Online performance aids Churchill Downs results

Online performance aids Churchill Downs results

American thoroughbred horseracing and casino operator Churchill Downs Incorporated has released its financial results for the twelve months to the end of December showing a five percent rise in net revenues to $732.38 million.

The Louisville-based firm revealed that its annual earnings before interest, tax, depreciation and amortisation of $151.5 million represented its second highest ever driven by growth from its online and gaming businesses although this figure was five percent lower year-on-year due to the recognition of $19.3 million in net proceeds from the Illinois Horse Racing Equity Trust Fund.

The Kentucky firm operates the TwinSpires.com online wagering service and reported an eleven percent year-on-year boost in net revenues from iGaming to $183.27 million while earnings from gaming went up five percent boost when compared with 2011 to $223.11 million.

The American company additionally stated that handle for its online business in 2012 improved by eleven percent year-on-year and ‘continues to outpace [the] industry’ while earnings before interest, tax, depreciation and amortisation for its iGaming offerings swelled by seven percent when compared with 2011 to $40.3 million. This latter improvement was due in part to a 10.9 percent boost in its parimutuel handle driven by organic growth in customers and average daily wagering although partially offset by expenditures related to the launch of Luckity.com in addition to certain non-recurring employee costs.

Churchill Downs owns and runs the Churchill Downs Racetrack as well as horseracing facilities and casinos in Florida, Louisiana, Illinois and Mississippi and declared that its corporate net earnings and comprehensive income fell by nine percent year-on-year to $58.27 million while its earnings from continuing operations decreased by four percent when compared to 2011 to almost the same amount.

“Churchill Downs’ strong performance in 2012 was reflected in the 27.5 percent increase in the market price of Churchill Downs common stock from $52.13 at the end of 2011 to $66.45 at the end of 2012 and our second consecutive 20 percent dividend increase from $0.60 to $0.72 per share,” said Robert Evans, Chairman and Chief Executive Officer for Churchill Downs.

“I want to thank our customers for their continued loyalty and our employees for their exceptional contributions to Churchill Downs’ success in 2012.”