Churchill Downs Q1; Net income drops 48% despite record revenue 

Gaming revenue fell behind live and historical racing revenue following a 3.3% revenue decline.

Churchill Downs Incorporated (CDI) has reported its financial results for the first quarter of 2024. The operator reported a record-high net revenue of $590.9m for the quarter, up 6% year-on-year, while net income dropped significantly, down 48% year-on-year for a total of $80.4m.  

This follows results from Q4 2023, which also set record-high revenue levels.  

Live and historical racing 

Live and historical horseracing (HHR) revenue totaled $248.9m in Q1 2024, up over $30m from the $215.8m reported this time last year. Adjusted EBITDA was also up, growing 22.8% year-on-year to $100.8m.  

Growth in revenue was reported as being caused by an $18.3m growth at the operator’s Kentucky HMR properties, with an additional $13.5m in growth reported from Virginia properties.  

Increases in adjusted EBITDA were also attributed to the operator’s Virginia and Kentucky properties, though growth was offset by expenses related to the upcoming Kentucky Derby. As seen in Q2 2023, the quarter is particularly profitable due to the race. Ahead of the Derby, CDI has partnered with SAP.  

TwinSpires 

For CDI’s TwinSpires segment, revenue and adjusted EBITDA were also up year-on-year, growing 18.5% and 34.7% for a total of $114.1m and $39.6m respectively.  

Retail and online sports betting revenue grew by $2.3m in the quarter, while horseracing grew by $1.2m. In terms of adjusted EBITDA, $9.4m was attributed to the operator’s Exacta transaction.  

Gaming 

Falling behind live and HHR revenue, CDI’s gaming segment made $243.2m in the quarter, with $122.8m in EBITDA. Both metrics were down year-on-year, decreasing 3.3% and 5.2% respectively.  

Declining revenue was mostly due to the operator’s decision to not renew its management agreement of Lady Luck Casino Nemacolin last summer, while adjusted EBITDA’s decline was down to bad weather, according to the report.  

Developments 

Alongside opening its latest casino, Terre Haute Casino Resort (THCR) in April, CDI has also been working on several other locations across the country. This includes The Rose Gaming Resort, which is set to open later this year alongside developments for Owensboro Racing & Gaming, which is scheduled to open in early 2025.  

During the quarter, CDI also partnered with Sports Illustrated and concluded its sale of United Tote Company to the New York Racing Association. 

Beth Turner

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