Churchill Downs Inc. had a phenomenal year in 2021, with its income soaring by a substantial 52% to hit $1.59 billion. This remarkable expansion was driven by robust results across all divisions, including unprecedented achievements at Derby City Gaming and considerable growth at Oak Grove Racing, Gaming and Hotel.
The corporation’s earnings skyrocketed to $2.491 billion, a stark difference from the net deficit of $81.9 million reported the year prior. This exceptional fiscal performance was propelled by a blend of heightened income and enhanced operational effectiveness, leading to a record Adjusted EBITDA of $6.27 billion, signifying a 119% surge from the preceding year.
The company’s equine racing activities also displayed resilience and expansion. Although TwinSpires, the digital wagering platform, experienced a minor decrease in Adjusted EBITDA in 2021 compared to the prior year, it’s crucial to recognize this was still a notable 52% above pre-pandemic figures in 2019.
Churchill Downs is dedicated to strategic expansion and growth, as demonstrated by its significant $24.85 billion purchase of Peninsula Pacific Entertainment’s holdings. This acquisition, coupled with other planned expenditures, positions the company for sustained prosperity in the rapidly changing gaming and entertainment sector.
Churchill Downs Incorporated has been on a roll! They’ve invested heavily in enhancing their premier Churchill Downs Racetrack, introducing luxurious new lounges, a redesigned first turn area, and a comprehensive development initiative near the paddock and iconic spires. Their ambitions extend beyond the track – they’re also giving Derby City Gaming a significant makeover, incorporating numerous historical racing machines and constructing a lavish new hotel with all the amenities.
However, their strategy involves divesting certain assets as well. Arlington Park in Illinois was sold to the Chicago Bears (indeed, the football franchise!) for a staggering $1.97 billion, while Calder Casino found a new proprietor in Link Logistics for $2.91 billion.
The financial results? Churchill Downs concluded 2021 on a high note. They announced a net income of $43.3 million in the final quarter, a substantial increase from the $17.1 million earned in the corresponding period the previous year. Even more remarkable, their net income from ongoing operations reached $43.3 million in the fourth quarter of 2021, up from $16.4 million the prior year.
