Churchill Downs Incorporated (CDI) has reported results for FY2022 and those for Q4 of 2022. The company netted a record-high revenue of $1.8bn for the full year, an increase of 13% compared to the $1.6bn generated in the same prior year period.
The horseracing operator also posted an encouraging net income of $439.4m for the year, a soaring increase of 76% from 2021. Adjusted EBITDA also represented a positive 22% increase to $763.6m, up from the $627m generated in 2021.
CDI partially attributed the successful EBITDA results to the 148th Kentucky Derby, which broke records in this department. Live and historical horseracing was its strongest-performing sector, rising by 92% to achieve $180.9m for Q4.
Financial results for FY2022 included a revenue result of $1.8bn, a 12.7% increase on the company’s FY2021 results. Its net income also rose 76% to reach $439.4m while its adjusted EBITDA saw a 17.5% incline to hit $736.6m in FY2022.
Its Q4 performance was impressive too, with revenue rising by 31.6% to generate $480.1m compared to the $364.8m made in the same prior year period. CDI's net income, however, saw a huge year-over-year plummet of 97% to $1m compared to 2021's Q4 result of $43.3m.
This decline in net income could be explained by CDI's activity in the market, as it made a number of major acquisitions.
Significant Q4 developments included the completed acquisition of all the assets of Peninsula Pacific Entertainment LLC, which cost $2.75bn. There was also the purchase of Chasers Poker Room in Salem, New Hampshire as a means of expanding its historical racing machines (HRMs) to table game environments in the New England market.
It was a very busy Q4 for CDI, with the company also acquiring Ellis Park Racing on September 26. This purchase included the rights to build an HRM entertainment venue in Owensboro, Kentucky.
