The company’s live and historical racing and gaming segments achieved new adjusted EBITDA highs.
US.- Churchill Downs Incorporated (CDI) has reported record revenue for the second quarter of 2023, However, net income dropped compared to last year.
The company’s live and historical racing and gaming segments achieved new adjusted EBITDA highs, helping CDI achieve a new record in overall adjusted EBITDA. Net revenue for the quarter was $768.5m, up 32 per cent year-over-year in comparison to Q2 2022’s $582.5m.
The company’s adjusted EBITDA was $363.7m, a 25 per cent increase compared to the previous year’s $291.2m thanks to the performances of live and historical racing and gaming segments. However, net income fell by 58 per cent to $143m (Q2 2022: $339.3m).
CDI noted that net income was impacted by a $193.6m after-tax gain on the sale of its Calder property in 2022, an $18.5m after-tax increase in costs in 2023 due to Presque Isle impairment, and a $6m after-tax net increase in all other nonrecurring expenses.
Excluding the after-tax gains and increases listed above, the company stated that its Q2 net income increased by $21.8m year-over-year due to a $43.9m after-tax increase primarily driven by operation results, while also being partially offset by a $22.1m after-tax increase in interest expense associated with higher outstanding debt balances.
By segment, Q2 live and historical racing revenue rose by 48 per cent to $408m (2022: $275.9m), while adjusted EBITDA for the segment increased by 36 per cent to $223.5m (2022: $163.9m).
The company highlighted a record Derby Week all-sources handle when the Churchill Downs Racetrack ran the 149th Kentucky Derby, contributing to adjusted EBITDA and the debut of the new First Turn Experience.