Racing, casino and social gaming operator Churchill Downs Inc. (CDI) generated record revenue in Q2 thanks to a strong Kentucky Oaks and Derby week and continued strength at its online operations.
CDI’s total revenue in the three months ending June 30 came to $409.2m, a 35% improvement over the same period last year. Adjusted earnings rose 34% to a record $157.2m while net earnings fell 4% to $55m thanks to costs associated with last year’s $885m acquisition of the Big Fish Games social and mobile games operation.
Company CEO Bill Carstanjen said all of CDI’s verticals showed improvement in Q2, but Big Fish was the “largest growth catalyst.” The division reported revenue of $112.7m, with $48.2m coming from social casino, $36.5m from free-to-play casual and $28m from premium games. Total bookings were up 40% from the comparable quarter prior to CDI’s acquisition.
Social casino bookings were up 31% year-on-year, as average paying users rose 24% and average bookings per paying user rose 6%. Free-to-play casual reported average paying users up 173% and average bookings per paying user up 78%. Premium bookings fell 22% as customers continued their shift away from paid PC games to free-play mobile products.