Churchill Downs Incorporated (CDI) has reported a record $393m in third quarter net revenue, up by 16% from Q2’s $337.8m earnings.
The Louisville-based gaming juggernaut posted a net income of $61.4m for Q3 2021, a 42% increase when compared to the company’s $43.2m take from the same period last year.
Horse racing revenue played an integral role in Churchill’s strong quarter, especially the earnings from its TwinSpires Horse Racing segment which delivered an adjusted EBITDA of $31.2m, a 56% increase over pre-pandemic levels, with its handle alone up by 31%.
However, its horse racing revenues were down from Q3 2020, though the company attributes this to the timing of the Kentucky Derby.
“The running of the 146th Kentucky Oaks and Derby in the third quarter of 2020, compared to the running of the 147th Kentucky Oaks and Derby in the second quarter of 2021, significantly impacted the comparability of net revenue and adjusted EBITDA,” remarked Churchill Downs.
This decrease was partially offset by the company’s other segments, with its wholly owned casino properties helping its third quarter performance, recording 7.6 points of margin expansion over Q3 2019.
In addition, CDI made several key sales during Q3, as well as announcing plans for a major development in Louisville, Kentucky.
In September, the company inked an agreement with the Chicago Bears which would see the NFL franchise assume ownership of Churchill’s 326-acre property in Arlington Heights, Illinois for $197.2m.
Around the same time, the company’s board of directors approved a common stock repurchase program of up to $500m.
Churchill then revealed its plans for a new historical racing machine (HRM) entertainment venue called Derby City Gaming Downtown, which will occupy a 43,000-square-foot plot in Louisville.