Q2 2024 Churchill Downs Inc Earnings Call Transcript
Key Points
- Churchill Downs Inc (CHDN) reported all-time record net revenue of $891 million and adjusted EBITDA of $445 million for Q2 2024.
- The 150th Kentucky Derby generated significant growth in ticketing, sponsorship revenue, and record wagering, contributing to a new all-time record for Derby Week adjusted EBITDA.
- The company is on track with several high-growth, high-margin investments, including new HRM venues in Kentucky, Virginia, and New Hampshire.
- The acquisition of Exacta has improved performance and margins for HRM venues, and the company is exploring further expansion opportunities both domestically and internationally.
- Churchill Downs Inc (CHDN) has a strong pipeline of growth opportunities in both brick-and-mortar and technology-related businesses, supported by a solid balance sheet.
- The Derby City Gaming property in downtown Louisville has ramped slower than expected, partly due to the local market's slower rebound from COVID-19.
- There are ongoing challenges with illegal gaming products in Kentucky and Virginia, requiring vigilance and communication with local authorities.
- The company faces some constraints in Virginia regarding the deployment of HRMs, including the need for additional capital expenditure and strategic planning.
- The labor market remains tight, with wage inflation being a concern, although it is being managed effectively.
- The Terra Haute property, while performing well initially, is still in its ramp-up stage and has not yet reached maturity, particularly in attracting visitors from Indianapolis.
Please stand by for streaming text.
Good day, ladies and gentlemen, and welcome to the Churchill Downs, Incorporated 2024 second quarter earnings conference call. At this time, all participants are in a listen only mode. Later, we'll conduct a question-and-answer session and instructions will be given. At that time, w e ask all questions and answer participants to please limit themselves to one question.
I would now like to introduce your host for today's conference, Mr. Sam Ullrich, Vice President, Investor Relations.
Thank you, Andrew. Good morning, and welcome to our second quarter 2024 earnings conference call. After company's prepared remarks, we will open the call for your questions. The company's 2024 second quarter business results were released yesterday afternoon. A copy of this release announcing results and other financial and statistical information about the period to be presented in this conference call, including information
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