Churchill Downs Incorporated: Q3 FY24 Overview

Churchill Downs Incorporated (CDI) is one of the leading companies in the entertainment and gambling industry. It derives its name from the iconic Churchill Downs racetrack, which has been home to the legendary Kentucky Derby since 1875. The company is headquartered in Louisville, Kentucky.

Founded by Colonel Meriwether Lewis Clark Jr. in 1875, CDI has built on its rich legacy, expanding its operations into new and diverse areas while maintaining its historic roots.

Stock Market Presence

Churchill Downs Incorporated’s stock is traded on NASDAQ under the ticker symbol CHDN. The company has consistently demonstrated robust growth, attracting investors with its diversified business model and strong performance across multiple sectors.

Financial Results for Q3 FY24

In the third quarter of fiscal year 2024, Churchill Downs Incorporated delivered solid financial results. The company reported net revenue of $628.5 million, an increase of 9.78% compared to Q3 FY23 ($572.5 million). However, this was a 29.44% decline from Q2 FY24, which recorded $890.7 million.

Net income attributable to CDI reached $65.4 million, up 7.21% from $61.0 million in Q3 FY23. Compared to Q2 FY24, net income dropped by 68.75% (Q2 FY24: $209.3 million).

Adjusted EBITDA for the quarter was $235.3 million, representing a 7.84% increase from $218.2 million in Q3 FY23. However, it declined by 47.10% compared to $444.8 million in Q2 FY24.

Key Growth Drivers

• Increased attendance at major events, including the Kentucky Derby, which remains a significant revenue contributor.
• Growing popularity of online casinos and betting platforms, driving digital revenue growth.
• Expansion of gaming terminals and entertainment venues, boosting offline business contributions.

Despite the sequential decline in financial metrics compared to the previous quarter, the year-over-year growth highlights the company’s successful strategies across key segments. For a comprehensive overview of Churchill Downs Incorporated’s performance for the full fiscal year ending December 31, 2023, refer to our dataset.

Core Business Segments

Churchill Downs Incorporated operates through several key business segments:

• Racetracks and Event Management. This segment, the company’s historical foundation, includes the Kentucky Derby and Kentucky Oaks. CDI’s events continue to attract millions of spectators, both in person and via live broadcasts, generating substantial revenue.
• Gaming Facilities and Casinos. CDI owns and operates numerous casinos and gaming complexes. This segment has shown steady growth, driven by increased visitor numbers and high revenues from gambling activities.
• Online Betting Platforms. The company is heavily invested in its digital sector, offering online betting for horse racing and sports events. This segment has gained significant traction in recent years and contributes a considerable share of CDI’s profits.
• Entertainment Centers and Terminals. This segment includes slot machines and gaming terminals installed in entertainment venues nationwide. It has demonstrated consistent growth due to high demand for gaming entertainment.

Most Profitable Segments

The company’s top revenue drivers are:

• Racetracks and Events, particularly the Kentucky Derby, which remains a nationally celebrated event.
• Online Betting, a key growth engine fueled by an expanding user base and innovative products.

Churchill Downs Incorporated continues to hold a dominant position in the entertainment and gambling industry. The financial results for Q3 FY24 underscore the success of its diversification strategy, enabling revenue growth across all segments. Investors remain optimistic about CDI’s future, given its strong performance in both traditional and digital avenues.