Churchill Downs Incorporated (CDI) has announced record financial results for the second quarter of 2024, showcasing significant growth across multiple segments. With net revenue reaching $890.7 million, CDI achieved a 16% year-on-year increase. The company’s performance highlights its continued success and strategic expansion in various gaming and betting sectors.

Churchill Downs Incorporated Reports Record-Breaking Financial Results for Q2 2024

Key Financial Highlights

• Net Revenue: CDI reported net revenue of $890.7 million for Q2 2024, marking a robust 16% increase compared to the previous year.
• Net Income: Net income attributable to CDI surged 46% to $209.3 million, reflecting strong operational performance.
• Adjusted EBITDA: The company achieved an all-time high adjusted EBITDA of $444.8 million, up 22% from Q2 2023.

Segment Performance

1. Live and Historical Racing:

• Revenue: This segment saw a 20% increase in revenue to $490.2 million, driven by a record-breaking Kentucky Derby Week and expansions in Virginia.
• Adjusted EBITDA: Adjusted EBITDA for Live and Historical Racing grew 25% to $279.2 million.

2. TwinSpires:

• Revenue: TwinSpires, CDI’s online and retail sports betting platform, experienced a 15% revenue growth to $159.9 million.
• Adjusted EBITDA: The platform’s adjusted EBITDA rose 36% to $46.2 million, boosted by the Exacta transaction and expanded market access.

3. Gaming Segment:

• Revenue: The Gaming segment reported an 11% increase in revenue to $274.4 million, with the Terre Haute Casino Resort’s opening in April 2024 contributing significantly.
• Adjusted EBITDA: Adjusted EBITDA for this segment increased 14% to $140.7 million.

4. All Other Category:

• Revenue: The ‘All Other’ category, which includes intercompany revenue from the captive insurance company established in April 2024, recorded $1.9 million.
• Adjusted EBITDA: This segment saw a decrease in adjusted EBITDA to $21.3 million due to increased corporate compensation and administrative expenses.

Strategic Developments

• 150th Kentucky Derby: CDI hosted the 150th Kentucky Derby, achieving record handle for Derby Week.
• NBC Agreement: The company secured a new seven-year agreement with NBC to broadcast Kentucky Derby Week through 2032.

Financial Actions

• Share Repurchase: CDI repurchased 93,874 shares of its common stock at a cost of approximately $13.0 million.
• Credit Agreement: The company amended its senior secured credit agreement, extending the maturity dates of its revolving credit facility and Term Loan A facility from 2027 to 2029.

Comparative Performance

In Q1 2024, CDI reported net revenue of $590.9 million, a 6% increase from the previous year. However, net income fell by 48% to $80.4 million due to prior-year gains and expenses.

Conclusion: The Financial Results

Churchill Downs Incorporated’s record financial results for Q2 2024 underscore the company’s strong performance and strategic growth. With significant increases in revenue and adjusted EBITDA across key segments, CDI continues to demonstrate its leadership in the gaming and sports betting industry. The company’s strategic initiatives, including successful events and expanded broadcasting agreements, position it well for continued success and shareholder value enhancement.

FAQs About Churchill Downs Incorporated’s Q2 2024 Financial Results

1. What were Churchill Downs Incorporated’s net revenue and net income for Q2 2024?

For Q2 2024, Churchill Downs Incorporated (CDI) reported net revenue of $890.7 million, a 16% increase from the previous year. Net income attributable to CDI rose 46% to $209.3 million.

2. How did CDI’s adjusted EBITDA perform in Q2 2024?

CDI achieved an all-time high adjusted EBITDA of $444.8 million for Q2 2024, representing a 22% increase compared to the same period in 2023.

3. What were the revenue and adjusted EBITDA results for CDI’s Live and Historical Racing segment?

The Live and Historical Racing segment saw revenue increase by 20% to $490.2 million. Adjusted EBITDA for this segment grew 25% to $279.2 million.

4. How did TwinSpires perform in Q2 2024?

TwinSpires, CDI’s online and retail sports betting platform, experienced a 15% growth in revenue, reaching $159.9 million. Adjusted EBITDA for TwinSpires increased by 36% to $46.2 million.

5. What were the financial results for CDI’s Gaming segment?

The Gaming segment reported an 11% increase in revenue to $274.4 million. Adjusted EBITDA for this segment rose 14% to $140.7 million, driven in part by the opening of the Terre Haute Casino Resort in April 2024.

6. How did the ‘All Other’ category perform?

The ‘All Other’ category, which includes revenue from the captive insurance company established in April 2024, recorded $1.9 million in revenue. Adjusted EBITDA for this category decreased to $21.3 million due to higher corporate compensation and administrative expenses.

7. What were the significant strategic developments for CDI in Q2 2024?

CDI hosted the 150th Kentucky Derby, achieving record handle for Derby Week. The company also signed a new seven-year agreement with NBC to broadcast Kentucky Derby Week through 2032.

8. Did CDI make any notable financial actions in Q2 2024?

Yes, CDI repurchased 93,874 shares of its common stock at a cost of approximately $13.0 million. Additionally, the company amended its senior secured credit agreement to extend the maturity dates of its revolving credit facility and Term Loan A facility from 2027 to 2029.

9. How did CDI’s Q1 2024 results compare to Q2 2024?

In Q1 2024, CDI reported net revenue of $590.9 million, a 6% increase from the previous year. However, net income fell by 48% to $80.4 million due to prior-year gains and expenses.

10. What is the outlook for CDI following these financial results?

CDI’s strong financial performance in Q2 2024, marked by record revenue and adjusted EBITDA, along with strategic initiatives and successful events, positions the company well for continued growth and shareholder value enhancement in the future.