Churchill Downs Incorporated (CDI) began 2021 with a record-breaking period ending on March 31st.
Churchill Downs earnings reached a record $364.1 million in the initial three months.
CDI’s overall earnings increased by 12.3% annually to $364.1 million (£290.4 million/€345.9 million) in the three months concluding March 31, 2022, establishing a new company record.
Gaming was the leading performer in the initial quarter, with earnings of $179.2 million, up 16.4% annually, due to the relaxation of capacity limitations at its Oxford Casino Hotel in Maine, Calder Casino in Florida, and Presque Isle Downs in Pennsylvania.
The gaming sector will expand further through the acquisition of Peninsula Pacific Entertainment, which will add properties in New York, Virginia, and Iowa to CDI’s collection.
The operator’s advance deposit wagering business, Twinspires, closely followed with earnings of $101.4 million, slightly down annually, after horse racing earnings declined, partially offset by growth in its sports and casino operations. However, this business is being gradually eliminated.
CDI’s live and historical horse racing business saw earnings increase by 34.8%. The company attributed the $87.2 million total earnings to increased revenue at its Kentucky Oaks and Derby City gaming locations.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $128.5 million, compared to $110.6 million in the first quarter of 2021.
With the lifting of COVID-19 limitations, numerous hotels have returned to full functionality, resulting in a 14.1% surge in operating expenditures for the current quarter, reaching $316.7 million. Despite this increase, operational earnings still achieved $47.4 million, slightly exceeding the corresponding period in the previous year.
However, this figure was diminished by $21.3 million in interest charges. But a $32.5 million portion of equity from non-consolidated subsidiaries led to a $11.2 million rise in pre-tax earnings, reaching $58.6 million. After subtracting $16.5 million in income tax, CDI’s net profit for the quarter amounted to $42.1 million, signifying a 16.6% year-on-year growth.
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