Churchill Downs Inc. Reports Net Income of $249M in '21

Churchill Downs Inc. announced record net revenue in 2021 of $1.597 billion and net income of $249.1 million in a Feb. 23 release recapping its fourth-quarter and yearly business figures.

In 2020, CDI experienced an $81.9 million net loss when its track and gaming properties were impacted by capacity restrictions during the onset of COVID-19.

The Louisville, Ky.-based company further reported a record adjusted earnings before interest, taxes, depreciation, and amortization of $627 million in 2021.

Highlights for the company within Kentucky included record revenue at its Derby City Gaming historical horse racing parlor and growth in net revenue at its Oak Grove Racing, Gaming & Hotel. CDI also reported record earnings in the gaming segment of its holdings.

CDI plans to invest further in gaming properties, having announced Feb. 22 a definitive agreement to acquire substantially all of the assets of Peninsula Pacific Entertainment for total consideration of $2.485 billion. Those properties include casinos and Colonial Downs and its parlors with HHR gaming devices.

Ongoing or upcoming initiatives for CDI include three major multi-year capital investments at Churchill Downs, a $76 million investment to expand Derby City Gaming for up to 450 additional HHR machines, and a new five-story hotel, plus the development of the grandstand and HHR facility at Turfway Park.

CDI further plans to open Derby City Gaming Downtown in downtown Louisville with 500 slot-like HHR devices and develop the Queen of Terre Haute Casino Resort in Vigo County, Indiana.

Also in 2021, CDI announced the closure and sale of Arlington International Racecourse in Illinois for $197 million to the Chicago Bears and land near Calder Casino in Florida for $291 million to Link Logistics.

CDI reported its fourth-quarter 2021 net income was $43.3 million compared to $17.1 million in the prior year's quarter.

CDI's online wagering platform, TwinSpires, saw its Adjusted EBITDA of $119 million in 2021 drop 6% from the prior year, which CDI attributed to some patrons returning to wager at brick-and-mortar facilities in 2021 instead of online. TwinSpires Adjusted EBITDA remained up 52% from 2019.

Some of TwinSpire's loss of online horse-racing revenue was offset by a $6.4 million increase from its sports and casino business. Sports and casino net revenue increased as a result of expansion into additional states and marketing and promotional activities.

A conference call with reporters and analysts to discuss CDI's fourth-quarter and 2021 business returns is scheduled for 9 a.m. ET Feb. 24.