What does Churchill Downs do and what are its main business segments?

What factors drove the changes in Churchill Downs's revenue and profit?

What is the market's earnings forecast for Churchill Downs next quarter?

What were the key takeaways from Churchill Downs’s earnings call?

What guidance did Churchill Downs's management provide for the next earnings period?

What is the revenue and EPS growth rate for Churchill Downs year over year?

Did Churchill Downs beat or miss consensus estimates last quarter?

What is Churchill Downs's gross profit margin?

- **Record Q1 Financials**: $643M revenue and $245M EBITDA, despite macro challenges.
- **Strategic Pauses**: $900M Derby project paused; $25-30M low-risk renovations completed.
- **Virginia Growth**: Rose resort and Richmond expansion driving HRM EBITDA, despite short-term softness.
- **Cash Flow Strength**: $234M free cash flow; $120M returned to shareholders via buybacks and dividend.
- **Focus on Discipline**: Capital allocation prioritizes long-term returns, with cautious approach to economic uncertainty.

**【Management Opening Remarks】**
- Sam Ullrich provided an overview of the earnings release and reminded participants of the risks associated with forward-looking statements. He emphasized the availability of financial information on the company’s website.

**【CEO Commentary】**
- **Record Q1 Results**: Revenue of $643 million and adjusted EBITDA of $245 million, despite challenges like weather, economic uncertainty, and a leap year. 
- **Owensboro HRM Success**: 600 HRMs opened below budget, on track for strong returns.
- **Kentucky Derby Investments**: Paused a $900 million multiyear project due to economic uncertainty but reaffirmed commitment to long-term growth. Completed $25-30 million renovations to Finish Line Suites and Mansion for 2026.
- **Virginia Expansion**: Progress at Rose gaming resort and Richmond HRM expansion, with 400 new HRMs expected by Memorial Day.
- **Exacta Technology**: Improved efficiency in Virginia and Kentucky HRMs, with B2B growth in New Hampshire and Wyoming.

**【CFO Financial Commentary】**
- **Financial Highlights**: Live and Historical Racing segment revenue up 11% YoY, driven by new venues. Virginia HRM EBITDA down 3% due to weather, competition, and tax changes, but 52% margin maintained. Wagering Services & Solutions EBITDA grew 4%.
- **Capital Management**: $234 million free cash flow in Q1. Project capital reduced to $250-290 million due to paused Derby project. Share buybacks of $120 million (including dividend) returned to shareholders.
- **Leverage**: Bank covenant net leverage at 4.0x, expected to decline to 3.6-3.8x by 2026.

**【Q&A Highlights】**
- **Consumer Softness**: Lower-tier unrated play impacted regional gaming, but upper-tier engagement remained strong.
- **Derby 2025 Outlook**: Comparable to 2024’s record performance, with focus on high-end hospitality upgrades.
- **Electronic Table Games**: Regulatory and tax challenges, but cautious rollout planned for 2025.
- **Capital Allocation**: Prioritized disciplined investments and share buybacks, with flexibility to adapt to macro conditions.


Churchill Downs (CHDN)-24 Apr 25-2025 Q1 Earnings call transcript

- **Record Growth**: 2024 net revenue +11%, EBITDA +13%, fueled by Kentucky Derby expansion and Virginia HRM success. 
- **$1.3B+ Derby Transformation**: 3-phase project to add 20% premium seating by 2028, targeting 10-15% ROI. 
- **Rose Gaming Momentum**: Virginia resort on track for 5-year payback; 4x larger customer base supports long-term growth. 
- **Strong Capital Management**: $688M free cash flow in 2024; 2025 capex focused on high-return projects. 
- **Gray Market Progress**: Kentucky near full enforcement; Virginia seeing sustained decline in illegal activity. 
- **Exacta Expansion**: Technology platform poised to benefit from potential HRM legalization in California. 


**【CEO Business Overview】**
- **Record Financial Performance**: 2024 net revenue and adjusted EBITDA grew 11% and 13% YoY, driven by all three business segments (Kentucky Derby, HRM, and Gaming). 
- **Kentucky Derby Expansion**: Announced $1.3B+ multi-year projects to transform 3 key areas: 
  1. **Sky Terrace Renovation**: 13,300 new premium seats with 5-story building (completed by 2028). 
  2. **Conservatory Project**: 7,000+ premium seats with 36 suites (Phase 1 opens 2026). 
  3. **Infield General Admission**: 3 new permanent buildings for enhanced amenities. 
- **HRM Growth**: Virginia HRM venues contributed 20% of $1.2B adjusted EBITDA. Rose Gaming Resort (opened Nov 2024) on track for sustained growth despite delayed marketing due to elections. 
- **Kentucky Expansion**: Owensboro HRM opened below budget in Feb 2025, pacing ahead of expectations. 
- **2025 Outlook**: Kentucky Derby 151 ticket revenue pacing ahead of 2024 levels, with full sellout anticipated. 

