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Sep 30, 2024

Churchill Downs Q3 2024 Earnings Report

Churchill Downs' third quarter performance in 2024 demonstrated record revenue, net income, and Adjusted EBITDA, driven by strong growth across Live and Historical Racing, TwinSpires, and Gaming segments.

Key Takeaways

Churchill Downs Incorporated reported record third-quarter results, with significant growth in revenue and Adjusted EBITDA across all its major segments. The company opened The Rose Gaming Resort in Virginia and maintained its commitment to returning capital to shareholders through increased dividend payouts.

Record net revenue reached $628.5 million, compared to $572.5 million in Q3 2023.

Net income attributable to CDI was a record $65.4 million, up from $61.0 million in Q3 2023.

Adjusted EBITDA hit a record $235.3 million, compared to $218.2 million in Q3 2023.

The Rose Gaming Resort opened in Dumfries, Virginia, featuring 1,650 historical racing machines and a 102-room hotel.

Total Revenue
$629M
Previous year: $573M
+9.8%
EPS
$0.97
Previous year: $0.87
+11.5%
Adjusted EBITDA
$235M
Previous year: $218M
+7.8%
Gross Profit
$186M
Previous year: $164M
+13.2%
Cash and Equivalents
$153M
Previous year: $193M
-21.0%
Free Cash Flow
$43.8M
Previous year: -$89M
-149.2%
Total Assets
$7.17B
Previous year: $6.75B
+6.3%

Churchill Downs

Churchill Downs

Churchill Downs Revenue by Segment

Forward Guidance

Churchill Downs Incorporated is focusing on expanding its HRM venues and gaming resorts. Planned projects include the Starting Gate Pavilion and Courtyard at Churchill Downs Racetrack, the Rose Gaming Resort in Virginia, and HRM venues in Owensboro and Calvert City, Kentucky.

Positive Outlook

  • Expansion of live and historical racing venues.
  • Development of new HRM venues in multiple locations.
  • Focus on enhancing entertainment experiences.
  • Commitment to shareholder returns through dividends.
  • Strategic capital project investments.

Challenges Ahead

  • Potential for cost overruns in development projects.
  • Delays in project completion timelines.
  • Increased competition in regional gaming markets.
  • Economic conditions affecting consumer spending.
  • Regulatory changes impacting operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income