Churchill Downs Q1 Earnings Highlights: Revenue And EPS Beat, Record Adjusted EBITDA, Stock Split And More Ahead Of Kentucky Derby

Gaming entertainment, online wagering and racing company Churchill Downs CHDN reported first-quarter financial results after the market close Wednesday. Here are the key highlights.

What Happened: Churchill Downs reported first-quarter revenue of $559.5 million, up from last year’s $364.1 million in the same time period. The revenue beat a Street consensus estimate of $536.6 million, according to data from Benzinga Pro.

The company reported first-quarter earnings per share of $1.96, which beat a Street estimate of $1.79.

Revenue by segment in the first quarter was:

• Live and Historical Racing: $215.8 million
• TwinSpires: $96.3 million
• Gaming: $251.6 million

The Live and Historical Racing saw an increase in revenue thanks to additional racetracks. The Twinspires segment saw a decrease in revenue from the exit of the online sports and casino business in the first quarter of 2022. Gaming revenue was up over 100% year-over-year thanks to the inclusion of New York and Iowa properties that were acquired.

The company reported record adjusted EBITDA of $222.9 million in the first quarter, with all three reporting segments posting record first-quarter adjusted EBITDA.

Churchill Downs closed the sale of its Arlington Heights property to the Chicago Bears for $197.2 million in February 2023.

Related Link: Penn Entertainment Analyst Downgrades Barstool Sports Owner, Names 2 Gaming Stocks To Buy

What’s Next: Churchill Downs announced a two-for-one stock split on April 25. The split is expected to occur on May 22, 2023, with a record date of May 5, 2023 for shareholders.

The company will host its first-quarter conference call to discuss earnings on at 9 a.m. ET Thursday. 

The Kentucky Derby at the company’s flagship Churchill Downs racetrack will take place May 6. 

CHDN Price Action: Churchill Downs shares are down 2% to $247.65 in after-hours trading Wednesday.

Read Next: Analyst Ratings For Churchill Downs

For more on the sports betting landscape and what could be next for popular betting segments and legislation, tune in to the Benzinga Sports Betting Titans virtual event on May 24.

Photo via Shutterstock.