Churchill Downs reels in profits thanks to Big Fish

Churchill Downs Inc generated growth in revenue and net profit of more than 40% in 2015 thanks to the successful integration of social gaming company Big Fish.

In its financial results for the year, the racetrack and casino operator said that net profit was up 40.5% year-on-year to $65.2 million (€59.1 million) while total revenue of $1.2 billion was 49% higher than 2014.

During the year, Big Fish, the company that Churchill purchased late in 2014, had turnover of $413.7 million, accounting for nearly all of the group's revenue growth year-over-year.

Churchill’s racing operations, which include its four racetracks, reported a profit of $248.6 million during the year, down 4.9% compared with 2014.

Twinspires.com, the company’s betting subsidiary, brought in revenue of $200.2 million, up 5.2%, with handle up 7.5%, while Churchill’s five casinos reported net profits of $332.3 million, slightly up on 2014.

“We delivered record net revenue and net cash flows from operations for the year,” Bill Carstanjen, Churchill’s chief executive, said.

“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.

“As we look forward to 2016, we will continue to position our company for long-term sustainable growth.”

Related article: Churchill Downs completes acquisition of Big Fish Games