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Sep 30, 2023
Churchill Downs Q3 2023 Earnings Report
Churchill Downs reported record third quarter revenue and Adjusted EBITDA across its Live and Historical Racing and Gaming segments and record third quarter Adjusted EBITDA in its TwinSpires segment.
Key Takeaways
Churchill Downs Incorporated reported record net revenue of $572.5 million, a 49% increase compared to the prior year quarter. Net income was $61.0 million, up 7% compared to the prior year quarter. Adjusted EBITDA reached a record $218.2 million, a 34% increase compared to the prior year quarter.
Record net revenue of $572.5 million, up 49% compared to the prior year quarter.
Net income of $61.0 million, up 7% compared to the prior year quarter.
Record Adjusted EBITDA of $218.2 million, up 34% compared to the prior year quarter.
Completed the acquisition of Exacta Systems, LLC on August 22, 2023.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Churchill Downs Incorporated is finalizing 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.
Positive Outlook
- Completed the acquisition of Exacta Systems, LLC.
- Opened Rosie's Gaming Emporium in Emporia, Virginia.
- Opened six race and sports books at Kentucky properties.
- Launched a referendum campaign to develop a casino in Richmond, Virginia.
- Launched a referendum campaign to develop an HRM entertainment venue in Manassas Park, Virginia.
Challenges Ahead
- Decision not to renew the management agreement at Lady Luck in Pennsylvania led to a decrease in gaming revenue.
- Experienced a decrease in equity income from unconsolidated affiliates.
- Increased interest expense associated with higher outstanding debt balances and higher interest rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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