Churchill Downs Incorporated (CDI) has announced a remarkable set of financial results for the second quarter of 2024. The company achieved record net revenue of $890.7 million, reflecting a 16% year-on-year increase. This impressive growth was complemented by a substantial rise in net income and adjusted EBITDA, driven by exceptional performance across several segments and strategic expansions.
Record Financial Performance
CDI’s net income attributable to the company surged by 46% to reach $209.3 million in Q2 2024. This significant increase underscores the company’s robust financial health and operational efficiency. The adjusted EBITDA, which is a key indicator of operational profitability, hit an all-time high of $444.8 million, marking a 22% increase compared to the same quarter in the previous year.
Live and Historical Racing
The Live and Historical Racing segment showed remarkable growth, with revenues climbing 20% to $490.2 million. This growth was largely driven by a record-breaking Kentucky Derby Week and expansion efforts in Virginia. The adjusted EBITDA for this segment grew by 25% to $279.2 million, highlighting the segment’s strong operational performance.
The 150th Kentucky Derby, hosted by CDI during this quarter, set new records for handle, demonstrating the event’s continued appeal and CDI’s effective management of this flagship event. The segment’s growth was also supported by the signing of a new seven-year broadcasting agreement with NBC, ensuring Kentucky Derby Week coverage through 2032.
TwinSpires
TwinSpires, CDI’s online and retail sports betting platform, reported a 15% increase in revenue, totaling $159.9 million. The platform’s adjusted EBITDA rose 36% to $46.2 million. This growth was fueled by the Exacta transaction and expanded market access in online sports betting, positioning TwinSpires as a strong performer in the sports betting landscape.
Gaming
In the Gaming segment, CDI saw an 11% increase in revenue, reaching $274.4 million. The opening of the Terre Haute Casino Resort in April 2024 played a significant role in this growth. The adjusted EBITDA for the Gaming segment increased by 14% to $140.7 million, further demonstrating CDI’s successful expansion and operational efficiency in this area.
All Other Categories
The ‘All Other’ category, which includes intercompany revenue from CDI’s captive insurance company established in April 2024, reported revenue of $1.9 million. However, adjusted EBITDA for this category decreased to $21.3 million. This decline was attributed to increased corporate compensation and administrative expenses, impacting the overall profitability of this segment.
Strategic Initiatives
CDI has been active in strategic initiatives to enhance its financial performance and operational capabilities. The company repurchased 93,874 shares of its common stock at a cost of approximately $13.0 million. Additionally, CDI amended its senior secured credit agreement, extending the maturity dates of its revolving credit facility and Term Loan A facility from 2027 to 2029. These measures reflect CDI’s commitment to optimizing its capital structure and ensuring long-term financial stability.
Comparison with Q1 2024
In comparison, CDI’s performance in Q1 2024 showed net revenue of $590.9 million, which was a 6% increase from the previous year. However, net income for Q1 2024 fell by 48% to $80.4 million due to prior-year gains and expenses. This contrast highlights the significant improvement CDI achieved in Q2 2024, underlining the company’s strong performance and strategic execution over the past quarter.
Churchill Downs Incorporated’s Q2 2024 financial results reflect a period of exceptional growth and strategic success. With record-breaking revenues, increased net income, and substantial gains across its key segments, CDI has demonstrated robust financial health and operational excellence. The company’s strategic expansions, successful events, and financial maneuvers position it well for continued success in the future.