Q4 2024 Churchill Downs Inc Earnings Call Transcript
Key Points
- Churchill Downs Inc (CHDN) achieved record net revenue and adjusted EBITDA in 2024, with an 11% and 13% increase respectively over 2023.
- The company successfully opened major projects like the Terre Haute casino resort and the Rose gaming resort, which are expected to drive growth in the coming years.
- The Kentucky Derby continues to be a significant asset, with ongoing investments in infrastructure and hospitality expected to enhance the guest experience and drive future revenue.
- CHDN's HRM venues in Virginia contributed significantly to the company's financial performance, accounting for 20% of the nearly $1.2 billion adjusted EBITDA in 2024.
- The company maintains a strong balance sheet, allowing for continued investment in growth opportunities while returning capital to shareholders through share repurchases and dividends.
- The introduction of new projects and expansions, such as the Starting Gate Courtyard and Pavilion, may pose risks of construction disruptions, although the company aims to minimize these impacts.
- The Rose gaming resort in Virginia is still in its early stages, requiring significant marketing investment to educate the market and attract customers.
- CHDN faces challenges from gray market gaming, which continues to impact revenue despite progress in enforcement in states like Kentucky and Virginia.
- The regional gaming market shows signs of maturity in certain areas, which may limit growth opportunities compared to other segments like HRMs and the Kentucky Derby.
- The company is exposed to potential economic headwinds, such as inflation and wage growth, which could impact consumer spending and operational costs.
Hello, and welcome to the Churchill Downs Inc. fourth quarter and full-year 2024 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. It is now my pleasure to introduce VP of Investor Relations, Sam Ullrich.
Thank you, Andrew. Good morning, and welcome to our 2024 fourth-quarter earnings conference call. After the company's prepared remarks, we will open the call for your questions. The company's 2024 fourth-quarter business results were released yesterday afternoon. A copy of this release announcing results and other financial and statistical information about the period to be presented in this conference call, including information required by Regulation G, is available at the section of the company's website titled News, located at churchilldownsincorporated.com, as well as in the website's Investors section.
Before we get started, I would like to remind you that some of the statements that we make today may include
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