Churchill Downs Inc. posted record revenue in Q3 despite decreased activity in its social casino division.
Figures released Thursday show CDI revenue topping $303.4m in the three months ending September 30, an 8% year-on-year gain and a new CDI record. Adjusted earnings fell 7% to $67.3m while net income more than doubled to $8.7m.
The Big Fish Games online gaming division continued to be CDI’s top earner with revenue up 18% to $122.3m, although the division’s earnings fell nearly one-third to $23.4m, dragged down (in part) by $4.4m in extra spending on user acquisition.
The bulk of online revenue came from casual and mid-core free-to-play games, which shot up more than one-quarter to $51.8m. This helped offset a 7% decline in social casino bookings ($44.2m) and a 16% fall in premium games ($22.5m). The social casino operation saw an 8% increase in average paying users but a 14% decline in average bookings per paying user, suggesting some social casino whales either lost interest of defected to another provider.