Kentucky-headquartered gambling operator Churchill Downs Incorporated published on Wednesday its financial results for both the fourth quarter and full year ended December 31, 2015. Annual net revenue amounted to $1.2 billion, up the record 49% as compared to the figure posted for 2014.
Fourth-quarter net revenue amounted to $272.4 million, up from $168.1 million for the previous year. The company delivered adjusted EBITDA of $59.5 million for the period, compared to $28.5 million posted for the same three months of 2014. Net income amounted to $7.5 million. In comparison, net loss of $13.8 million was generated in the fourth quarter of 2014.
The significant increases in net revenue, adjusted EBITDA, and net income were mainly attributed to the acquisition of popular gaming developer Big Fish Games. Churchill Downs bought the Seattle-based gaming studio in December 2014. The gambling operator also said that the growth in net revenue was due to the increased handle of its online betting brand TwinSpires as well as an organic growth at its Oxford Casino in Maine.
Full-year adjusted EBITDA totaled $335.6 million, up from the $202.5 million reported for the previous year. Net income for the twelve months ended December 31, 2015 was $65.2 million compared to $46.4 million for the same period of 2014.
The record increases in annual net revenue, adjusted EBITDA, and net income were attributed mainly to the acquisition of Big Fish Games. Churchill Downs further noted that the growth in net revenue was also the result from the record-breaking Kentucky Oaks and Derby weeks, the increase in TwinSpires handle, and organic growth at the Maine-based Oxford Casino.
Quarterly net revenue from horse racing activities amounted to $29.9 million as compared to $30.4 million reported for the same three months of 2014. Net revenue totaled $248.6 million for the year ended December 31, 2015 compared to $261.5 million in 2014.
Casino operations generated quarterly net revenue of $80.4 million, up from $78.5 million for the three months ended December 31, 2014. Full-year net revenue amounted to $332.3 million compared to $328.3 million posted for 2014.
The TwinSpires brand contributed quarterly net revenue of $43.8 million to the overall figure, up from $40.9 million reported for the same period of 2014. It generated annual net revenue of $200.2 million compared to $190.3 million in the previous year.
Last but not least, net revenue from Big Fish Games amounted to $113.7 million in the fourth quarter of 2015 and to $413.7 million for the whole year. As mentioned above, the company was acquired by Churchill Downs in December 2014. Back then, it generated the amount of $13.9 million until the end of the calendar year.
Commenting on the gambling operator’s financial results, Churchill Downs CEO Bill Carstanjen said that they are the result from their strength in operations and “disciplined approach” towards future “capital allocation and efficiency.” Mr. Carstanjen added that they will continue positioning the gambling company for a long-term and sustainable growth.
