Churchill Downs Incorporated (CDI) reported an unprecedented adjusted EBITDA of $163.2 million for the third quarter of 2022, notwithstanding a minor decline in both revenue and net income. Although revenue experienced a year-over-year reduction of approximately $10 million, the firm credited the robust EBITDA results to expansion in its primary horse racing activities and digital wagering division.
CDI’s TwinSpires online betting platform witnessed a marginal revenue contraction compared to the corresponding period in the previous year, which the company ascribed to diminished proceeds from sports wagering and iGaming, counterbalanced by an increase in horse racing. Nevertheless, the segment’s adjusted EBITDA exhibited year-over-year growth due to curtailed marketing expenditures.
The company’s live and archived horse racing division experienced more substantial revenue gains, surging by 26% year-over-year. Churchill Downs attributed this upswing to the resurgence of its renowned Kentucky Derby event, which was conducted without attendance limitations for the first time since the onset of the pandemic.
In summary, Churchill Downs’ impressive third-quarter outcomes underscore the durability of its fundamental horse racing enterprise and the sustained expansion of its online wagering platform.
In a renowned quote, Winston Churchill stated that the principal factor contributing to the decrease in income and modified earnings before interest, taxes, depreciation, and amortization (EBITDA), apart from other contributing elements, was the discontinuation of equestrian competitions and simultaneous broadcasting activities at the close of 2021. Arlington did not organize any live races during the third quarter of 2022.
It’s important to note that the adjusted EBITDA for 2022 will exclude Arlington’s business activities as the property was acquired by the Chicago Bears.