Record Revenues for Churchill Downs in 2014
Blood-Horse
Crediting its racing, casino, and online businesses, Churchill Downs Inc. enjoyed record net revenues of $812.9 million in 2014, while also finishing the year with record revenues in the fourth quarter.
For the year, CDI net revenues increased $33.6 million, or 4%, powered by the acquisitions of Oxford Casino and Big Fish Games, along with strong Kentucky Oaks (gr. I) and Kentucky Derby Presented by Yum! Brands (gr. I) week performance. CDI reports an additional $8.8 million of EBITDA generated during Oaks-Derby week of 2014 compared with 2013.
Those strong numbers helped the company to adjusted EBITDA of $202.5 million, which also was a record and was up 15% compared with 2013.
The company did say some of those gains were offset by a decline in racing operations revenues from the cessation of pari-mutuel operations at Calder Race Course during the second half of the year and revenue declines at some casino properties.
Also on the racing side, CDI said Fair Grounds Race Course & Slots revenues declined $2.1 million for the year, Churchill Downs racetrack had losses outside of Oaks-Derby week, and Arlington Park revenues declined. CDI blamed the Fair Grounds losses on a decreased number of turf races, the Arlington decline on increased simulcast competition, and the Churchill decline on smaller field sizes.
CDI said its racing operations net revenues were down 5% to $261.5 million for the year, although adjusted EBITDA results improved 22% to $61.2 million because of the improved profitability during Oaks-Derby week.
The company said its TwinSpires.com advance-deposit wagering operation saw $5.8 million in increased revenues, up 3% compared with 2013. The company said the improvement was fueled by a 3% spike in handle at a time that total industry handle on U.S. races declined 2.8%. It said the ADW enjoyed a 19% increase in unique players.
“The company produced record net revenues and adjusted EBITDA results for both the fourth quarter and the full year of 2014,” said CDI chief executive officer Bill Carstanjen. “While we closed our acquisition of Big Fish Games in December, our record performance over the course of 2014 was largely driven by our racing, casino, and TwinSpires.com businesses. We look forward in 2015 to continuing the momentum in our traditional businesses as well as the new contributions of Big Fish Games and its exceptional team.”
In the final quarter of the year, CDI net revenues increased 4% compared with the prior year behind the acquisition of Big Fish Games in December, improved profitability related to the cessation of pari-mutuel operations at Calder Race Course, and an increase in earnings related to CDI’s share of operating income from Miami Valley Gaming.
