Churchill Downs Inc. Posts Record Revenue In FY '13, But Net Income Falls 5%
Churchill Downs Inc. had net income of $55M in '13, down 5% compared with net income of $58.3M in '12, while "posting record revenues for the third year in a row," according to Matt Hegarty of DAILY RACING FORM. Revenue for the year rose 7% to a record $779.3M, with "the gain due entirely to higher revenues" from CDI’s casinos. Live racing revenue fell 9% during the year, "despite strong gains for the Kentucky Derby and Oaks, largely because of losses" at Calder Race Course in Miami. Revenue from CDI’s online operations, a "significant source of growth in the last several years," increased only 1%. In total for the year, live racing revenue dropped $27.4M, from $302M in '12 to $274.3M. Revenue at the flagship Churchill Downs jumped 7%, from $124.3M in '12 to $132.8M in '13. CDI said that the gains "were due to sharply higher revenue for its two busiest racedays, the first Friday and Saturday in May, when the Oaks and the Derby are held" (DRF.com, 2/26). In Louisville, Ed Green noted revenue for Q4 rose to $162.4M from $158.3M a year ago. That growth "was led by" a 25% gain in gaming revenue, compared with a 21% "decline in racing revenue compared with" Q4 of '13 (BIZJOURNALS.com, 2/26). At presstime, shares of CDI were trading at $91.01 per share, down 4.4% from the close of trading yesterday (THE DAILY).