Churchill Downs Q2 2015 Earnings

ONLINE OPERATIONS PERFORM WELL FOR CHURCHILL DOWNS
 
US racing company says acquisition Big Fish Games is a key contributor.
 
The $885 million acquisition of Big Fish Games and an entry into the social casino market  has worked well for US racing group Churchill Downs Inc., which posted its second quarter results earlier this week.
 
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.