Churchill Downs on Wednesday reported record fourth-quarter revenue of $624.2 million, an increase of $63 million, or 11 percent year-over-year.
In a release, the operator stated that the increase was largely because of the opening of the Terre Haute Casino Resort in Indiana, and partially offset by a $3 million decrease from its other properties because of “regional gaming softness and increased competition.”
Churchill Downs posted revenue for 2024 of $2.7 billion, up 11 percent, or $272.6 million compared to 2023. The opening of the Terre Haute Resort Casino, which resulted in a bump of $96.6 million, was credited with the increase. There was also a $2.7 million increase from an equity investment in Miami Valley Gaming in Ohio. The increases were offset by a $2.3 million decrease from other Churchill Downs’ properties and a $5.1 million decrease from an equity investment in the Rivers Des Plaines property in Illinois.
Churchill Downs also announced a multi-year series of capital projects that will enhance and expand the Kentucky Derby experience across three key areas of Churchill Downs Racetrack. The operator calls the series of projects “the largest expansion and renovation undertaken in the 150-year history of CDI.” The three projects are:
- The Skye Reconstruction and Expansion Project, that will take place just past the finish line and extend to the First Turn Club. It will replace 11,500 existing seats that consist of uncovered box seats and dated areas with 13,300 seats with a variety of premium hospitality experiences
- Conservatory Project will replace the temporary suites in the infield which line the homestretch of the racetrack. The project will replace 2,100 temporary seats with permanent structures providing more than 7,000 premium experiences for guests, including 36 suites.
- Infield General Admission Project will introduce three new permanent buildings within the infield that will provide guests with enhanced amenities for the Kentucky Derby.
“These projects as well as key infrastructure improvements, reflect the company’s commitment to providing world-class hospitality and premium seating options for guests for many decades to come,” Churchill Downs CEO Bill Carstanjen said in a statement. “We have a proven track record of prudently investing capital in the Kentucky Derby to create once-in-a lifetime experiences for our guests while also creating significant long-term value for our shareholders.”
Fourth-quarter adjusted EBITDA was $236.6 million, up $14.1 million or 8 percent. For 2024, adjusted EBITDA was $1.2 million, a 13 percent increase of $135.3 million.
Other highlights listed:
- The Rose Gaming Resort in Dumfries, Virginia, opened with 1,650 historical racing machines and a 102-room hotel. The resort is Churchill Down’s eighth HRM venue in Virginia.
- Owensboro Racing & Gaming in Kentucky opened on February 12 with 600 HRM, a retail sportsbook and simulcast wagering.
- Churchill Downs ended 2024 with a bank leverage of 4x and returned $218.3 million of capital to shareholders through share repurchases and dividends.
- Churchill Downs closed at $119.54 on the Nasdaq, down $2.04, or 1.68 percent.
