Churchill Downs Incorporated recently published its first-quarter 2024 fiscal performance, concluding on March 31st. Although the organization celebrated unprecedented earnings, its bottom line encountered a decrease compared to the corresponding timeframe last year.
The corporation earned $590.9 million in revenue, a 6% year-over-year leap and a new peak. Nevertheless, net income witnessed a substantial plunge of 48% to $80.4 million. Despite this, modified EBITDA (earnings before interest, taxes, depreciation, and amortization) hit a record $242.5 million, a 9% boost.
Examining separate divisions, live and historical racing observed revenue ascend 15% with adjusted EBITDA rising 23%. This triumph was primarily credited to expansion at their Kentucky Derby City Gaming establishment, their Virginia footprint, and the Rosies Gaming Emporia site which debuted in September 2023.
TwinSpires, their digital wagering service, encountered an 18% increase in revenue and a 35% surge in adjusted EBITDA. This was driven by their Exacta Systems purchase and the ongoing growth of their physical and internet sports betting ventures.
Their gaming sector, however, confronted a slight obstacle with an $8 million reduction in revenue.
Churchill Downs Incorporated saw a revenue decline, dropping $4 million, during the initial three months of 2024. This decrease can be linked to a few key elements. First, the organization withdrew from its managerial role at Lady Luck Casino Nemacolin. Additionally, the broader gambling sector experienced the effects of adverse weather throughout January.
Even with this downturn, the company continues to pursue its growth objectives. Churchill Downs revealed ambitious development blueprints for two fresh gaming enterprises: The Rose Gaming Resort and Owensboro Racing & Gaming. These initiatives are projected to commence in late September 2024 and the first quarter of 2025, respectively.
Furthermore, the company concluded the sale of a 49% interest in United Tote Company to NYRA Content Management Solutions. They also sustained their stock buyback initiative, repurchasing $22 million of their shares in the first quarter of 2024.
Although the company declared a net income of $80.4 million for the first quarter of 2024, this figure represents a reduction compared to the $155.7 million earned in the corresponding period last year. This disparity is primarily attributed to a one-time, post-tax profit from the divestiture of the Arlington Heights property in Illinois that transpired the previous year, coupled with certain modifications related to dealings, pre-opening expenditures, and other outlays.
It’s noteworthy that Churchill Downs is building upon a robust performance in 2023. The company achieved record-setting yearly net revenue of $2.5 billion, signifying a substantial 36% surge compared to the preceding year.