Churchill Downs Incorporated has announced business results for its third quarter, ending September 30, reporting net revenue of $383.1m. This was a 2.5% year-over-year decrease from the $393m posted in the third quarter of 2021.
Its net income also fell 7.7% annually, from $61.4m in Q3 of 2021 to $57m this quarter. However, there was also good news for Churchill Downs, with a record $163.2m adjusted EBITDA reported – a 4.5% increase from the same prior year period.
Churchill’s TwinSpires segment produced $107.4m, a $1.6m decrease from its Q3 results in 2021. This, the company said, was due to a $3.4m decrease in sports and casino revenue not being balanced by a $1.8m increase from its horseracing revenue.
The company performed strongly in the equestrian field in general. Its live and historical racing business recorded a 25% revenue increase, producing $102.4m, following its $81.5m revenue in Q3 2021. The segment also recorded a $6.8m rise in adjusted EBITDA.
The revenue decrease was attributed to the company’s Arlington race track in Kentucky not conducting any live racing in the third quarter of 2022.
The company stated: “All other revenue and adjusted EBITDA decreased primarily as a result of Arlington not conducting live racing in the third quarter of 2022 as we ceased racing and simulcast operations at the end of 2021.
Churchill Downs, therefore, excluded Arlington’s operating results from its adjusted EBITDA, ahead of its planned sale to the Chicago Bears.
