Churchill Downs net revenue surges to $1.2 billion for year

Buoyed by its online games and casino business, Churchill Downs Inc. on Wednesday reported record revenue of more than $1.2 billion for the year, up 49 percent from the previous year.

For the fourth quarter, which ended Dec. 31, the Louisville-based racetrack, casino and games company reported comprehensive income of $7.4 million, or 43 cents per diluted share, compared to a loss of $13.9 million, or a loss of 81 cents per diluted share, in the same quarter of 2014.

For the full year, Churchill reported comprehensive income of $64.7 million, or $3.71 per diluted share, up 40 percent from $46.2 million, or $2.64 per diluted share, the previous year.

“These results are a reflection of the strength of the company’s operations and our disciplined approach to capital allocation and operational efficiency over time,” said CEO Bill Carstanjen. “As we look forward to 2016, we will continue to position our company for long-term sustainable growth.”

Carstanjen and Churchill executives will discuss the results with market analysts and investors in a conference call at 9 a.m. Thursday.

Fourth quarter revenue grew significantly compared to the prior year with the acquisition of Big Fish Games in November 2014, as well as growth in TwinSpires handle and increased wagering at some casinos. For the quarter, overall racing revenue slipped slightly despite a strong Churchill Downs fall meet and growth at Fair Grounds in New Orleans.

For the year, a record-setting Kentucky Oaks and Kentucky Derby week boosted racing results by $6 million in profits, the company said. And TwinSpires, the advance deposit wagering platform for racing, saw a 7.5 percent increase in handle, the company said.

But the big winner was Big Fish, which contributed $114 million in net revenue for the quarter and $414 million in net revenue for the year, the company said. The games division outstripped all other Churchill Downs divisions, including the casinos.

The games platform recorded more than $453 million in “bookings,” or in-app purchases, for 2015, up 35 percent from $336 million for the year before.

For the quarter, total bookings grew 27 percent, or $25.7 million, over the same period in 2014, driven by Gummy Drop!, as well as the late third quarter launch of Dungeon Boss.

This story was originally published February 24, 2016 at 5:17 PM with the headline "Churchill Downs net revenue surges to $1.2 billion for year."