Churchill Downs Incorporated has reported casino, racing and online wagering revenue increases for the fourth quarter and full year of 2018, as the company looks to a series of acquisitions to make a significant impact for the 12 months ahead.
Securing its $990m sale of Big Fish Games to Aristocrat Technologies early last year, CDI also closed the acquisition to secure 100 per cent ownership of Ocean Downs Casino and Racetrack located in Berlin, Maryland, which saw it release equity interest in Saratoga Casino Hotel in Saratoga Springs, New York and Saratoga Casino Black Hawk in Black Hawk, Colorado.
Furthermore, the organisation has also revealed further details of its pending acquisition of certain ownership interests in Midwest Gaming Holdings, stressing “as a result of the recapitalisation, the company’s ownership of Midwest Gaming will increase to approximately 62 per cent.
“The transactions are dependent on usual and customary closing conditions, including securing approval from the Illinois Gaming Board. The transactions are expected to close in the first half of 2019.”
This comes as Q4 revenues increased 22 per cent for the quarter to $219m (2017: $178.9m), boosting full year revenues 14 per cent from 2018’s $882.6m to a fraction over $1bn.
Various increases across a variety of properties drove casino revenues to $109.9m and $411.2m for Q4 and FY, up from $87.2m and $250.5m, whilst online wagering handle growth outpaced the US thoroughbred industry to come in at $61.7m (2017: $57.5m) and $295.4m (2017: $256.7) respectively.
Racing’s net revenues for the quarter fractionally rose to $34.1m from $32.9m, helping nudge along a full year to boost to $295.4m (2017: $276.6m).
Adjusted EBITDA for the final quarter of the year saw a 14 per cent increase from $37.8m to $43m, helping the FY figure to $328.8m, a 15 per cent rise from $286.2m.
The company’s fourth quarter net income was $11.4m, comprised of $7.3m in net income from continuing operations and $4.1m from discontinued operations, compared to $38.2m in the prior year quarter, made up of $34.4m from continuing operations and $3.8m from discontinued operations.
Seeing its quarterly figure impacted by a series of US tax related issues, full year net income came in at $352.8m, comprised of $182.6m from continuing operations and $170.2m from discontinued operations, compared to $140.5m in the prior year, comprising of $122.4m from continuing operations and $18.1m from discontinued operations.