Behind the continued success of historical horse racing operations in both Kentucky and Virginia, Churchill Downs Inc. April 24 reported record first quarter net revenue and adjusted earnings.
The company also reported a 48% decline in net income for the first three months of 2024 compared to the first quarter of 2023 but that is largely tied to last year's $86.2 million after-tax gain on the sale of the former Arlington International Racecourse property.
In reporting record first quarter net revenue of $590.9 million, up 6% from the first quarter of 2023, and record adjusted earnings of $242.5 million, up 9% from last year, the company noted the continued success of its HHR operations.
In the report released after trading closed Wednesday, Churchill noted a $33.1 million revenue increase in its live and historical racing segment largely due to an $18.3 million increase in its growing Kentucky HHR properties and a $13.5 million increase through growth in its Virginia properties.
While HHR drove similar success in adjusted earnings, which were up $18.7 million in this segment, the company did report that gains were offset by a $2.7 million decrease at Churchill Downs racetrack driven by increased maintenance and promotional expenses ahead of the 150th edition of the Kentucky Derby (G1).
The company said that its TwinSpires segment saw revenue increase by $17.8 million compared with the corresponding months of 2023, largely behind a $14.3 million increase attributable to the company's Exacta Systems transaction completed in August 2023. Beyond that, the company reported a $2.3 million increase attributable to its retail and online sports betting business and a $1.2 million increase in horse racing revenue.
While adjusted earnings in this segment increased $10.2 million through the Exacta transaction and retail and online sports betting, the company reported a $600,000 loss driven by lower retail volume on horse racing.
