Powered by substantial growth in casino earnings, Churchill Downs reported net revenue at $477.4 million for the second quarter of 2019.
That’s an increase of 25.8% over last year’s net revenue of $379.4 million. The solid increase in revenue was due in large part to the three newly acquired casinos the company purchased last year as well as the associated increase in overall gaming revenue.
Churchill Downs acquired three new casinos last year, and each site contributed heavily to the company meeting the high expectations placed upon the company by stock analysts for the recent quarter.
Presque Isle in Erie, Pennsylvania, was the leader of the pack, contributing $37.1 million in net revenue for the second quarter of 2019.
Ocean Downs in Berlin, Maryland, came in second place by reporting $21.9 million in net revenue over the same timespan. Lady Luck Nemacolin in Farmington, Pennsylvania, rounded out that group with $8.3 million in net revenue.
Those numbers were in line with the stalwart industry estimates released before the operator made things official by reporting revenue growth to investors over the last quarter during the latest earnings call.
In addition to the new casinos, Churchill Downs’ five other casinos also contributed to the net revenue growth over the quarter. In total, those five casinos made moderate gains, from $107.8 million to $110.3 million overall.
The pack was led by Fair Grounds and VSI in New Orleans, with $30.9 million in net revenue. Oxford Casino in Maine also fared well at $26.3 million.
Overall, 2019 has been a banner year for Churchill Downs. The company reported total net revenue of $742.8 million over the first sixth months of 2019. That’s a sharp increase from the $568.7 million reported last year over the same timeframe.
Additionally, revenue from the Churchill Downs Racetrack in Kentucky increased over the last six months from $156.9 million to $203.2 million, while other gaming revenue increased from $219.6 million to a whopping $346.4 million.
The company seems poised to maximize profits at its namesake racetrack location for years to come.
According to conference call reports, Chief Executive Officer Bill Carstanjen indicated during the company’s quarterly earnings call on Thursday that the company would be adding a hotel to Churchill Downs Racetrack itself, along with a historical race wagering facility and additional premium seating for visitors.
Those moves will be in addition to the recently added Derby City Gaming facility which opened in September 2018 and reported $39.9 million in net revenue over the last two quarters.