Finish Line's Earnings Drop In Q4 Wheaties Ads Spotlight Legendary Bowler Airbnb Signs On For '16 Games MLS Reaches TV Deal With Brazil's Globosat NCAA Tourney Continues Record Ratings National Women's Hockey League Created TaylorMade-Adidas Golf CEO Steps Down Unions, Inglewood NFL Developers Reach Deal Classified Advertisements Grassroots Approach Spurred United's MLS Expansion
SBD/August 1, 2014/FinancePrint All
Churchill Downs Inc. posted Q2 net income of $57.3M on "record quarterly revenue" of $303.7M, according to Matt Hegarty of DAILY RACING FORM. All of CDI's major business segments "experienced growth" in the quarter, with racing revenue from its four tracks "up slightly" by 1%. Revenue from CDI's casinos were up 23% and revenue from the company's "mostly racing-related online business" was up 9%. Racing revenue during the quarter was $159.4M, a figure that "includes revenue" from the Kentucky Derby and Kentucky Oaks, held the first weekend in May. Although handle during Churchill Downs' spring meet fell 11.5 % amid "field-size declines and calls for a boycott," revenue at the track during Q2 was $118.3M, up 9% over the year-ago quarter. CDI raised the "takeout rates on wagering for its spring meet, spurring some horseplayers to call for the boycott." CDI also began seeking a "higher rate for its simulcast signal this year, which may have raised more money for the track from out-of-state simulcast outlets" (DRF.com, 7/30). At presstime, shares of CDI were trading at $88.08, up 1.8% from the close of business on Thursday (THE DAILY).
EXPANDING THE EMPIRE: In New York, Lauren Mineau reported CDI and Saratoga Harness Racing Inc. have "come to an agreement outlining the near finalization of a five-year deal in which CDI will take over management of Saratoga Casino & Raceway and purchase a 25-percent stake" in Saratoga Harness Racing. The deal was "not struck due to any financial woes at either establishment, but instead to finalize an ongoing partnership." Saratoga Casino & Raceway Senior VP/ Marketing & External Affairs Rita Cox said, "This stems from a relationship we've had with them for quite some time. We already work together and share a lot of the same core values." Saratoga Casino & Raceway said that it "does not expect any major management overhauls or changes as of right now" (THE SARATOGIAN, 7/31).