The following is a summary of the Churchill Downs Incorporated (CHDN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Churchill Downs Incorporated reported Q1 net revenues of $591 million and record adjusted EBITDA of $243 million, showcasing strong performance across all segments.
The firm has completed a significant construction development at the Churchill Downs Racetrack, the new Paddock project, with a $200 million investment.
There has been a strong increase in their adjusted EBITDA due to the improved performances of their HRM properties in Virginia and Kentucky, increasing by nearly $13 million and $8.5 million respectively.
The company generated $242 million of free cash flow for the quarter, a 21% per share increase compared to the previous year.
The projected capital expenditure for the year is between $450 and $550 million.
Business Progress:
Churchill Downs has made progress with the development of significant venues and projects, including plans for a new project to enhance guest experience at the 2025 Derby, the opening of an additional Kentucky HRM venue and a Virginia HRM venue, and the expansion of the Big Rosie venture.
The acquirement of Exacta technology has significantly contributed to the improved performance of Virginia HRM venues, and the company intends to utilize this technology more extensively in Kentucky venues.
The company witnessed a successful grand opening of the Terre Haute casino in Indiana marked by impressive demand and performance.
Business deals with DraftKings and FanDuel are yielding success, with impacts soon to be clarified after the upcoming Derby Day.
HRM-based electronic table games are in progress, aiming at enhancing the long-term performance of HRM venues.
The company is analyzing several locations to deploy an additional 500-600 gaming machines in Virginia to commence by 2025.
More details: Churchill Downs IR
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