A powerful quarter of pari-mutuel wagering on horse racing in addition to improved revenues from sports activities wagering helped Churchill Downs Inc.’s TwinSpires to a powerful third quarter as the corporate reported constructive financials Oct. 27.
For the third quarter of 2021, CDI reported $156.1 million in adjusted earnings, up 28% in contrast with the third quarter of 2020. That enchancment was pushed by file third quarter web income for the corporate of $393 million, in contrast with $337.8 million within the third quarter of 2020.
These numbers are particularly robust for CDI when you think about that the Kentucky Derby Introduced by Woodford Reserve (G1) was contested within the third quarter of 2020, because it was moved to the primary Saturday of September due to the COVID-19 pandemic. This 12 months the Derby returned to its standard second quarter slot on the primary Saturday in Might, leading to these financials being reported final quarter.
With the Derby within the third quarter in 2020, in its third quarter report CDI opted to match TwinSpires’ horse racing deal with to the third quarter of 2019 reasonably than final 12 months. It reported a $113.2 million improve in deal with—up 30.7%. CDI attributed the rise to a shift in wagering from brick-and-mortar areas to on-line wagering.
TwinSpires noticed web income from horse racing improve $30.6 million within the third quarter of 2021 in contrast with the identical quarter of 2019. Adjusted earnings have been up 56%. Whereas the comparability is considerably impacted by the timing of the Derby, CDI reported adjusted earnings of $20.7 million for TwinSpires within the third quarter of 2021, in contrast with $32.6 million for final 12 months’s third quarter.
The corporate continues to spend money on its TwinSpires sports activities wagering on-line platform and brick and mortar areas. With elevated advertising and marketing and promotional actions of TwinSpires sports activities wagering through the quarter, losses elevated $6.2 million.
It was a busy quarter for CDI because the company announced the sale of the 326-acre Arlington International Racecourse property for $197.2 million to the Chicago Bears. Additionally within the quarter, CDI introduced plans to open a brand new 43,000 sq. foot historic horse racing venue in downtown Louisville, Ky. Plans name for the Derby City Gaming venue to supply 500 HHR machines.
Churchill reported robust adjusted earnings from the ultimate race meet at Arlington. The corporate mentioned for the third quarter the meet drove a $5.9 million improve in adjusted earnings because of elevated income from deal with and admissions.
Throughout the quarter the corporate’s board of administrators licensed a inventory repurchase plan of as much as $500 million. Within the third quarter the corporate repurchased 245,132 shares of its widespread inventory (underneath the 2018 Inventory Repurchase Program) at a complete value of $49.2 million ($199.89 a share). The corporate additionally introduced a $0.667 per share annual dividend payable to shareholders Jan. 7, 2022.
