Revenue for the three months to 30 September was 49.4% ahead of Q3 last year. CDI says this total represents an all-time high for the third-quarter period.
While CDI experienced growth across all core businesses, gaming and live and historical racing drove Q3 success. Both segments reported significant rises in revenue during the quarter.
Gaming revenue nears $250m for CDI in Q3
Gaming remains CDI’s primary source of revenue, with this segment posting $244.9m in Q3 revenue. This was 31.7% higher than $185.9m in the same period last year.
CDI says this increase was driven by an additional $70.2m in revenue from the New York and Iowa properties acquired in the Peninsula Pacific Entertainment (P2E) transaction. CDI completed its $2.75bn purchase of P2E in November last year.
However, CDI notes this gain was partially offset by an $8.7m dip in Pennsylvania revenue. This, it says, is due to the decision not to renew a management agreement at Lady Luck. It also accounts for a $2.5m net decline from its other gaming properties.
CDI live and historical racing revenue rockets 120%
Turning to live and historical racing revenue hiked 120.2% to $225.5m. This, CDI says, was driven by $89.0m derived from Virginia properties acquired in the P2E deal.
CDI also accounts for a $14.7m increase from properties purchased in both the Ellis Park and Chasers transactions. The operator acquired Kentucky’s Ellis Park in September of 2022 and also took ownership of Chasers Poker Room in New Hampshire.
An additional $8.8m in revenue came from opening Turfway Park in Kentucky in September last year. A further $7.4m was attributed to the Derby City Gaming property and $4.3m the Oak Grove venue, both of which are also located in Kentucky.
These gains were partially offset by a $1.1m decrease at Churchill Downs Racetrack. This was due to moving July race days as part of the Churchill Downs Racetrack Spring Meet to Ellis Park.
CDI Q3 TwinSpires revenue edges up to $112m
Elsewhere, revenue from the TwinSpires business increased 4.7% to $107.4m. CDI puts this down to an additional $5.5m in revenue from the Exacta Systems purchase. The historical horse racing provider Exacta was acquired for $250.0m in August this year.
A further $900,000 was attributed to all other horse racing revenue, primarily from the B2B expansion strategy associated with United Tote totalisator fees. Growth was partially offset by a $1.4m decline in sports and casino revenue.
CDI also reported an additional $200,000 in other revenue from activities outside these core operations. Individual business results include inter-segmental revenue, with the total net revenue figure taking this into account.
Net profit tops $61m in Q3
Operating expenses in Q3 amounted to $460.2m, up 43.8% year-on-year. Gaming costs were the main outgoing at $175.6m, followed by live and historical racing on $158.2m.
CDI accounted for an additional $30.5m in finance costs. As such, pre-tax profit hit $81.8m in Q3, an increase of 11.4%. CDI paid $20.8m, resulting in a net profit of $61.0m, up 7.0%.
In addition, CDI said adjusted EBITDA in Q3 reached a new record-high of $218.2m, up 33.7% from last year.
Revenue set to surpass $2.00bn at CDI in full-year
Looking at year-to-date performance, revenue in the nine months to 30 September reached $1.90bn. This is 42.9% ahead of the same point last year and placed CDI on track to exceed $2.00bn in revenue for the full-year.
However, operating expenses were 41.5% higher at $1.44bn. Finance income amounted to $32.1m, meaning pre-tax profit hit $489.9m, a drop of 19.9%.
CDI paid $130.2m in tax, leaving a net profit of $359.7m, down 18.0% year-on-year. Adjusted EBITDA, however, was 38.1% higher for the period at $804.8m.
Original article: https://igamingbusiness.com/finance/quarterly-results/racing-gaming-growth-cdi-record-revenue-q3/
