In the first quarter of 2022, Churchill Downs Incorporated (CDI) achieved a record revenue of $364.1 million (£290.4 million/€345.9 million), reflecting a 12.3% increase compared to the previous year.
Gaming led the charge, generating $179.2 million, a 16.4% year-on-year rise, aided by enhanced attendance limits at various locations, including the Oxford Casino Hotel in Maine, Florida's Calder Casino, and Presque Isle in Pennsylvania.
The gaming segment is poised for further growth with the planned acquisition of Peninsula Pacific Entertainment, bringing additional properties in New York, Virginia, and Iowa into CDI's portfolio.
Twinspires, the company's advance deposit wagering platform, generated $101.4 million, though this represented a slight decline from the previous year. A decrease in horse racing revenues was somewhat mitigated by growth in its sports and casino segments, which are gradually being phased out.
CDI’s live and historical horse racing division saw impressive growth, with revenue escalating by 34.8% to $87.2 million, attributed largely to increased revenues from the gaming sites in Oak Grove and Derby City, Kentucky.
The adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) reached $128.5 million, compared to $110.6 million in Q1 2021.
As properties reopened to full capacity following the easing of Covid-19 restrictions, operating costs rose by 14.1% to $316.7 million, resulting in an operating profit of $47.4 million, a slight year-on-year increase.
Interest expenses totaled $21.3 million, but a $32.5 million share of equity from unconsolidated affiliates contributed to elevating pre-tax profits by $11.2 million, bringing the total to $58.6 million. After accounting for $16.5 million in income taxes, CDI’s net profit for the quarter stood at $42.1 million, reflecting a 16.6% increase compared to the same quarter last year.
