Churchill Downs Inc. has record second quarter revenue
Churchill Downs Inc. had record second-quarter revenue of $768.5 million this year, largely due to the contributions this year of businesses it has acquired in the past 12 months, according to financial documents released by the company on Wednesday afternoon.
This year’s second-quarter revenue figure compares favorably with the company’s second-quarter revenue of $582.5 million last year, but the vast brunt of the increase in revenue was attributed to casino properties Churchill acquired late last year in a $2.5 billion deal to buy Peninsula Pacific Entertainment Company. The acquisition included casinos in Virginia, Iowa, and New York.
Net income in the quarter was $143 million.
In a release, Churchill said that Kentucky Derby week revenues increased $20.5 million this year compared to last year. Churchill also said that the Virginia properties acquired in the Peninsula Pacific deal contributed $94.6 million in new revenue during the second quarter. Those properties include Colonial Downs, a racetrack and a casino, and its’ offtrack betting locations, which contain gambling machines. Colonial Downs did not hold any live dates during the quarter.
Revenue increased only slightly at Twinspires, the company’s account-wagering division, from $138.5 million last year to $139.1 million this year. During the quarter, horse racing handle through Twinspires was $635.1 million, up from $610.6 million in the second quarter last year, Churchill said.
Churchill spends a large portion of its promotional budget at Twinspires during the Triple Crown season, but this year operating expenses dropped from $90.2 million to $80.7 million, reflecting Churchill’s decision to close up a sports-betting operation last year tied to Twinspires.
Churchill also said in its statement that race-day cancellations in the second quarter associated with wildfire smoke and “higher content-related expenses” for Twinspires had a negative impact on earnings.
In June, Churchill suspended live racing at its Louisville track after a string of fatalities drew nationwide attention. In its statement, Churchill said that the decision to cease live racing and move the remaining dates to another Kentucky track the company owns, Ellis Park, cost the company an estimated $9.9 million in anticipated revenue at the Churchill live meet.
In its gaming division, Churchill had net revenues of $247.9 million, up significantly from the second quarter of last year, when revenues were $184.5 million. However, the entire difference was due to the addition of the Iowa and New York casinos in the Peninsula Pacific transaction, with no organic growth at its other casino properties, according to the financial statements.
Churchill paid $65.2 million in interest on its debt in the second quarter, up from $35.1 million in the second quarter last year. For the year, interest payments have totaled $129.9 million, compared to $56.4 million in the first six months of last year.
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