Churchill earnings up on Kentucky Derby week; Big Fish flops

Second quarter net revenue was up for Churchill Downs Inc., headquartered in Louisville, thanks to a strong Kentucky Derby week, more players on TwinSpires and gains at the racetrack company’s casinos even as its Big Fish online games division took a dive.

After the close of the market on Wednesday, Churchill reported second quarter profits of $78.3 million, up 12 percent or $4.81 per diluted share, up 17 percent from the same quarter of last year. For the first six months of the year, Churchill reported profits of $85.6 million, up 17.9 percent, or $5.18 per diluted share, up 21.3 percent from the same period of last year.

Churchill attributed the quarterly net revenue gains of $13.4 million to a $12.1 million increase from its TwinSpires advance-deposit wagering platform, a $9.2 million increase in racing (thanks to a good Kentucky Derby week), and a $3.9 million increase from its casinos. Partially offsetting these increases, according to Churchill, was a $12.6 million decrease in in-game purchases from Big Fish Games.

While Big Fish Games has become the biggest revenue-generating division of the company, recent quarters have shown growth flattening out.

Churchill Downs Inc. executives will discuss the results in a conference call with analysts Thursday at 9 a.m. that can be listened to at ir.churchilldownsincorporated.com/events.cfm.

Churchill also announced late Wednesday that Douglas C. Grissom, a managing director for Madison Dearborn Partners, has been appointed to the board for a term that will expire in 2020.

This story was originally published July 26, 2017 at 5:18 PM with the headline "Churchill earnings up on Kentucky Derby week; Big Fish flops."