Churchill Downs Inc.’s net income down in third quarter compared with 2011

Churchill Downs Inc. had net income of $6 million in the third quarter of 2012, down 70 percent from net earnings of $19.7 million in the same quarter of last year, largely because last year’s quarterly results were boosted by $19.3 million in revenue from a one-time distribution, according to financial statements released late Monday.

Revenue for the quarter from continuing operations was $164.9 million, down 1 percent from revenue of $166.3 million last year in the third quarter. Revenue from racing was down 6 percent, while revenue from Churchill’s casino operations was down 5 percent. Revenue from Churchill’s online operations, including its account-wagering site, Twinspires.com, was up 9 percent.

According to the financial statements, Churchill had lower expenses in both its racing and casino gambling divisions, part of a cost-cutting strategy by the company. Expenses were 5 percent higher in its online division because of costs related to the developments of a new gambling site, Luckity.com, and an “exchange-wagering platform,” the company said in a release.

Handle through Twinspires.com, the largest account-wagering company in the United States, was up 10.6 percent during the quarter, Churchill said, compared with a 2.2 percent increase in overall wagering on U.S. races during the quarter.

The $19.3 million revenue item that had boosted last year’s quarterly results was a distribution from the Illinois Horse Racing Equity Trust Fund. The distribution had been held up by civil disputes.