boycott of churchill downs

[upthecreek]

Originally Posted by RXB

Chart is out-of-date. They raised takeout last spring to 17.5% WPS and 22% exotics, so now they're basically midpack in terms of takeout.

OK I guess I'll let them know as it asks to do if any track is wrong
Thnx

[upthecreek]

I never realized how high the takeout is on some wagers @Mth

[tanner12oz]

Stock is up like 400%...bottom line seems to be just fine

[levinmpa]

I heard John Asher on the Saturday 4/25 Race Day Las Vegas show say that Churchill will have a new Pick 7 jackpot wager with a 15% takeout. It's a dime wager with 30% of pool carrying over if there is not a single ticket winner. Still not enough to get me to wager there, but I thought that was interesting.

[burnsy]

Originally Posted by tanner12oz

Stock is up like 400%...bottom line seems to be just fine

Yeah, the 11.5% handle drop caused that..........had nothing to do with the 6 casinos and the money they actually make.........and if I can figure that out, the stock holders and board can't?..............

[Saratoga_Mike]

Originally Posted by burnsy

Yeah, the 11.5% handle drop caused that..........had nothing to do with the 6 casinos and the money they actually make.........and if I can figure that out, the stock holders and board can't?..............

Cash flow (EBITDA) from CHDN's racing business increased 21.7% in 2014 vs. 2013, but I'm sure you knew that.

[ronsmac]

Originally Posted by Saratoga_Mike

Cash flow (EBITDA) from CHDN's racing business increased 21.7% in 2014 vs. 2013, but I'm sure you knew that.

They got a sweet deal when handle dropped, a tax break from the state and a takeout increase. Getting rid of Calder racing yet keeping the casino was a Godsend also.

[DeanT]

They've divested from racing, so can't really look at share prices. How the slots and casinos go, the stock goes.

[Saratoga_Mike]

Originally Posted by ronsmac

They got a sweet deal when handle dropped, a tax break from the state and a takeout increase. Getting rid of Calder racing yet keeping the casino was a Godsend also.

The majority of the racing EBITDA increase was related to better profitability on Oaks and Derby day. In addition, the takeout increase (while it depressed handle and was arguably the wrong thing in the intermediate to long term), it actually increased NET handle to Churchill (the track) in 2014, as the "hold" increased to 10.4% from 8.6%. On Calder, the changes helped by about $3 mm.

[Saratoga_Mike]

Originally Posted by DeanT

They've divested from racing, so can't really look at share prices. How the slots and casinos go, the stock goes.

Huge overstatement.

Over half (roughly $107 mm) of the company's 2014 EBITDA was racing operations and Twinspires.

Casinos are obviously the growth driver for the company, but they're still in the racing business in a big way. You can argue the racings ops are mismanaged, but that's different than saying "they've divested from racing," which is plainly false.

[DeanT]

Originally Posted by Saratoga_Mike

Huge overstatement.

Over half (roughly $107 mm) of the company's 2014 EBITDA was racing operations and Twinspires.

Casinos are obviously the growth driver for the company, but they're still in the racing business in a big way. You can argue the racings ops are mismanaged, but that's different than saying "they've divested from racing," which is plainly false.

Divestment probably not a proper word. Racing, outside the Derby etc, means much less to them nowadays. Why they are probably have the Fairgrounds up for sale.

[DeanT]

Originally Posted by Saratoga_Mike

In addition, the takeout increase (while it depressed handle and was arguably the wrong thing in the intermediate to long term), it actually increased NET handle to Churchill (the track) in 2014, as the "hold" increased to 10.4% from 8.6%.

That's true. It's hard to screw up Derby Day and lose money on a margin hike. Excluding those two days, EBITDA took a hit with lost handle, however.

It will be interesting to see what they do this year.

[Saratoga_Mike]

Originally Posted by DeanT

That's true. It's hard to screw up Derby Day and lose money on a margin hike. Excluding those two days, EBITDA took a hit with lost handle, however.

It will be interesting to see what they do this year.

Interestingly enough, on a like-for-like basis net revenue (across the entire portfolio) performed better on the racing side of the biz than on the casino side in 2014 (vs. 2013).

Net pari-mutuel rev* was 300.0 mm, up 0.6%, while net casino** fell out at $242.9 mm, down 4%.

*includes Twinspires and excludes Calder
**excludes Oxford casino

[DeanT]

Originally Posted by Saratoga_Mike

Interestingly enough, on a like-for-like basis net revenue (across the entire portfolio) performed better on the racing side of the biz than on the casino side in 2014 (vs. 2013).

Net pari-mutuel rev* was 300.0 mm, up 0.6%, while net casino** fell out at $242.9 mm, down 4%.

*includes Twinspires and excludes Calder
**excludes Oxford casino

I posted to Dan above when he tweeted that out a few weeks ago that in ten or fifteen years I believe people will want racetracks. I think slots are going to be a pimple at some point, and the revenue from racing will be better for a buyer. That hedges on racing keeping gvt protections etc and partially fixing the game, but I think it may have more growth possibilities.

Could be wrong, I am many times, but I would not be surprised.

[Saratoga_Mike]

I hope you're right about slots!