Churchill Downs Incorporated (CDI) declared unprecedented modified earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching $163.2 million during the third quarter, notwithstanding a decline in net earnings. This remarkable EBITDA result signifies a 4.5% rise year-over-year, even as net revenue witnessed a minor reduction of 2.5%.
The corporation’s revenue contracted by roughly $10 million year-over-year, concluding at $383.1 million versus $393 million the preceding year. This revenue downturn resulted in net earnings of $57 million for the third quarter, indicating a 7% fall from the $61.4 million announced in the corresponding period last year.
Churchill Downs’ equestrian and gambling outcomes displayed notable fluctuations. While their TwinSpires division, encompassing digital wagering, encountered a revenue contraction attributed to diminished earnings in sports and casino, their live and archived horse racing sector prospered with a substantial 26% revenue surge, attaining $102.4 million. This expansion was fueled by heightened betting at the company’s locations.
In aggregate, excluding the influence of Arlington’s operational outcomes, Churchill Downs attained an all-time high in adjusted EBITDA, hitting $163.2 million compared to $156.1 million in the parallel period the prior year.
Churchill Downs Inc. experienced a notable decrease in modified earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to the previous year. This decline was mainly attributed to the cessation of live racing activities at Arlington International Racecourse in late 2021. Consequently, Arlington did not hold live races during the third quarter of 2022, significantly affecting the company’s profits.
Moreover, it’s crucial to highlight that the adjusted EBITDA for 2022 will exclude any operational outcomes from Arlington, given the property’s sale to the Chicago Bears for development purposes.
