Churchill Downs Incorporated (CDI) reported unprecedented financial results for the first quarter of 2022, achieving $364.1 million in net revenue. This represents a surge of almost $40 million compared to the corresponding period in the previous year.
The Louisville-headquartered company’s accomplishments were driven by substantial expansion in both its gaming and live and historical horse racing divisions. Gaming yielded nearly $180 million in net revenue (a rise of over $25 million year-on-year), while live and historical racing produced $87.2 million (up from $64.7 million in the prior year).
CDI recognized that the removal of capacity limitations, which were enforced at numerous locations in the first quarter of 2021, contributed to the positive variance. Both its land-based gaming and live and historical racing segments profited from the elimination of these constraints.
Commenting on its live and historical racing operations, CDI noted: “Oak Grove and Derby City Gaming demonstrated the advantage of lifting operational restrictions implemented during the first quarter of 2021, as well as the sustained overall expansion of the enterprise.”
Concerning its land-based gaming operations, Churchill stated: “The surge in net revenue of $25.2 million during the first quarter of 2022 was propelled by the removal of certain capacity limitations on our patrons and gaming positions at our Oxford, Calder, and Presque Isle facilities, which were in effect during the preceding year period.”
Adjusted EBITDA for CDI’s gaming and live and historical racing segments reached $91.1 million and $27 million, correspondingly.
Every unit carries a price tag of $9 million.
During the initial three months of 2022, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached an unprecedented $1.285 billion, while net profits also soared to a new high of $42.1 million.
This accomplishment was attained despite a dip in revenue within Churchill’s TwinSpires sector. The division yielded $101.4 million in revenue during the first quarter of 2022, contrasting with $105 million in the corresponding period of the previous year. Nevertheless, TwinSpires’ EBITDA experienced growth, rising from roughly $23 million to $24 million.