Overall, the net revenue reported by Churchill Downs Incorporated (CDI) for the year ended December 31, 2022, hit $1.81 billion, a new record for the company. This result, when compared to the $1.6 billion figure reported in 2021, marked an increase of 13%.
Not unexpectedly, the net income reported by CDI in 2022 increased as well. The company hit a record net income of $439.4 million in 2022. When compared to the $249.1 million reported for the prior year period, the result from 2022 marked an increase of 76%. Similarly, adjusted EBITDA in 2022 also set a record hitting $763.6 million. When compared to the $627 million result reported in 2021, the latest result reveals that adjusted EBITDA grew by 22%.
A breakdown provided by CDI revealed that in 2022, the revenue from live and historical racing increased significantly. Back in 2021, the net revenue from that segment halted at $409.1 million, while in 2022, soared to $614.6 million. The net revenue from gaming also increased hitting $755.9, up from the $695.4 million result from 2021.
In contrast to the increase, the net revenue from TwinSpires decreased by nearly 4% to $436.4 million. The revenue reported from other operations also decreased, halting at $2.9 million.
It is important to mention that CDI acknowledged that the lifting of COVID-related restrictions impacted positively the company’s performance. In fact, it said that the 2022 Kentucky Derby was held without the restrictions that were in place the previous year.
CDI Highlights Multiple Achievements, Posts Strong Q4 Revenue
Besides its full year 2022 results, CDI acknowledged multiple strategic achievements completed during the period. Back in November, the company closed the acquisition of Peninsula Pacific Entertainment LLC in a deal with a $2.75 billion price tag.
Before that, back in September, CDI completed the acquisition of Chasers Poker Room located in Salem, New Hampshire. This strategic move boosted the company’s plan for further expansion.
Again in September, CDI closed the takeover of Ellis Park Racing and Gaming. The acquisition included rights for a new historic racing machine (HRM) entertainment venue in Owensboro, Kentucky.
Earlier in 2022, CDI closed the sale of Calder land in June, while in February, it closed the sale of its Arlington Heights, Illinois property in a deal of nearly $200 million to the Chicago Bears.
In addition to its 2022 revenue, CDI released data regarding its performance for the fourth quarter. In Q4, 2022, the company reported net revenue of $480.1 million, marking a strong growth when compared to the corresponding period in 2021 when the revenue halted at $364.8 million. Adjusted EBITDA grew in Q4, 2022 as well, hitting $180.7 million.