Churchill Downs Incorporated (CDI) recently released its financial results for the second quarter of 2023, showcasing impressive performance and significant milestones. With record-breaking net revenue of $582.5 million and net income of $339.3 million, CDI continues to solidify its position as a leading player in the industry.
Financial Performance:
CDI’s outstanding financial performance in Q2 2023 highlights its sustained growth and profitability. The company reported a remarkable net revenue of $582.5 million, representing a substantial increase from the second quarter of 2021. Additionally, CDI achieved a net income of $339.3 million, reflecting its ability to generate substantial profits. The adjusted EBITDA for the quarter, driven by the success of the 148th Kentucky Derby, reached $291.2 million, surpassing the $233.3 million reported in the same period last year.
Land Sale and Strategic Investments:
In an effort to optimize its assets and capitalize on opportunities, CDI made strategic moves during the quarter. The company sold 15.7 acres of excess land near Calder Casino for $291 million to Link Logistics, a Blackstone portfolio company. CDI received cash proceeds of $279 million from the transaction, which it intends to utilize for various purposes. The sale proceeds will contribute to the acquisition of property as part of its Peninsula Pacific Entertainment (P2E) acquisition and fund investments in replacement properties.
Acquisition of Chasers Poker Room:
CDI expanded its portfolio with the definitive purchase agreement to acquire Chasers Poker Room in Salem, New Hampshire. Chasers, a charitable gaming facility situated approximately 30 miles from Boston, Massachusetts, offers poker and a variety of table games. This strategic acquisition represents CDI’s commitment to diversify its offerings and enter new markets. With an estimated total investment of approximately $150 million, including the purchase, the transaction is expected to conclude in the third quarter of 2022.
Churchill Downs Incorporated’s financial results for the second quarter of 2023 demonstrate a record-breaking performance, driven by exceptional net revenue and net income. The successful sale of excess land and the forthcoming acquisition of Chasers Poker Room highlight CDI’s strategic approach to asset optimization and market expansion. As the company continues to invest in growth opportunities and deliver remarkable financial results, Churchill Downs Incorporated solidifies its position as a prominent leader in the industry.