Online operations perform well for Churchill Downs

CEO Bill Carstanjen singled out the online and mobile operations of the group for praise as the fastest growing division which has become a key contributor to company results.

Online operations generated revenue up 40 percent y-o-y at $112.7 million, with social casino action delivering $48.2 million; free-play casual games $36.5 million and premium games $28 million.

Social casino average paying users rose 24 percent and average revenue per paying user rose 6 percent, whilst free-play casual average player spend rose 173 percent, although premium deposits fell 22 percent – a consequence of a shift to mobile and free-play by players, the company explained.

Online race betting site Twin Spires delivered a 6 percent rise in revenue to $60.7 million, with earnings up 19 percent to $16.7 million on betting handle of $289.4 million – a rise of almost 9 percent.

By comparison, terrestrial horse racing results lagged at a handle of $557.8 million – a y-o-y decline of 16 percent. However, overall terrestrial racing earnings rose 9 percent to $85.2 million.

Churchill’s land casino operations reported a modest 2 percent rise in revenues to $83.8 million, with earnings up 7 percent at $28 million.

CDI’s total revenue for Q2-2015 was up 35 percent y-o-y at $409.2 million, with earnings up 34 percent to a record $157.2 million, but net earnings declined 4 percent due to acquisition costs.