Churchill Downs Incorporated has announced more declines, exacerbated by a combination of COVID-19 linked closures and sporting postponements, continuing a common trend and compounding minor declines recorded earlier in the year.
CDI briefly halted operations at its property roster in March, with temporary employee furloughs declared as a direct consequence a short time later, but the firm has now resumed the operation of all gaming facilities in its portfolio except Calder Casino in Miami , Florida.
Revenue for the quarter decreased 61 percent from $477.4 m, as compared to the same time a year ago, to $185.1 m. Q2 net loss was $118.8 million compared to $107.1 million in 2019, with adjusted EBITDA dropping 86% to $30.1 million (2019: $215 million).
Revenue at the company’s flagship Churchill Downs Racetrack hit $30.2 million (2019: $193.1 million) as adjusted EBITDA fell from $121.9 million to $4.5 million, guided by the rescheduling of the 146th Kentucky Oaks and Derby, and a fall of $13.5 million at Derby City Gaming due to the temporary suspension of operations.
The gaming division of CDI saw sales and adjusted EBITDA posted as $37.3 m (2019: $177.8 m) and a loss of $2 m (2019: + $76.1 m), respectively, due to the temporary suspension of all property activities and the resulting revenue loss at each.
Increases were felt through the online wagering reporting segment of the company, as sales increased from $96 m to $121.6 m and adjusted EBITDA increased from $22.2 m to $38.8 m.
During the six-month period up to June 30, CDI ‘s sales came in at $438 m (2019: $742.8 m), net loss was announced as $142.2 compared to the $118.7 m adjusted EBITDA income of $85.4 m (2019: $289.6 m) during 2019.
Bill Carstanjen, chief executive officer of CDI noted: “Our teams have been excited to welcome our guests back to our properties with enhanced safety and social distancing protocols.
“Our team is looking forward to a safe and successful 146th Kentucky Derby on September 5th when we can come together to celebrate this time-honoured great American tradition.”