Impairment expenses push CDI to loss in Q1
Churchill Downs Incorporated (CDI) has posted a net loss of $23.4m (£18.7m/€21.5m) for the first quarter, primarily due to write-downs of business assets.
Net revenue in the three months to March 31, 2020, amounted to $252.9m, down 4.7% year-on-year from $265.4m in the corresponding period in 2019.
CDI saw the biggest drop within its gaming business, with revenue down 12.4% to $149.1m, as the operator was hit by the closure of its gaming properties as a result of the novel coronavirus (Covid-19) outbreak.
However, in contrast, online wagering revenue was up 6.8% to $67.7m, mainly due to a $3.7m increase in revenue from its TwinSpires business. The TwinSpires handle climbed 8.3% year-on-year and active players jumped 11.6%, despite the impact of coronavirus in the latter part of the quarter.
Online sports betting and igaming net revenues also climbed $600,000, with CDI putting this down to a full quarter of igaming results in Pennsylvania and New Jersey. That said, sports betting revenue was impacted by the suspension of all major US and international sporting events due to Covid-19.
Elsewhere, CDI’s Churchill Downs business saw revenue climb 11.2% to $23.8m, boosted by a $2.9m increase from Derby City Gaming’s continued growth prior to the temporary closure of the facility. However, the temporary suspension of simulcasting operations at Churchill Downs knocked $500,000 off the total.
Read the full story on iGB North America.