Louisville, Kentucky, headquartered gaming, racing and online entertainment firm Churchill Downs Incorporated has reported a strong 40 per cent revenue increase during the year’s first quarter, following on from previous hopes that its 2018 purchases pay off throughout the year.
Building upon those, CDI has continued the trend throughout Q1 by completing the Presque Isle Downs and Casino, acquiring a 61.3% equity ownership interest in Midwest Gaming Holdings and securing certain assets related to the management of Lady Luck Casino Nemacolin.
Revenue for the period reached $265.4m, jumping from $189.3m, with adjusted EBITDA climbing 52 per cent compared to the previous year, as it soared to $74.6m from $49.2m.
CDI did however explain a significant drop in net income: “The company’s first quarter 2019 net income was $11.6m, comprised of $11.9m in net income from continuing operations and $0.3m in net loss from discontinued operations, compared to $182.0m in the prior year quarter, comprised of $14.1m in net income from continuing operations and $167.9m in net income from discontinued operations.”
Adding: “The company’s first quarter 2019 net income from discontinued operations decreased by $168.2m compared to the prior year quarter related to net income from Big Fish Games, driven by the $168.3m after-tax gain on the sale of Big Fish in January 2018.”
Breaking down its performance further, CDI’s gaming segment, including casino properties, saw a 51.2 per cent year-on-year increase to $170.1m from £112.5m,
That from its Churchill Downs segment, incorporating live and historical pari-mutuel racing at Churchill Downs Racetrack and Derby City Gaming, was significantly boosted to $21.4m (2018: $2.3m) “due to a $18.7m increase from the opening of Derby City Gaming in September 2018”.
CDI’s final reporting segment of online wagering, encapsulating TwinSpires, igaming and online sports betting, saw revenue drop slightly to $63.4m (2018: $63.6m), with active players growing 2.4 per cent while net revenue per active player declined 3.3 per cent.
