Churchill Downs Inc. experienced an outstanding 2022 financial year, achieving unprecedented revenue of $1.8 billion, a remarkable 13% surge from the prior year. This exceptional performance was driven by the company’s most prosperous Kentucky Derby to date and key acquisitions made throughout the year.
The Kentucky Derby, considered the pinnacle of U.S. horse racing, witnessed unparalleled adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during its 148th running last May. Further amplifying this success, Churchill Downs Inc. finalized several strategic purchases, including acquiring all holdings of Peninsula Pacific Entertainment, encompassing properties such as Colonial Downs Racetrack and del Lago Resort & Casino. These acquisitions played a substantial role in the company’s record revenue expansion.
The company’s net earnings also reached an all-time peak of $4.394 billion in 2022, a staggering 76% leap from 2021. Moreover, adjusted EBITDA for 2022 hit a record $7.636 billion, a 22% rise from the preceding year.
Churchill Downs Inc. additionally announced a robust final quarter, with revenue climbing by $87 million compared to the corresponding period last year. This uptick was attributed to contributions from Virginia assets obtained through the Peninsula Pacific Entertainment deal. Adjusted EBITDA for the fourth quarter of 2022 saw a $13.4 million increase.
Churchill Downs Incorporated linked its latest expansion to the purchase of Peninsula Pacific Entertainment’s venues in Iowa and New York. Although income experienced a minor decline at the firm’s current seven gambling establishments spanning five states, Churchill Downs stressed that profits at Ocean Downs in Maryland more than compensated for the difference. The corporation also witnessed a $1.2 million rise in equity holdings during the final quarter of 2022.