LOUISVILLE - Churchill Downs (NASDAQ:CHDN) Incorporated (NASDAQ:CHDN) has announced the promotion of Michael Lilly to President of TwinSpires Horse Racing, the company's legal online horse betting platform and the official wagering partner of the Kentucky Derby. Lilly, who has over two decades of financial and leadership experience, will oversee the strategy and operations of TwinSpires within CDI's portfolio.
Lilly's ascent in CDI began in 2018 when he joined as the Senior Director of Finance at Arlington Racecourse. His career trajectory within the company saw him become Vice President of Finance of CDI's TwinSpires Segment in 2020, and later Vice President of Finance and Operations of the same segment in 2022. His prior experience includes various financial leadership positions in the Chicago area.
With a Bachelor of Arts from Northern Illinois University and a Master of Business Administration from DePaul University, Lilly's educational background complements his extensive professional experience.
Churchill Downs Incorporated, known for the prestigious Kentucky Derby, has been a staple in entertainment for over 150 years. Based in Louisville, Kentucky, the company has diversified its offerings to include live and historical racing entertainment venues, the expansion of TwinSpires, and the operation and development of regional casino gaming properties.
The announcement comes as CDI continues to focus on the growth and development of its TwinSpires brand, which has become a significant part of the company's revenue stream. The choice of Lilly for the president role reflects CDI's commitment to leadership continuity and strategic growth in its online wagering business.
This leadership change is expected to maintain the momentum of TwinSpires in the competitive online betting market. As the industry continues to evolve, CDI appears poised to capitalize on the digital transformation of betting and gaming experiences.
The information in this article is based on a press release statement from Churchill Downs Incorporated.
In other recent news, Churchill Downs Incorporated reported higher-than-expected revenue and EBITDA for the recent quarter, with revenue reaching $591 million and EBITDA at $242.5 million. The company's strong performance in its Live and Historical Racing segment was particularly noteworthy, reporting $100.8 million in revenue.
In addition, the company opened the Terre Haute Casino Resort in Indiana, a $290 million project featuring a casino floor with 1,000 slot machines, 36 table games, and a state-of-the-art sportsbook.
Analysts from Mizuho Securities and Wells Fargo have both expressed confidence in the company's growth prospects. Mizuho adjusted its price target for Churchill Downs shares to $143.00, maintaining a 'Buy' rating.
Wells Fargo upgraded the stock from Equal Weight to Overweight, increasing the price target to $141. This upgrade was influenced by several near-term catalysts, including a favorable first-quarter earnings report, robust EBITDA from the Kentucky Derby, and the anticipated ramp-up of operations in Terre Haute.
These are among the latest developments for Churchill Downs. The company's strategic initiatives, such as the Dumfries project in Virginia and the acquisition of Exacta, are expected to provide high EBITDA returns and B2B technology integration opportunities.
The company's expansion in Virginia and partnerships with real money gaming companies are expected to drive revenue growth. Still, the company's growth strategy is closely tied to legislative changes, particularly the legalization and regulation of HRM in various states, introducing an element of unpredictability that could hinder expansion plans.
InvestingPro Insights
Churchill Downs Incorporated (NASDAQ:CHDN) showcases a robust financial profile, as evidenced by its significant revenue growth over the last twelve months as of Q1 2024. The company's revenue increased by 24.33%, underlining its successful diversification and expansion strategies. This growth trajectory is further reinforced by the company's impressive EBITDA growth of 32.59% during the same period, indicating strong operational efficiency and profitability.
Investors considering CDI's stock will find the company's long-standing commitment to shareholder returns compelling. An InvestingPro Tip highlights that CDI has raised its dividend for 13 consecutive years, signaling confidence in its financial health and a dedication to delivering value to its shareholders.
Moreover, the company has maintained dividend payments for an impressive 50 consecutive years, which is a testament to its financial stability and prudent management. It's worth noting that while the dividend yield as of the last recorded date stands at 0.27%, the company's dividend growth over the last twelve months was 7.0%, reflecting a consistent increase in shareholder returns.
Despite a high earnings multiple with a P/E ratio of 30.7 and trading at a high Price / Book multiple of 12.47, CDI's stock is trading near its 52-week high, which could indicate market confidence in its future prospects. The company's market capitalization stands at a solid 10.31 billion USD, underscoring its significant presence in the industry.
For readers seeking more in-depth analysis, additional InvestingPro Tips reveal that analysts have revised their earnings estimates downwards for the upcoming period, which could be a factor to monitor closely. Moreover, the company's short-term obligations exceeding its liquid assets may warrant attention from investors who prioritize liquidity.
For those interested in exploring these insights further, there are 11 additional tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/CHDN. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with valuable information and analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.