Churchill Downs Incorporated experienced a phenomenal 2021, generating an astounding $1.59 billion in earnings. This remarkable sum signifies a 52% jump from the prior year.
Their accomplishments didn’t cease there. The organization declared a net profit of $2.491 billion, a stark turnaround from the $81.9 million net deficit they encountered the year before. Their modified EBITDA also observed a noteworthy 119% rise, achieving an unparalleled $6.27 billion.
Each of their business divisions flourished. Derby City Gaming, as an illustration, commemorated record-setting net earnings and modified EBITDA. Concurrently, Oak Grove Racing, Gaming and Hotel, in its initial complete operational year, observed robust expansion in both net earnings and modified EBITDA across all its vital indicators.
Their gambling activities were a specific standout, with modified EBITDA soaring by 138% to attain an unprecedented $411.9 million.
Although their TwinSpires Horse Racing sector witnessed a minor decline in modified EBITDA in 2021 compared to 2020, it’s important to recognize that this sector still encountered a 52% boost in modified EBITDA relative to pre-pandemic figures in 2019.
Churchill Downs is not becoming complacent. The corporation executed a substantial maneuver by procuring all the holdings of Peninsula Pacific Entertainment for $2.485 billion and has proclaimed additional strategic allocations for sustained expansion in the approaching year.
The celebrated equestrian racing enterprise, Churchill Downs, has allocated substantial resources to elevate its infrastructure and broaden its operational scope. Specifically, they have embarked on three significant long-range capital ventures at the Churchill Downs Racetrack: the Finish Line Club, the First Turn encounter, and the Stable and Spire undertaking. These augmentations aspire to enhance the comprehensive racing involvement and draw in a more extensive viewership.
Moreover, Churchill Downs has committed a considerable $76 million to enlarge Derby City Gaming, its gaming and amusement locale. This expansion will accommodate a supplementary 450 vintage horse racing devices, further augmenting the gaming selections accessible to attendees. In addition, a novel five-story lodging establishment with 123 chambers and other conveniences will be erected, furnishing guests with expedient and agreeable dwelling alternatives.
Regarding asset relinquishments, Churchill Downs has consented to vend two holdings: Arlington International Racecourse in Illinois for $197 million to the Chicago Bears, and Calder Casino for $291 million to Link Logistics. These calculated divestments permit the corporation to refine its portfolio and concentrate on its fundamental assets.
Monetarily, Churchill Downs declared robust outcomes for the final quarter of 2021. Net earnings attained $43.3 million, contrasted with $17.1 million in the corresponding timeframe the prior year. From continuing operations, net earnings for the fourth quarter of 2021 were $43.3 million, exceeding the $16.4 million documented in the preceding year.
