Churchill Downs Incorporated (CDI) has released its financial results for Q2 2023 revealing a 32% increase in net revenue to $768.5 million.
Despite reporting a record-breaking quarterly revenue figure, CDI also reported a significant drop in net income year-on-year.
According to the report, revenue growth was primarily driven by significant gains in both its live and historical racing and gaming segment. Reported earnings before interest, taxes, depreciation and amortization (EBITDA) were all-time records that contributed to an adjusted EBITDA of $363.7 million for Q2. This marked a 25% increase from the previous year’s Q2 EBITDA of $291.2 million.
However, CDI’s net income declined significantly by 58% to $143 million in Q2 2023. This was compared to net income of $339.3 million in the same period of last year.
The decrease in performance was attributed to multiple factors. These included a $193.6 million post-tax profit from the sale of surplus land adjacent to Calder Race Course in 2022, an $18.5 million post-tax rise in expenses in 2023 stemming from the impairment of Presque Isle Downs & Casino, and a $6 million post-tax overall growth in other expenditures.
CDI did note, however, that when the after-tax gains and increases listed above were excluded, Q2 net income increased by a total of $21.8 million compared to Q2 2022.
Report highlights
- Adjusted EBITDA $363.7 million (25% increase)
- Net income $143 million (58% decrease)
- Live and historical racing revenue $408 million (48% increase)
- Gaming revenue $247.9 million (34% increase)
- TwinSpires online revenue $139.1 million (0.43% increase)
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An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.