Churchill Downs Inc. on Wednesday reported record net revenues of $279.8 million for the third quarter thanks to the continued growth of online game division Big Fish Games, acquired in December.
"We delivered record revenues and record adjusted EBITDA largely driven by the contribution from our Big Fish Games division," says Bill Carstanjen, CEO of Louisville-based Churchill Downs Inc.
EBITDA is earnings before interest, taxes, depreciation, and amortization.
For the quarter, Churchill reported profits of $4.2 million, or 24 cents per diluted share, up about 20 percent over the same period in 2014. Year-to-date, Churchill reported earnings of nearly $57.7 million, or $3.26 a diluted share, down 4 percent compared to the same period last year.
Revenue for the quarter was up 61 percent from the same period in 2014, largely from Big Fish. TwinSpires, the company's advance deposit wagering platform, also showed organic growth of 9 percent.
Churchill Downs officials will discuss the results with stock analysts at 9 a.m. Thursday. The call can be at Churchilldownsincorporated.com.
Seattle-based Big Fish Games reported an 34 percent increase in "bookings" or in-app purchases, to $114.4 million in the quarter. Big Fish contributed revenue of $103.5 million and adjusted EBITDA of $33.3 million.
While Big Fish's casino game division had an overall 8 percent increase, the free-to-play casual division saw a 158 percent increase in average paying users, driven by continuing success of Gummy Drop! and the successful launch of Dungeon Boss.
Meanwhile, revenue for Churchill's bricks-and-mortar casinos held steady at $82.7 million for the quarter.
Total handle for TwinSpires was $245.5 million, up 9 percent, with revenue of $50.3 million for the quarter.
Handle on live racing fell 16 percent for the quarter, to $238 million, with revenue of $38.9 million, down 5 percent. The drop was primarily the result of declines at the Arlington International racetrack outside Chicago.