Churchill Downs Incorporated recently published its first-quarter 2024 earnings report, revealing a somewhat uneven performance. Although the corporation achieved unprecedented revenue, propelled by robust results in its live and historical racing divisions, earnings experienced a decline.
Overall revenue reached $590.9 million, a 6% increase from the corresponding period last year. This expansion was driven by a 15% surge in revenue from their live and historical racing events, notably at their Kentucky, Virginia, and Rosie’s Emporia venues. The online wagering platform, TwinSpires, also witnessed a substantial 18% revenue growth, partially attributed to the Exacta Systems acquisition and expansion within the retail and online sports betting sector.
Nevertheless, despite the favorable revenue trajectory, net income experienced a downturn, dropping by 48% to $80.4 million. This was partially counterbalanced by a 9% rise in adjusted EBITDA, which hit $242.5 million. Notably, the report does not elaborate on the specific factors contributing to the profit reduction, but it does indicate an $8 million revenue decrease from the gaming segment.
The start of 2024 presented difficulties for Churchill Downs Incorporated, as first-quarter earnings decreased by $4 million. This reduction was linked to the firm’s termination of its administrative contract with Lady Luck Casino Nemacolin, compounded by a difficult gaming environment in January.
Despite this obstacle, Churchill Downs maintains a positive outlook for its future. The corporation is actively broadening its gaming endeavors, with the eagerly awaited Rose Gaming Resort and Owensboro Racing & Gaming ventures scheduled to debut in late September 2024 and the initial quarter of 2025, correspondingly.
In further strategic actions, Churchill Downs concluded the divestiture of a 49% ownership interest in the United Tote Company to NYRA Content Management Solutions. The company also sustained its share buyback initiative, repurchasing $22 million worth of stock during the first quarter.
Although the first quarter of 2024 witnessed net income fall to $80.4 million compared to $155.7 million in the parallel period the prior year, it’s crucial to recognize that the preceding year’s results were substantially augmented by the post-tax profit from the disposal of the Arlington Park estate in Illinois.
This information follows a record-setting 2023 for Churchill Downs, with the enterprise announcing an impressive $2.5 billion in net revenue for the year, signifying a 36% surge from the year before.