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LOUISVILLE - Churchill Downs Incorporated (NASDAQ:CHDN) reported first quarter earnings that fell short of analyst expectations, sending shares down 3.8% in after-hours trading.
The racing, gaming and online wagering company posted adjusted earnings per share of $1.02, missing the consensus estimate of $1.11. Revenue came in at $642.6 million, up 9% YoY but below analyst projections of $649.69 million.
Despite the earnings miss, Churchill Downs achieved record quarterly revenue, driven by growth in its Live and Historical Racing segment. The company’s Virginia historical racing machine (HRM) venues saw an $18.2 million revenue increase, primarily due to the November 2024 opening of The Rose Gaming Resort in Northern Virginia. Kentucky HRM revenue rose $8.9 million, boosted by the February 2025 launch of Owensboro Racing and Gaming.
"We delivered record revenue in the first quarter, demonstrating the strength of our diversified portfolio," said CEO Bill Carstanjen. "While we faced some headwinds from weather impacts and regional gaming softness, our strategic investments continue to drive growth."
The company’s Gaming segment revenue increased $24 million to $267.2 million, largely due to the April 2024 opening of Terre Haute Casino (EPA:CASP) Resort. However, this was partially offset by declines at other properties amid regional gaming weakness and increased competition.
Churchill Downs maintained its capital return program, repurchasing $89.4 million of shares in Q1. The board also approved a new $500 million share repurchase authorization in March.
Looking ahead, management did not provide specific guidance but noted ongoing initiatives to enhance the Kentucky Derby experience and expand its gaming operations.
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