Browse articles by topic

Churchill Downs returns to profit as revenue grows 51.1% in 2021


Churchill Downs Incorporated (CDI) reported net revenue of $1.59bn (£1.19bn/€1.43bn) for its 2021 financial year ended 31 December, helped by consistent year-on-year increases in every sector.

This was an increase of 51.1% compared to the net revenue reported in 2020.

Gaming made up $695.4m, a rise of 59.7% year-on-year. CDI’s TwinSpires online product recorded $431.7m in revenue, up 4.1%. Live and historical racing revenue rose 141.2% to $409.1m while all other revenue topped $61m, almost double the year prior.

However, gaming expenses came to $476.3m. This was up 33.0% year-on-year. The TwinSpires product created $325.4m in costs, up 17.9%. Live and historical gaming expenses totaled $288.9m while selling, general and administrative expenses came to $138.5m. The remaining $83.7m in costs came from all other expenses, asset impairments and transaction expenses.

Total operating expenses for the year came to $1.31bn, up 32%. This left operating income at $284.4m, which was a significant rise of 372.4% year-on-year.

Further expenses, including interest expense, equity and miscellaneous totaled at $59.2m, an increase of $107m. This brought the revenue from continuing operations to $343.6m. Following income tax benefit provisions at a cost of $94.5m, the total net income for the year came to $249.1m, a year-on-year rise of $331m after a loss the year before.

For its fourth quarter results, CDI reported revenue of $364.8m, up 31.1% compared to Q4 2020.

A total of $172.1m came from gaming operations, with $94.6m coming from TwinSpires. The remaining $98.1m was recorded in live and historical horse racing and other revenue.

Operating expenses for the quarter totaled at $330.1m, up 29.1% year-on-year. Gaming made up $121.3m of this, an increase of $29.2m. TwinSpires generated $78.1m, up $11.8m, while live and historical racing expenses grew 25.3% to $71.6m.

The operating expenses brought the operating income to $34.7m, up 52.8%.

Total other income came to $19.0, bringing the income from continuing operations at $53.7m. After considering income tax provisions of $10.4m, the total net income for the quarter was $43.3m, a rise of 153.2%.

In January 2021 CDI launched its TwinSpires brand in Michigan.

The following month CDI agreed to sell its Illinois Arlington Racecourse site. That same month it combined its sportsbook and online gaming product with its pari-mutuel horseracing wagering product TwinSpires.

In October 2021 CDI announced plans to open a historical racing machine entertainment venue in Louisville Kentucky.

This week CDI agreed to acquire assets belonging to Peninsula Pacific Entertainment for $2.49bn. CDI will assume control of Peninsula Pacific’s assets in Virginia and New York, in addition to the operations of its Hard Rock-branded Sioux City casino property in Iowa.