Churchill Downs Incorporated (CDI) is a leading U.S. entertainment enterprise focused on horse racing, online wagering, and general gaming activities. Its extensive operations are categorized into three main divisions: Live and Historical Racing, TwinSpires, and Gaming. As of December 31, 2021, CDI's portfolio included three pari-mutuel gaming venues in Kentucky, collectively featuring approximately 3,050 historical racing machines. The company also operates TwinSpires, a comprehensive digital platform offering betting on horse races, sports, and iGaming. Furthermore, CDI manages nine brick-and-mortar sportsbooks and runs casino gaming across eight states, housing around 11,000 slot machines and video lottery terminals, in addition to 200 table games. Beyond these core ventures, Churchill Downs Incorporated delivers streaming video of live horse races and replays, along with a wide array of racing and handicapping information. It also oversees the Bloodstock Research Information Services (BRIS) platform, a valuable source for horse racing statistical data. The company is additionally engaged in designing and deploying pari-mutuel wagering systems for racetracks, off-track betting facilities, and various other wagering enterprises. Established in 1875, Churchill Downs Incorporated is headquartered in Louisville, Kentucky.
Q3 beat on net income with record revenue, plus a new $750M buyback and 7% dividend hike, offset by Virginia competitive/tax headwinds and recent analyst price-target cuts; net near-term bias modestly positive on capital returns but capped by Virginia overhang.
CHDN reported record Q3 net revenue of $696M (+2%) and net income of $80M ($1.15 diluted EPS) vs $0.54 prior year, with Adjusted EBITDA of $264M (+1%). The EPS beat versus prior year and record top line should support sentiment, though Live and Historical Racing EBITDA fell $5M on Virginia weakness, tempering the upside.
Churchill Downs Press ReleaseThe Board approved a new $750M repurchase program (inclusive of $306M remaining under the prior authorization). A materially larger buyback signals management confidence and provides a demand backstop, a supportive near-term catalyst for the stock.
Churchill Downs Press ReleaseThe Board declared a $0.469/share annual dividend, a 7% increase and the 16th consecutive annual raise, payable January 5, 2027. The hike reinforces capital-return commitment and is modestly supportive of sentiment.
Churchill Downs Press ReleaseStifel, Susquehanna, Truist and Mizuho cut price targets by 4%-20% this month, with Mizuho lowering its target to $125 from $157 (Outperform maintained) on Virginia gaming-supply headwinds and a reduced FY EBITDA estimate. Continued target cuts create near-term negative overhang despite bullish ratings.
Yahoo FinanceCentral Virginia HRM venues saw an 18.9% revenue decline amid competition from Live Petersburg, and a new live-race-day tax added ~$5M expense in Q3. Persistent Virginia deterioration is the key bear case and could weigh on guidance commentary and sentiment.
Churchill Downs Press ReleaseCHDN announced the Thoroughbred Championship Series with NYRA beginning with the 2027 Kentucky Oaks and Kentucky Derby, and completed the acquisition of 49% of United Tote from NYRA with an extended tote services agreement through 2035. The partnership expands the flagship event franchise and is modestly positive for long-term growth narrative.
Churchill Downs Press ReleaseCHDN received approval to relocate and expand its Rosie's Collinsville HRM venue to 150 machines in Henry County, Virginia. The expansion supports growth in a challenged state segment and is a modest positive, though impact is longer-dated.
Churchill Downs IRCHDN closed a new $500M Term Loan B due 2033 at SOFR+175bps and extended its revolver/Term Loan A maturity to 2031 while eliminating the credit spread adjustment, and redeemed 2027 notes. Lower-cost, longer-dated debt modestly improves financial flexibility and is mildly supportive.
Churchill Downs Press Release