The return to normalcy at the Kentucky Derby (G1) and continued success at historic Kentucky horse racing venues, as well as burgeoning operations in Virginia spurred a record-breaking year for Churchill Downs Inc. in 2022.
In its full-year and fourth-quarter results released after trading closed on February 22, the Louisville, Ky. reported a record net income of $439.4 million, up 76% from $249.1 million in 2021. Adjusted earnings also hit a record at $763.6 million.
CDI reports that Churchill Downs the track saw a net revenue increase of $77.6 million mainly due to hosting the Kentucky Derby in 2022 with no capacity restrictions in place in 2021 as well as an increase of 67, $8 million mainly due to growth at HHR’s operations tied to Race ParkChurchill (Derby City Gaming) and Oak Grove (a standard track).
CDI also reported $8 million in sales thanks to acquired assets Ellis . Park and its HHR operations as well as the Poker Chasers Room in Salem, SMALL
On November 1, 2022, CDI completed the $2.75 billion acquisition of essentially all of Peninsula Pacific Entertainment’s assets, including Colony Downs racetrack, six HHR locations in Virginia, and rights to properties under development in Dumfries and Emporia, along with rights to up to five other HHR properties in Virginia (as well as casinos in New York State). and Iowa). That purchase is paying an immediate dividend to the company.
CDI reported that net sales for the fourth quarter of 2022 were up $87 million from the previous quarter mainly due to $62.4 million in sales from Virginia properties. Adjusted earnings for the fourth quarter of 2022 were up $30.6 million from the previous quarter primarily due to a $30.1 million increase on the back of Virginia properties.
Net sales for 2022 increased $215.8 million primarily due to $62.4 million in attributable revenue to Virginia properties and an $112.5 million increase in adjusted income for 2022 due to $30.1 million increase due to properties in Virginia.
The company reported a $16.2 million drop in revenue on its TwinSpires.com platform primarily due to a drop in parity bets as the majority of customers returned to betting at traditional locations rather than staking. online and after the first quarter of the 2022 decision on the discontinuation of live online sports and casino business. Upon leaving that segment, CDI reported a $40 million increase in adjusted earnings due to reduced marketing and promotions, resulting in a $31.4 million increase in adjusted earnings for the TwinSspires.com segment.
Other 2022 highlights as reported by the company include the completion of the sale of land attached to the former Calder Racecourse for $291 million. In a sale that took place in the first quarter of 2023, the company closed the property attached to Arlington International Speedway in Arlington, Ill., in a purchase of that land for $197, $2 million of the NFL’s Chicago Bears.
