Churchill Downs has announced robust financial results for the first quarter of 2023, showcasing substantial growth in net revenue and adjusted EBITDA compared to the same period in 2022. The company’s performance reflects its continued success and commitment to enhancing the horseracing and gaming experience.
Key Q1 2023 Financial Highlights:
Net revenue for Q1 2023 reached an impressive $559.5 million, marking a remarkable 54% increase compared to the first quarter of 2022, which reported $364.1 million.
The company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the same period surged to $222.9 million, reflecting a significant 73% growth.
Strong Performance in Live and Historical Racing:
Churchill Downs reported substantial growth in both live and historical racing net revenue for Q1 2023. The net revenue increased from $87.2 million in Q1 2022 to $215.8 million in the same period this year.
The adjusted EBITDA for the live and historical racing segment also showed remarkable growth, reaching $82.1 million, which is a notable 194% increase compared to the corresponding period in the previous year.
Record-Breaking 2022 Annual Revenue:
In 2022, Churchill Downs achieved a record-breaking annual revenue of $1.8 billion, showcasing its consistent success and position in the industry.
For the quarter ended December 31, 2022, the company reported revenue of $480.1 million, marking a substantial 31.6% increase compared to the same period in the previous year. The adjusted EBITDA for this period was also strong, reaching $180.7 million, reflecting a 42.3% increase.
Plans for the 150th Kentucky Derby Run for the Roses:
Churchill Downs Racetrack has unveiled exciting plans for the 150th Kentucky Derby Run for the Roses, featuring a year-long celebration.
These plans include adding more social areas, introducing 3,600 new seats, and providing 3,250 new standing-room tickets to enhance the experience for horseracing enthusiasts.
Enhancements to Twin Spires will offer fans access to additional vantage points, and the Paddock is set to undergo a $200 million renovation, doubling its current size and expanding its walking ring.
Strategic Asset Transactions:
In February, Churchill Downs Incorporated successfully completed the sale of the 326-acre Arlington Racecourse in Arlington Heights, Illinois, to the Chicago Bears. The final purchase price for the sale, initially agreed upon in September 2021, amounted to $197.2 million.
The proceeds from this sale were strategically applied toward the acquisition of gaming and racing properties previously agreed upon with Peninsula Pacific Gaming. This $2.49 billion transaction saw Churchill Downs Incorporated assume control of P2E’s assets in Virginia, New York, and Iowa, including Colonial Downs Racetrack in New Kent, Virginia, and six Rosie’s Gaming Emporium horse racing facilities in Virginia.
Churchill Downs’ exceptional Q1 2023 results underscore its strong position in the industry, continued growth, and unwavering commitment to providing an exceptional horseracing and gaming experience for its patrons.