Summary: After revealing Q3 earnings, Churchill Downs Inc. has reported they are doing well and ready for online gaming in Pennsylvania.
Churchill Downs Inc. is a major gaming company in the United States with their business in several areas across the nation. Based in Kentucky, the company operates in five states outside of their home area and is looking to get started soon in the online gambling industry in Pennsylvania. Yesterday, the company held a presentation providing information regarding their Q3 earnings, showing favorable numbers for their overall business dealings.
Report Info Shows Excellent Growth
The Q3 report showed all positive numbers when reviewing the earnings from the quarter in regard to the same time frame last year. Net revenue came in a $221.3 million which is a 12% increase from 2017. Net income came in at just over $56 million which is up a staggering amount when compared to the $16.7 million reported in Q3 last year.
The adjusted net income for the company came in at almost $22 million which is up considerably from the $13.6 million reported last year. The adjusted EBITDA came in at just over $62 million which is a 7% increase from last year.
The gains as far as net income is concerned came about due to moves by the company involving real estate. Several million was paid towards tax obligations which was a boost to the company. the operating income came down just a bit thanks to the Lady Luck Vicksburg termination fee of $5 million as well as certain expenses.
During the Q3, the company was quite busy. Churchill Downs acquired Ocean Downs, a casino and racetrack in Maryland, as well as liquidated their equity within the Saratoga Casino Holdings. The brand opened a sportsbook at two casinos in Mississippi, operating under the BetAmerica brand. In Kentucky, the company opened Derby City Gaming.
Also during the quarter, the company signed a definitive agreement to be able to acquire the majority share of the Rivers Casino Des Plaines. The Illinois casino is one owned by Rush Street Gaming. The percentage of the final ownership of the company will be based on decisions made by minority shareholders.
Ready for Pennsylvania Online Gambling
Churchill Downs is also ready to get started with online gambling in Pennsylvania. The state has steadily been working towards launching online casino and poker gaming with Churchill Downs set to take part. The company is working to finalize transactions with Eldorado Resorts and will then be operating the Lady Luck Nemacolin and the Presque Isle Downs casinos.
To get ready to enter the online gaming industry, Churchill Downs decided to create a partnership with SBTech, with the new agreement covering all formats of online gambling. Presque Isle Downs has already been approved for table games and slots online as the current owner, Eldorado Resorts, secured online gaming licensing as part of the acquisition deal.
The company is not interested in online poker but will be offering table games and slots. The company is also looking to offer sports betting in the state. The company will actually be focusing their efforts on sports betting, set to build from the exiting TwinSpires product and team of horse betting to offer even more to bettors.
It is expected that Churchill Downs will be launching sports betting as well as an online casino during the first quarter of next year. This will be reliant on current transactions closing in a timely manner.