Churchill Downs Inc's Q3 2024: A Strong Performance

Churchill Downs Incorporated (CHDN) reported a robust set of results for the third quarter of 2024, with record net revenue, net income, and Adjusted EBITDA. The company's performance was driven by strong growth across its Live and Historical Racing, TwinSpires, and Gaming segments.

The Live and Historical Racing segment contributed significantly to the company's overall earnings. Revenue grew by 12% year-over-year, primarily due to the opening of new properties, such as Rosie's Emporia and The Rose Gaming Resort. Adjusted EBITDA increased by 15%, driven by growth at Virginia properties and the Northern Kentucky and Southwestern Kentucky HRM properties.

The TwinSpires segment also performed well, with revenue and Adjusted EBITDA increasing by 6% and 25% respectively. This growth was primarily attributable to market access agreements and the company's retail sports betting business. The Gaming segment saw a 10% increase in revenue, driven by the opening of the Terre Haute Casino Resort. However, regional gaming softness and increased competition offset some of this growth.

The opening of The Rose Gaming Resort in Dumfries, Virginia, is expected to have a positive impact on the company's future earnings. The resort features 1,650 historical racing machines and a 102-room hotel, providing a new revenue stream and enhancing the company's gaming portfolio.

Churchill Downs Inc maintained a net bank leverage of 4.0x and announced a $0.409 per share dividend to shareholders. This represents the fourteenth consecutive year of increased dividend per share, demonstrating the company's commitment to returning capital to shareholders.

In conclusion, Churchill Downs Inc's Q3 2024 earnings call highlighted the company's strong performance across its segments. The opening of new properties and strategic initiatives have contributed to the company's growth, and its commitment to returning capital to shareholders reflects its financial health and long-term prospects.