**【CFO Financial Highlights】**
- **2024 Results**: 
  - Net revenue: $2.7B (11% YoY). 
  - Adjusted EBITDA: $1.2B (13% YoY). 
  - Free cash flow: $688M ($9.22/shr, +33% YoY). 
- **2025 Capital Plan**: 
  - Projected capex: $350-400M (includes $100M for Kentucky Derby projects). 
  - Leverage target: <4.0x by end-2025, declining further in 2026. 
  - Share buybacks + dividends: $218M returned to shareholders in 2024. 
- **Segment Performance**: 
  - HRM: 20% EBITDA contribution. 
  - Gaming: 4% YoY growth from Terre Haute casino. 
  - Wagering: $34M EBITDA growth from Exacta B2B business. 

**【Q&A Key Takeaways】**
- **Rose Gaming Resort**: 
  - Early performance strong despite challenging launch timing. 
  - 5-year payback target achievable with Virginia's 4x larger customer base. 
- **Kentucky Derby Projects**: 
  - No material disruption to 2025 event; construction sequenced to minimize guest impact. 
  - Historical 10-15% ROI on similar projects. 
- **HRM Market**: 
  - Virginia gray market enforcement progressing; Kentucky near full enforcement. 
  - Exacta technology poised to benefit from potential HRM expansion in California. 
- **Inflation Response**: 
  - Pricing power in premium seating, hospitality, and sponsorships offsetting wage growth. 
  - No discernible impact of recent wage reacceleration on business trends. 


Churchill Downs (CHDN)-20 Feb 25-2024 Q4 Earnings call transcript

Churchill Downs (CHDN)-24 Oct 24-2024 Q3 Earnings call transcript

Churchill Downs (CHDN)-25 Jul 24-2024 Q2 Earnings call transcript

Churchill Downs (CHDN)-25 Apr 24-2024 Q1 Earnings call transcript

Churchill Downs (CHDN)-26 Oct 23-2023 Q3 Earnings call transcript

Churchill Downs (CHDN)-27 Jul 23-2023 Q2 Earnings call transcript

Churchill Downs (CHDN)-27 Apr 23-2023 Q1 Earnings call transcript

Churchill Downs (CHDN)-23 Feb 23-2022 Q4 Earnings call transcript

Churchill Downs (CHDN)-27 Oct 22-2022 Q3 Earnings call transcript

Churchill Downs (CHDN)-28 Jul 22-2022 Q2 Earnings call transcript

Churchill Downs (CHDN)-28 Apr 22-2022 Q1 Earnings call transcript

Churchill Downs (CHDN)-24 Feb 22-2021 Q4 Earnings call transcript

Churchill Downs (CHDN)-28 Oct 21-2021 Q3 Earnings call transcript

Churchill Downs (CHDN)-31 Jul 21-2021 Q2 Earnings call transcript

Churchill Downs (CHDN)-22 Apr 21-2021 Q1 Earnings call transcript

Churchill Downs (CHDN)-28 Feb 21-2020 Q4 Earnings call transcript

Churchill Downs (CHDN)-29 Oct 20-2020 Q3 Earnings call transcript

Churchill Downs (CHDN)-1 Aug 20-2020 Q2 Earnings call transcript

Churchill Downs (CHDN)-30 Apr 20-2020 Q1 Earnings call transcript

Churchill Downs (CHDN)-27 Feb 20-2019 Q4 Earnings call transcript

Churchill Downs (CHDN)-1 Nov 19-2019 Q3 Earnings call transcript

Churchill Downs (CHDN)-3 Aug 19-2019 Q2 Earnings call transcript

Churchill Downs (CHDN)-25 Apr 19-2019 Q1 Earnings call transcript

Churchill Downs (CHDN)-28 Feb 19-2018 Q4 Earnings call transcript

Churchill Downs (CHDN)-1 Nov 18-2018 Q3 Earnings call transcript

Churchill Downs (CHDN)-4 Aug 18-2018 Q2 Earnings call transcript

Churchill Downs (CHDN)-26 Apr 18-2018 Q1 Earnings call transcript

Churchill Downs (CHDN)-1 Mar 18-2017 Q4 Earnings call transcript

Churchill Downs (CHDN)-4 Nov 17-2017 Q3 Earnings call transcript

CHDN

CHDN fundamentals

Earnings Call

You can ask Aime