Louisville, Kentucky, headquartered gaming, racing and online entertainment firm Churchill Downs Incorporated has reported across the board growth, with fresh land-based acquisitions paying dividends for the firm.
CDI, which successfully held the 145th Kentucky Derby, which contributed record highs for wagering and adjusted EBITDA, saw revenue increase 26 per cent for the period ending June 30.
Reaching $477.4m from $379.4m the previous year, performance for the first six months of the year came in at $742.8m, representing a 30.6 per cent increase from $568.7m.
Net income for the quarter rose four per cent to $107.1m (2018: $103.1m), hindered by after tax impacts related to the firm’s acquisition of Midwest Gaming Holdings, with adjusted EBITDA up 23 per cent when contrasted with the prior year, jumping from $174.5m to $215m.
CDI, whose casino portfolio has been boosted by the purchases of Presque Isle Downs and Casino in Erie, Pennsylvania, Ocean Downs Casino in Berlin, Maryland, and Lady Luck Casino Nemacolin in Farmington, Pennsylvania, saw gaming revenues soar 64.3 per cent as figures for the quarter reached $177.8m (2018: $108.2m).
Revealing further reasons behind the $69.6m increase from the previous year, the company detailed several key reasons:
- $37.3m increase due to the acquisition of Presque Isle.
- $21.9m increase due to the consolidation of Ocean Downs Casino and Racetrack as a result of the acquisition of the remaining 37.5 per cent.
- $8.3m increase due to the company’s assumption of management and acquisition of certain assets of Lady Luck Casino Nemacolin.
- $1.4m increase across Mississippi properties, primarily due to increased attendance driven by the opening of our retail BetAmerica sportsbooks.
- $1.3m increase at Louisiana properties due to two additional off-track betting and video poker facilities and successful marketing and promotional activities.
- Partially offsetting these increases was a $0.6m decrease from other sources.
Revenue from CDI’s Churchill Downs racetrack for the period came in at $161m, up 3.9 per cent from 2018’s $154.9m, with a £21.2m input from its Derry City Gaming entity taking total revenue from the complex to $182.2m.
Online wagering grew 2.2 per cent from $94.1m to $96m, primarily due to TwinSpires, which experienced an increase of 18.8 per cent in active players, however net revenue per active player declined 12.7 per cent.
Adjusted EBITDA decreased $2.2m from the second quarter of the prior year primarily due to costs associated with the continued build-out of online sports betting and igaming operations, the first quarter of 2019 launch in New Jersey and an increase in marketing spend for TwinSpires.