CDI rebounds in first quarter

Churchill Downs Inc. had net income of $36.1 million in the first quarter of 2021, according to financial statements released late on Wednesday, a sharp turnaround from a $23.4 million loss in the first quarter of last year, when many of the company’s operations were curtailed by the emerging coronavirus pandemic.

Total revenue in the quarter was $324.3 million, up 28.2 percent from first-quarter revenue of $252.9 million last year, according to the statements. During the first quarter of 2020, Churchill had to shutter its casino and racetrack operations beginning in March, and the shutdowns of racetracks across the U.S. had significant impacts on its account-wagering business.

But those shutdowns, for the most part, did not exist in the first quarter of 2021. In addition, Churchill’s account-wagering company, like all major account-wagering companies in the U.S., has generated outsized growth rates in the past 12 months as handle has migrated to remote providers due to attendance restrictions. The company also opened a new casino in southwest Kentucky in the fall of last year, bolstering its casino numbers for this year’s first quarter.

Revenue for Twinspires.com, Churchill’s account-wagering company, jumped from $69.1 million in the first quarter of last year to $99.7 million in the first quarter this year, a gain of 44.3 percent. In its statements, Churchill said that first-quarter handle through Twinspires.com was $443.1 million, up 34.4 percent compared to first-quarter handle of $329.8 million last year. Those handle figures now include betting through Twinspires-branded sports betting operations, Churchill said.

In a note, Churchill disclosed that its Twinspires.com handle figure does not include handle through a separate entity known as Velocity, a rebate shop that caters to private teams operating computerized robotic wagering programs. Churchill did not directly disclose the results for that operation in the statements released on Wednesday.

The company’s live and “historical racing” segment – which refers to casino locations that exclusively use a type of gambling device relying on the outcomes of previously run races – had revenue of $63.2 million in the quarter, up more than double the 2020 number, but this year’s numbers include revenue from the new Kentucky casino, called Oak Grove. The numbers are further bolstered by full first-quarter operations of Churchill’s other historical horse racing facilities, which had to be closed in mid-March due to pandemic protocols.

In a statement accompanying the financial results, Churchill said that its Louisville casino, Derby City, had a record first quarter this year, with net revenue of $32.9 million, up 52 percent over the same number last year.

Churchill’s casino segment had revenue of $152.0 million in the quarter, up slightly from $145.9 million last year.