Churchill Downs Incorporated (CDI) reported an all-time high adjusted EBITDA of $163.2 million for the third quarter, a 4.5% rise compared to the previous year. This robust operational outcome occurred despite a minor decrease in net income, which fell 2.5% for the quarter.
Total revenue for the corporation dipped to $383.1 million, a reduction of roughly $10 million versus the corresponding period last year. The company’s primary horse racing division, TwinSpires, generated $1.074 billion in revenue. This represented a small year-over-year decline, mainly attributed to reduced income from the sports betting and internet casino sectors. Nevertheless, Churchill Downs enhanced profitability in this area, with adjusted EBITDA for TwinSpires rising by $9 million due to lower marketing and promotional expenditures.
The corporation’s remaining divisions displayed favorable outcomes, notably its live and archived horse racing activities. This sector experienced a 26% surge in revenue, hitting $1.024 billion for the quarter. Churchill Downs ascribed the overall record EBITDA to solid operational execution and the removal of Arlington from its financial statements, following the sale of the racetrack in 2021.
To borrow a phrase from Churchill, though perhaps not in its original setting, “We shall not weaken or falter.” Churchill’s words weren’t about equestrian competition and Arlington Park, but the feeling applies. Arlington’s modified earnings before interest, taxes, depreciation, and amortization have declined, largely due to the cessation of live racing events in the third quarter of 2022, following their exit from the horse racing industry at the close of 2021. Their message is essentially, “Anticipate limited financial performance from Arlington until the Chicago Bears conclude their acquisition of the site.”
