying $169.4m in tax, Churchill Downs Incorporated got a net profit of $439.4m for the year.
The company has also reported its financial results for Q4 2022. The revenue was $480.1m, which is a 31.6% increase compared to the same period in the previous year. Adjusted EBITDA was 42.3% higher at $180.7m.
The primary source of revenue during Q4 was gaming with $210.9m of revenue generated (up 22.6% year-on-year). Live and historical racing revenue increased by 94.2% to $175.4m, while the revenue from the discontinued TwinSpires business fell 6.5% to $93.1m; other revenue totalled $700,000. The fourth-quarter net income was $1m.
The increase of financial results is due to the removal of COVID restrictions and acquisitions of new properties. When capacity limits and temporary closures during the pandemic period were over towards the end of 2021, CDI was able to return to normal operations across its land-based venues during 2022. Meanwhile, CDI added a number of new properties after the purchase of Peninsula Pacific Entertainment (P2E) in November 2022: the Hard Rock Hotel & Casino in Sioux City, Iowa, the Del Lago Resort & Casino in New York, six Rosie’s Gaming Emporium historical horse racing machine sites, and the Colonial Downs Racetrack, all in Virginia.
In other news, Merkur Gaming and Reel Games are partnering in Central America & the Caribbean.