It used to be that Churchill Downs Inc. (CHDN) relied on race track revenues to power its quarterly earnings. That period for the company that hosts America’s “most exciting two minutes in sports,” the Kentucky Derby, has ended.
Reporting on the period that ended Dec. 31, 2013, Churchill Downs said gaming revenues more than doubled racing revenues, net of its online operations. Gaming revenue was $78,665,000 while racing brought in $38,382,000.
For the entire year, gaming revenue was nearly $300 million while racing revenue barely topped $274 million.
During the fourth quarter, the company said it lost $0.32 per share compared to last year’s profit of $0.14 per share. For the year, total earnings were $3.07 per share, less than the $3.33 per share earnings in 2012.
For the future, Churchill officials are counting on casino gambling being approved in Kentucky.
During a conference call, Bill Carstanjen, company COO, said they remained “heavily engaged” in the legislative battle for casinos and remained optimistic something will be done in the current session. However, Carstanjen said, “it’s getting to crunch time” for the lawmakers.
As for the recent Supreme Court ruling regarding Instant Racing, which involves betting on previously run races on devices that are considered by many to be equal to slot machines, Churchill officials said they were not interested at the present time.
“What we’ve said for our company is we want all the ambiguities resolved by the court before we would seriously look at it,” said Carstanjen.
SJM Holdings Ltd.
Despite a dwindling market share in Macau, SJM Holdings Ltd., identified as Asia’s largest casino company, reported its full-year profit rose 14 percent to $993 million in 2013. Analysts had expected earnings to be $977 million.
Revenues for the year rose 10 percent.
The growth followed similar patterns shown by other Macau casinos such as Sands China, Wynn Macao and MGM Macau.
SJM, founded by gaming kingpin Stanley Ho, operates 20 of Macau’s 35 casinos. Its market share dropped in 2013 from 28.7 percent to 24.8 percent.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].