The diverse Churchill Downs Inc. showed strength in all of its segments in a record-breaking first quarter of 2023 that ended March 31.
In reporting its first quarter results April 26, the Louisville, Ky.-based company said all three of its reporting segments enjoyed record adjusted earnings for the first three months of the year. Compared with the corresponding months of 2022, CDI filing reported 194% growth in its live and historical gaming operations, a 22% bump in its TwinSpires operation, and a 42% increase in gaming operations.
It all added up to adjusted earnings of $222.9 million for the first quarter of 2023, compared with $128.5 million in earnings in the first three months of 2022.
In November 2022 CDI completed a purchase of substantially all of the assets of Peninsula Pacific Entertainment for total consideration of $2.75 billion. The acquisition included all of P2E’s assets and operations in Virginia (Colonial Downs and historical horse racing outlets and licenses), New York, and Sioux City, Iowa. The first quarter marks the first full quarter for the company with those properties in place. Also, CDI’s Kentucky HHR operations continue to flourish.
“For the first quarter of 2023, net revenue increased $128.6 million due to a $97.7 million increase attributable to the Virginia properties acquired in the P2E Transaction, a $15.6 million increase due to the opening of Turfway Park in Northern Kentucky in September 2022, a $7.5 million increase attributable to properties acquired in the Ellis Park and Chasers Transactions, a $6.2 million increase from our Oak Grove property in Southwestern Kentucky, a $1.2 million increase from our Derby City Gaming property in Louisville, and a $0.4 million increase from Churchill Downs Racetrack,” CDI reported.
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The company announced April 25 a two-for-one stock split of its common stock and a proportionate increase in the number of its authorized shares of common stock.
