Coinciding with an announcement of a series of multiyear capital projects at its flagship track of Churchill Downs, Churchill Downs Inc. reported record 2024 financial results Feb. 19, topped by a rewarding fourth quarter.
The Louisville, Ky.-based CDI, which owns Churchill Downs and other tracks and wagering and gaming holdings across the country, announced 2024 net revenue of $2.7 billion, up $272.6 million or 11%; net income attributable to CDI of $426.8 million, up $9.5 million or 2%; and adjusted earnings before interest, taxes, depreciation and amortization of $1.2 billion, up $135.3 million or 13%.
EBITDA is a key financial metric reflecting a company's profitability and cash flow.
CDI's fourth-quarter returns included net revenue of $624.2 million, up $63 million or 11%; net income attributable to CDI of $71.7 million, up $14.1 million or 24%; and adjusted EBITDA of $236.6 million, up $17.5 million or 8%.
However, CDI's fourth-quarter 2024 revenue decreased $2.6 million due to a $3.5 million decrease from CDI's sports betting business and a $1.3 million decrease in TwinSpires primarily due to market access and shifts in race days at other tracks. These decreases were partially offset by a $2.2 million increase from Exacta Systems due primarily to the growth of CDI's Virginia historical horse racing gaming venues.
CDI acquired Exacta Systems, a leading HHR technology provider, in 2023.
CDI also reported "regional gaming softness, increased competition, and higher labor and benefit expense" as a partner in Rivers Casino Des Plaines in Illinois, about 20 miles outside Chicago. That casino has been the remaining holding for CDI in the Northwest Chicago area after CDI shuttered nearby Arlington Park in 2021 and sold the property.
In its earnings release, CDI spotlighted a successful Kentucky Derby Week in 2024, which included a record all-sources handle, and the opening of Terre Haute Casino Resort in Indiana, The Rose Gaming Resort in Virginia, and Owensboro Racing & Gaming in Kentucky, which opened Feb. 12.
This past year, CDI's board of directors approved an annual cash dividend on the company's common stock of $0.409 per outstanding share, a 7% increase over the prior year. This marks the fourteenth consecutive year CDI has increased the dividend per share.
CDI estimates its project capital to be approximately $350 to $400 million in 2025. It plans to use its operating cash flows and existing revolving credit facility to fund its capital project expenditures.
CDI will host a conference call with its executives Feb. 20 to discuss its financial returns and capital projects.
