Churchill Downs Incorporated Reports Record-Breaking Q1 2022 Earnings

Author of the posts By Gavin "Gust" Diaz Jun12,2024

Churchill Downs Incorporated (CDI) reported unprecedented net earnings of $364.1 million during the initial quarter of 2022, signifying a jump of almost $40 million contrasted with the corresponding timeframe last year.

The Louisville-headquartered racing and wagering enterprise experienced a robust commencement to 2022, with substantial expansion across both its wagering and live and historical equine racing divisions.

Wagering yielded nearly $1.8 billion in net earnings, a rise of over $25 million year-over-year, while live and historical racing contributed $87.2 million, up from $64.7 million in the first quarter of 2021.

CDI recognized that specific limitations on attendance in effect at numerous venues during the first quarter of 2021 were no longer relevant, rendering the year-on-year results of its land-based wagering operations even more remarkable. Live and historical racing also profited from the removal of operational limitations.

“Oak Grove and Derby City Gaming’s outcomes demonstrate the favorable influence from the elimination of operational limitations implemented in the first quarter of 2021, as well as the sustained comprehensive growth of the enterprise,” CDI stated regarding its live and historical racing divisions.

Regarding its land-based wagering, Churchill appended: “Net earnings in the first quarter of 2022 escalated $25.2 million, principally due to certain patron and betting volume limitations in place at Oxford, Calder, and Presque Isle during the preceding year no longer being active.”

Modified EBITDA for CDI’s wagering and live and historical racing segments amounted to $91.1 million and $27 million, correspondingly.

Churchill Downs Incorporated announced unprecedented adjusted earnings before interest, taxes, depreciation, and amortization of $128.5 million for the initial quarter of 2022, coupled with all-time high net income of $42.1 million. This remarkable outcome transpired despite a minor decrease in income from their TwinSpires digital wagering platform. Although TwinSpires generated $101.4 million in Q1 2022 versus $105 million in the corresponding timeframe last year, its earnings before interest, taxes, depreciation, and amortization actually rose, climbing from roughly $23 million to $24 million.

Author of the posts

By Gavin "Gust" Diaz

Holding a Ph.D. in Financial Mathematics and a Master's in Sociology, this accomplished author has a deep understanding of the financial and social dimensions of the casino industry and the role of gambling in shaping individual and collective economic behavior. They have expertise in option pricing, social network analysis, and behavioral finance, which they apply to the study of the financial risks and rewards of casino gambling and the social and psychological factors influencing gambling behavior. Their articles and news pieces provide readers with a socio-economic perspective on the casino industry and the strategies used to promote financial literacy and responsible gambling.

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