Churchill Downs struggles to mitigate COVID-19 losses as Q2 revenue down 61%

Churchill Downs Incorporated reported losses for Q2 2020. The group’s net revenue stands at $185.1m, a 61% decline compared to the previous year with $477.4m. Net loss was $118.8m, a massive drop from the net income of $107.1m for the same period last year. Adjusted net loss was $21.1m against adjusted net income of $115.0m in 2019. 

Adjusted EBITDA dropped by 86%, bringing in $30.1m. The group also praised strong performance from wholly-owned regional casino properties, where net revenue increased by 9% after re-opening, with 38% in Adjusted EBITDA. 

TwinSpires, the group’s betting platform, saw its adjusted EBITDA reach $18.3m, with handle growth standing at $100.7m. It’s 22% higher than the previous year, despite the rescheduling of the 146th Kentucky Oaks and Derby from May to September. The group has re-opened all of its venues, aside from Calder Casino in Florida. 

The group had to take additional measures to ensure the health and safety of the staff and guests during the pandemic, which took a toll on the finances, resulting in furloughed employees and reduction of salary for the remaining staff. 

Chief executive officer Bill Carstanjen said, “Our teams have been excited to welcome our guests back to our properties with enhanced safety and social distancing protocols.” He also added the group is looking forward to welcoming guests for the derby event on September 5.   

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here