Operator News
US – Churchill Downs sets new records with revenue up 49 per cent
By Phil - 26 October 2023
Churchill Downs generated record net revenue of $572.5m in its third quarter, up 49 per cent compared to the prior year quarter with record Adjusted EBITDA of $218.2 million, up 34% compared to the prior year quarter.
It delivered record third quarter revenue and Adjusted EBITDA across our Live and Historical Racing and Gaming segments and record third quarter Adjusted EBITDA in its TwinSpires segment. Live and Historical Racing revenue up 120 per cent and Adjusted EBITDA up 134 per cent compared to the prior year quarter.
Derby City Gaming delivered all-time record Adjusted EBITDA in third quarter and Oak Grove delivered record third quarter Adjusted EBITDA. TwinSpires revenue up five per cent and Adjusted EBITDA up nine per cent compared to the prior year quarter. Gaming revenue was up 32 per cent and Adjusted EBITDA was up 10 per cent compared to the prior year quarter.
The company said: “Revenue increased $123.1m driven by an $89m increase attributable to the Virginia properties acquired in the P2E Transaction, a $14.7m increase attributable to the properties acquired in the Ellis Park and Chasers Transactions, an $8.8m increase primarily due to the opening of Turfway Park in Northern Kentucky in September 2022, a $7.4m increase from our Derby City Gaming property in Louisville, and a $4.3m increase from our Oak Grove property in Southwestern Kentucky. These increases were partially offset by a $1.1m decrease at Churchill Downs Racetrack due to the decision to move July race days as part of the Churchill Downs Racetrack Spring Meet to Ellis Park.”
“Adjusted EBITDA increased $46.4m driven by a $38.3m increase attributable to the Virginia properties acquired in the P2E Transaction and a portion of the benefit from the Exacta Transaction, a $7.3m increase from continued growth at our Derby City Gaming property in Louisville and our Oak Grove property in Southwestern Kentucky, and a $2.9m increase attributable to our other Live and Historical Racing properties. These increases were partially offset by a $2.1m decrease at Churchill Downs Racetrack primarily due to the decision to move July race days as part of the Churchill Downs Racetrack Spring Meet to Ellis Park.
During the quarter Churchill Downs completed the acquisition of Exacta Systems. It also opened Rosie’s Gaming Emporium in Emporia, Virginia on September 26, 2023. This represents our seventh Rosie’s HRM entertainment venue in Virginia. The company is now finalising design and construction plans for a new HRM entertainment facility on a 20-acre site with convenient access to Highway 60 in Eastern Daviess County near Owensboro, Kentucky with a target opening date in first quarter 2025 and a target total spend of $100 to $110 million.
The company’s joint venture RVA Entertainment Holdings launched a November 2023 referendum campaign to win approval to develop a casino in Richmond, Virginia.
