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Revenue reached record $1.81bn at CDI in 2022


Churchill Downs Incorporated (CDI) achieved record revenue during its 2022 financial year, driven by the acquisition of new casino properties and the removal of pandemic-related restrictions on its venues.

As was the case with all land-based operators, CDI was impacted by measures including capacity limits and temporary closures during the pandemic period, with this having run into the first half of 2021.

However, with restrictions having been eased and eventually removed towards the end of 2021, this allowed CDI to return to normal operations across its land-based venues during the past year.

This included as its newly acquired properties in New York and Iowa, which were added to its portfolio following the purchase of Peninsula Pacific Entertainment (P2E) in November 2022.

Assets acquired included the Colonial Downs Racetrack in Virginia and six Rosie’s Gaming Emporium historical horse racing machine (HRM) sites across the state, as well as the Del Lago Resort & Casino in New York and the Hard Rock Hotel & Casino in Sioux City, Iowa.

Fourth quarter

With these assets having been acquired part way through the fourth quarter, CDI was able to report an increase in revenue for the three-month period as a result. Revenue in Q4 was up 31.6% to $480.1m.

Gaming remained the primary source of revenue, generating $210.9m in revenue during the quarter, up 22.6% year-on-year as a result of the additional properties now operating as part of CDI’s network.

Live and historical racing revenue increased 94.2% to $175.4m, but TwinSpires revenue fell 6.5% to $93.1m and other revenue totalled $700,000.

Operating expenses increased 41.9% to $468.4m and other costs reached $14.8m, leaving a pre-tax loss of $3.1m, compared to a $53.7m profit in 2021.

CDI received $4.1m in income tax benefits, resulting in a net profit for the quarter of $1.0m, down from $43.3m in the previous year. However, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was 42.3% higher at $180.7m.

Full year

Turning to the full year and revenue increased by 13.3% to $1.81bn This included $755.9m from gaming, up 8.6% year-on-year, while live and historical racing revenue was also up by 50.2% to $614.6m.

TwinSpires revenue dipped 3.4% to $436.1m, while other revenue for the year amounted to $2.9m.

Operating expenses climbed 13.4% to $1.49bn but gain on the Calder land sale and income from unconsolidated affiliates led to $287.0m in net other income. This left a pre-tax profit of $608.8m, up 77.2% year-on-year.

CDI paid $169.4m in tax, resulting in a net profit of $439.4m for the year, an increase of 76.4% on 2021. In addition, adjusted EBTIDA was 21.8% higher at $763.6m.