[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Operator News

US – Oak Grove helps drive rebound for Churchill Downs

By - 26 April 2021

Churchill Downs reported first quarter net income of $36.1m compared to net loss attributable to Churchill Downs Incorporated of $23.4m in the prior year quarter.

For the first quarter of 2021, net revenue increased $35.6m from the prior year quarter primarily due to a $19.4m increase at Oak Grove as a result of the opening of the HRM facility in September 2020 and the hotel in October 2020, an $11.3m increase from Derby City Gaming primarily due to the temporary suspension of operations in March 2020 as a result of the COVID-19 global pandemic and the completion of their second outdoor patio which added an additional 225 HRMs in September 2020, a $4.4m increase at Newport due to the opening in October 2020, and a $0.5m increase from other sources.

Adjusted EBITDA increased $17.3m in the first quarter of 2021 from the prior year quarter due to a $8.9m increase from Derby City Gaming due to the increase in net revenue, increased operating efficiencies, and the temporary closure of the property in March 2020, a $6.6m increase at Oak Grove due to the opening of the HRM facility in September 2020, a $0.8m increase at Turfway Park due to an increase in handle, a $0.7m increase at Newport due to the opening in October 2020, and a $0.3 million increase at Churchill Downs Racetrack primarily due to the temporary suspension of operations in March 2020.

For the online offering TwinSpires, net revenue increased $30.7m from the prior year quarter primarily due to a $26.1m increase from Horse Racing and a $4.6m increase from Sports and Casino. Horse Racing net revenue increased as a result of an increase in handle of $113.3m, or 34 per cent, compared to the prior year quarter due to the continued shift from wagering at brick-and-mortar locations to online wagering. Sports and Casino net revenue increased as a result of the expansion in additional states since the first quarter of 2020 and increased marketing and promotional activities.

In terms of gaming, net revenue increased $6.6m primarily due to a $7.3m increase at Fair Grounds and VSI, a $5.2m increase at Ocean Downs, and a $5m increase at the company’s Mississippi properties, all of which resulted from the temporary suspension of operations in March 2020. Partially offsetting these increases were a $4.4 million decrease at Oxford, a $3.2m decrease at Presque Isle, a $2.4m decrease at Lady Luck Nemacolin, and a $0.9 million decrease at Calder, all of which resulted from certain operating restrictions.

William C. Carstanjen, Chief Executive Officer, said: “Our businesses delivered double-digit revenue growth and double-digit adjusted EBITDA growth for the first quarter 2021, compared to the first quarter of 2019. Our net revenues for the quarter were up 28 per cent compared to the same period in 2020 and up 22 per cent compared to the same period in 2019. Adjusted EBITDA was double the same period from last year and nearly 50 per cent higher than the same period in 2019.”

“The keys for us to delivering these results center around our continued long-term strategic focus on growth despite the short-term disruption of the pandemic the careful planning around our balance sheet and access to capital and the quality and focus of our operational leadership teams, more specifically over the last number of quarters through the first quarter we sought to protect the long-term value of our iconic asset, the Kentucky Derby, which remains the longest-running annual sporting event in the history of the United States. We planned aggressively but responsibly for the 2021 Kentucky Derby and will accelerate toward the 2022 event with what we expect will be significantly fewer if any COVID-related restrictions.”

“Our regional gaming properties delivered record adjusted EBITDA in the first quarter, which was more than half of the adjusted EBITDA growth in the first quarter for the company compared to the prior year and compared to the first quarter of 2019. All of our regional gaming properties are now open. Rivers was actually closed most of the month of January and both Presque Isle and Nemacolin were shut down in the first week or so of January,” he added.

Share via
Copy link