Louisville, Kentucky, headquartered Churchill Downs Incorporated has secured record fourth quarter and full-year EBITDA, as an expanded US footprint pays dividends for the firm.
A 72 per cent quarterly EBITDA increase to $73.8m (2018: $48m) was reported by the gaming, racing and online entertainment firm, helping FY figures to reach $451.4m, a 37 per cent increase from $328.8m.
Revenue in the quarter, during which CDI closed the $46m acquisition of Turfway Park, grew 28 per cent from $219m to $280.6m, nudged along by a strong performance at Derby City Gaming. On a full-year basis a 32 per cent increase was reported as revenue finished at $1.32bn (2018: $1bn).
On a segmented basis, gaming continues to be the main driver for the firm, with revenue and EBITDA increase felt both on a quarterly and full-year basis.
Revenue for quarter increased 40.2 per cent to $168.3m (2018: $120m), helped by a $33.7m increase due to the acquisition of Presque Isle and a $8.7m rise due to the company’s assumption of management and acquisition of certain assets of Lady Luck Nemacolin.
Adjusted EBITDA reached $68.3m, an 83.6 per cent rise from $37.2m, primarily due to a $27m increase from equity investment in Midwest Gaming, as well as the Presque Isle and Lady Luck Nemacolin transaction.
Full-year gaming revenue rose 53.9 per cent to $694.8m (2018: $451.2m), driven by an $139m Presque Isle boost and $60m increase due to the consolidation of Ocean Downs as a result of the acquisition of the remaining 37.5 per cent in August 2018.
Adjusted EBITDA rose 61.4 per cent to $280.9m (2018: $174m), thanks to a $94.3m increase from equity investment in Midwest Gaming, the Presque Isle and the Lady Luck Nemacolin transactions, as well as Mississippi rises due to the opening of BetAmerica sportsbooks.
Online wagering during the quarter increased slightly to $61.8m, with adjusted EBITDA decreasing 23.2 per cent to $12.2m (2018: $15.9m) due to $4.2m of costs associated with the continued build-out of online sports betting and igaming operations and increased marketing spend.
On a full-year basis revenue saw a similarly minimal rise to $291.6m, with adjusted EBITDA falling 16 per cent to $66.3m (2018: $79m), due to the aforementioned costs.
Racetrack revenue for Q4 reached $42.2m, a 40.2 increase from $30.1m, with adjusted EBITDA finishing up with a significant increase to $9.2m (2018: 3.3m). Full-year revenue rose 38.8 per cent to $289.4m (2018: $208.5m), with adjusted EBITDA up 34.7 per cent from $102.4m to $137.7m.