Churchill Downs Incorporated (CDI) announced on Wednesday a record-breaking net revenue of $590.9 million for the first quarter, a 5.6% increase from the same period last year despite a decline in net profit.
The surge in revenue, which surpasses the previous quarterly high for CDI, was attributed to robust growth across most of its core business areas. Past full-year 2023 also posted a record revenue of $2.46 billion.
In particular, the Live and Historical Racing segment saw a remarkable 14.3% revenue uptick, reaching a record $245.1 million, driven primarily by strong performance at Kentucky properties and the positive impact of the newly opened Rosie’s Emporia venue in Virginia.
However, the Gaming segment experienced a 4.3% decline in revenue, amounting to $239.2 million, largely due to the non-renewal of a management agreement at Lady Luck Casino Nemacolin in Pennsylvania and adverse weather conditions affecting other gaming properties.
The TwinSpires business contributed $106.6 million to the first-quarter revenue, marking a 12.5% increase from the previous year, fueled by the acquisition of historical horse racing provider Exacta and growth in retail and online sports betting. In addition, horse racing revenue was up $1.2 million.
Despite the revenue surge, total operating expenses rose by 5.7% year-on-year to $464.6 million, with higher costs across all business segments. Additionally, pre-tax profit for the quarter plummeted by 51.3% to $101.8 million, leading to a 48.4% decrease in net profit to $80.4 million compared to the same period in 2023.
Looking ahead, CDI unveiled plans for the new Rose Gaming Resort in Virginia, which is set to open in late September, and the Owensboro Racing & Gaming facility, with a planned opening in Q1 2025.
Moreover, the company announced this month the finalization of the sale of a 49% stake in its United Tote subsidiary to the New York Racing Association (NYRA).