Louisville, Kentucky, headquartered Churchill Downs Incorporated has reported a strong set of quarterly financial results, within which the group has returned to profit driven by a strong showing by its TwinSpires betting and gaming platform.
Net revenue for the quarter increased 28.2 per cent to $324.3m (2020: $252.9m), as net loss swung from 2020’s $23.4m to income of $36.1m, and adjusted EBITDA doubled to $110.6m (2020: $55.3m).
This comes after CDI suggested that it was focused on growth opportunities in its path to recovery, adding that it is attacking the year “with a relentless focus on strategic and organic growth opportunities.”
Breaking down those headline figures further, the company’s gaming segment took the lion’s share with revenue of $152m, representing a 4.18 per cent rise from $145.9m.
Adjusted EBITDA came in at $82.4m (2020: $47.9m), driven by a $24.1m increase at wholly-owned gaming properties and a $10.4m uplift from equity investments.
The group’s Fair Grounds Race Course & Slots, located in New Orleans, came out on top in the gaming division with revenue of $38.3m, a 21 per cent rise from $31.6m, trailed by Pennsylvania’s Presque Isle Downs and Casino, where revenue dropped to $23.8m, (2020: $27m).
Further increases came the way of Maryland’s Ocean Downs Casino’s revenue of $20m (2020: $14.8m), as well as $14.4m (2020: $12m) at Riverwalk Casino Hotel and Harlow’s Casino Resort & Spa’s $14m (2020: $11.3m), both located in Mississippi.
Revenue drops were also felt at Florida’s Calder Casino, where revenue reached $20.9m (2020: $21.8m); Maine’s Oxford Casino Hotel where revenue finished up at $15.7m (2020: $20.1m); and Lady Luck Nemacolin, with the Pennsylvania property reaching $4.9m (2020: $7.3m).
The recently rebranded TwinSpires saw revenue surge 44.2 per cent to $99.7m (2020: $69.1), primarily driven by $92.7m (2020: $66.6m) derived from horse racing, with the remaining $7m (2020: $2.5m) coming from sports and casino.
Furthermore, the group’s renamed live and historical racing segment scored an 189.1 per cent revenue rise to $63.2m (2020: $21.8m), due to a $19.4m increase at Oak Grove as a result of the opening of the HRM facility in September 2020 and hotel in October 2020, and an $11.3m increase from Derby City Gaming, primarily due to the temporary suspension of operations in March 2020 as a result of the COVID-19 pandemic.