Churchill Downs Incorporated achieved unprecedented earnings in the initial quarter of 2024, yet witnessed a decline in profits due to the influence of prior-year income and expenditures.
The corporation’s Q1 financial statement for the three months concluding March 31, 2024, emphasized notable accomplishments and fiscal metrics for the period.
Churchill Downs revealed that its total revenue hit an all-time high of $590.9 million, a 6% rise compared to the corresponding timeframe last year. Despite the revenue expansion, profits plummeted considerably by 48% to $80.4 million. Nevertheless, modified EBITDA for the quarter also reached a new peak of $242.5 million, a 9% year-over-year surge.
Examining specific divisions, the live and historical racing sector witnessed a 15% revenue boost and a 23% adjusted EBITDA increase compared to the first quarter of 2023. This expansion was mainly fueled by heightened revenue from its Kentucky HRM facility and its Virginia locations, in addition to the inauguration of its Rosies Emporia establishment in September 2023.
The firm’s internet gambling platform, TwinSpires, encountered an 18% year-over-year revenue jump and a 35% year-over-year adjusted EBITDA increase. This growth was ascribed to the Exacta deal and the broadening of its physical and digital sports wagering activities.
Conversely, the gaming sector experienced an $8 million revenue reduction.
Churchill Downs Incorporated experienced a challenging start to 2024, posting a $4 million deficit attributed to the conclusion of their operational contract with Lady Luck Casino Nemacolin and unfavorable weather patterns in January that negatively affected gambling income.
However, the corporation is moving ahead with its growth strategy. They unveiled two fresh ventures, The Rose Gaming Resort and Owensboro Racing & Gaming, scheduled to debut in late September 2024 and the initial quarter of 2025, correspondingly.
In separate actions, Churchill Downs completed the divestiture of a 49% ownership interest in United Tote Company to NYRA Content Management Solutions and sustained its share buyback initiative, reacquiring $22 million worth of equity in the first quarter.
The company’s earnings for the first quarter of 2024 were $80.4 million, a notable reduction from the $155.7 million declared during the same timeframe last year. This disparity is primarily attributed to the post-tax profit from the sale of the Arlington Heights property in Illinois in the previous year and modifications connected to dealings, pre-launch expenditures, and other outlays.
This update follows a robust conclusion to 2023, with Churchill Downs announcing record yearly net revenue of $2.5 billion, a 36% surge in comparison to the preceding year.