Churchill Downs Inc. second-quarter net income up 27 percent compared to 2015
Churchill Downs Inc., the racetrack, casino, and social-gaming company, had net income of $69.8 million in the second quarter on record second-quarter revenue of $438.5 million, according to financial statements released late on Wednesday.
All of Churchill’s operating segments had higher revenue than in the second quarter last year, according to the statements, though some of the gains were slight. The second-quarter net income figure was up 27 percent compared with the same figure for the second quarter in 2015, while revenue for the quarter was up 7 percent.
In a release, Churchill said it had record revenue at its Churchill Downs racetrack during Kentucky Derby week this year, as the company continues to focus on leveraging its most visible asset. Revenue for its entire racing segment, which includes its operations at Churchill, Arlington Park near Chicago, and Fair Grounds racetrack in New Orleans, increased slightly in the quarter, from $155.4 million to $156.1 million. Expenses in its racing segment were $72.3 million, down from $75.1 million in the second quarter last year.
Churchill’s on-line betting operations had revenue of $68.5 million in the quarter, up 12 percent compared with revenue of $61.0 million in the second quarter last year. In a release, Churchill said that handle through its flagship twinspires.com betting platform increased 16.4 percent in the quarter. Expenses for twinspires.com increased 8.7 percent, to $41.4 million.
Churchill’s casino segment had net revenue of $84.4 million, up slightly from net revenue of $83.8 million in the second quarter of last year. Expenses for the segment declined slightly, by 1 percent.
Churchill’s social-gaming company, Big Fish, had net income of $125.2 million, up 19.8 percent. Expenses for the segment climbed 26.6 percent, from $83.4 million in the second quarter last year to $105.6 million this year. Churchill also had $9.7 million in research and development costs related to Big Fish’s operations.
Interest expense in the quarter climbed to $11.1 million, up 56 percent. At the end of the quarter, Churchill had long-term debt of $319.7 million, nearly double long-term debt of $171.9 million at the end of last year, according to the company’s balance sheet.