Press Releases
Rivalry Issues 2024 Business Update
Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Millennials and Gen Z, today issued a letter to shareholders summarizing recent progress and outlining strategic priorities for 2024. The full text of the letter follows. All dollar figures are quoted in Canadian dollars.
Rivalry Corp. 2024 Business Update
To our Shareholders,
Rivalry is defining the future of online gambling for a generation born on the internet.
Our aspiration is to set the standard for what is possible in this category, and to be market leaders in the inevitable generational shift that is underway.
We exited 2023 as a substantially diversified company, both geographically and across our product suite, with the strongest customer KPIs in our history.1 Our esports expertise no longer solely defines us, and our rapid ascent in other segments such as traditional sports, casino, and fantasy outlines the increasingly widening opportunity set we’re realizing as a result of our unrivaled demographic understanding.
Rivalry’s brand has become a bridge to Gen Z experiences. We’ve proven we can acquire, engage, and retain this demographic in gambling products under our umbrella. The value we’re beginning to unlock from this cannot be overstated.
The potential for how far our brand can go is just beginning to unfold. And it is why 2024 is setting up to be a year of significant growth, powered by our relentless pursuit to deliver a one-of-a-kind experience to a digitally native demographic that we can delight better than anyone else.
What we have built is only made possible by a world-class team excelling at their craft. One that is unafraid to push against the long-standing industry status quo. This high standard has made Rivalry a gravitational center for talent and breeding ground for innovation that we believe is unmatched in the online gambling industry.
This is the engine building operating leverage for Rivalry, enabling us to deliver on growth while maintaining financial discipline, leading us to profitability.
Having taken significant strides toward our vision in 2023, we now enter 2024 hungry for more. In this letter we will highlight some of our achievements last year and share what shareholders can look forward to in 2024.
2023 Highlights
We’re proud of our accomplishments last year:
Maintained growth momentum, with year-to-date reported betting handle increasing 127% to $338.1 million, revenue increasing 70% to $29.2 million, and gross profit up 175% to $13.2 million through Q3 2023 compared to the first nine months of 2022, while marketing spend decreased by 8%.
Proved our Gen Z demographic thesis by leading from the front with gaming and internet culture while diversifying below, with casino growing to nearly 50% of total wagers, followed by esports, and then sports.
Achieved record high customer KPIs, including all-time high average handle per customer, average revenue per user, and record low cost of customer acquisition, demonstrating the operating leverage which compounds with scale.1
Reached key product innovation milestones, including the release of an industry-first same-game parlay product for esports, supporting an improved sportsbook product mix and enhanced margin profile.
Debuted our iOS mobile app in Ontario, contributing to a 400%+ year-over-year increase in betting handle in the province in Q3 2023.
Rapidly scaled our casino offering with new features, games, and mobile functionality.
Developed and launched our second-ever original game, Cash & Dash, which has already become one of the most popular and highest-grossing casino titles on our platform.
Continued marketing excellence and expanded creator network with over 100 brand partners and 90M+ aggregate followers, creating reliable consumer touch points to engage our core audience and enabling us to drive growth without the use of excessive bonus and promotional offers.
A Generational Brand in Online Gambling Delivering Tangible Business Results
There are generational cycles in technology where new products rise up to serve an emerging customer in a way legacy companies did not. In the online betting space, we believe Rivalry is that company.
It’s reflected in a product suite that looks like nothing else in this category – one that is intrinsically entertaining, culturally relevant, and always evolving. It’s reflected in a brand strategically positioned at the intersection of gaming and internet culture with marketing that spreads globally through unignorable creative work. It’s seen in a company that deliberately stands out in a sea of sameness with a customer base averaging a decade younger than our peers.2
Everything we put out into the world is intentionally-designed to resonate with our target audience. Customers, interested brand partners, and various other stakeholders have come to view Rivalry as a proven onramp to interactive and entertaining experiences broadly, which is opening up exciting possibilities for the Company to expand.
In 2023, this enabled us to launch a standalone NBA fantasy app called Rivalry Ultimate Fan, which is acquiring new users, cross-selling them, and further engaging existing ones in our product universe.
The value being created from our original game IP is also materializing rapidly. Four months after launching our latest first-party game Cash & Dash, it has become the fifth most-played game on our platform and among the top ten highest-grossing titles by revenue.
In roughly a year’s time, casino has grown to nearly 50% of betting handle, growing 141% year-over-year in Q3 2023 without cannibalizing player wallet share. Casino.exe, our custom-built platform, has represented a key part of our success in this segment by differentiating Rivalry’s casino offering from the others out there.
The connective thread between these things is a highly-nuanced understanding of Gen Z’s consumer behaviors, its connectivity to gaming and internet culture, and our ability to transform it into a successful product experience that is well-differentiated from the pack.
Together, this creates a generational brand in online gambling delivering tangible business results, and one where the possibilities of its products, marketing, and brand are limitless.
Rivalry in 2024 and Beyond
We are committed to pursuing strategic and well-measured investments in key areas of our business, positioning Rivalry for sustained growth throughout 2024 and beyond. Our objectives are designed to maintain and accelerate our momentum towards profitability. Initiatives and catalysts anticipated to drive results in 2024 include:
Operating leverage and profitability: Continued cost management to balance profitability with growth by doubling down on proven marketing tactics which deliver business operating leverage and position Rivalry for long-term success.
New original games: Releasing more first-party games in 2024 which blur the lines between gaming, betting, and entertainment to meaningfully engage a digitally native audience.
Casino B2B opportunities. Our original casino games have demonstrated their ability to engage an under-30 demographic and drive revenue; we believe this will open up B2B licensing opportunities and create a new revenue stream for our business.
Product innovation: New proprietary releases and enhancements to the current product suite across sportsbook, casino, and more, including those which drive usage of higher-margin verticals and increase overall player engagement.
Player value focus: Strengthening innovative player retention initiatives through gamification and loyalty programs that not only increase player satisfaction and compound user value, but contribute to the profoundly unique experience of betting on Rivalry.
Geographic expansion: Growing our Total Addressable Market by entering new markets.
Traditional sports expansion: Investing further in the traditional sports segment, which has increased on Rivalry by 60% since 2022, demonstrating the success of our brand among Gen Z broadly and enabling us to continue broadening our TAM.
Our multi-year track record of triple-digit growth amidst decreasing year-over-year marketing spend is a testament to the execution of our team, business model, and brand leadership among Gen Z. We have unparalleled demographic expertise, a product innovation engine delivering results, unforgettable marketing, and an immensely talented team.
Our vision for online betting is challenging conventional norms in a long-standing industry. We are disruptors, stepping on nicely manicured lawns by seeing the future of online gambling and creating it. The next generation is just getting started on their customer journey, and we are poised to own it.
We have conviction in our one-of-one strategy in this industry and will continue pushing it forward at every opportunity.
As we step into 2024, our enthusiasm is at a high to showcase the same operational excellence that has set us apart in a fiercely competitive industry.
With that, I wish everyone a happy, successful, and healthy year.
Steven Salz
Co-Founder & CEO
Rivalry Corp.
Cautionary Note Regarding Forward-Looking Information and Statements
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of the Company at the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include regulatory or political change such as changes in applicable laws and regulations; the ability to obtain and maintain required licenses; the esports and sports betting industry being a heavily regulated industry; the complex and evolving regulatory environment for the online gaming and online gambling industry; the success of esports and other betting products are not guaranteed; changes in public perception of the esports and online gambling industry; failure to retain or add customers; the Company having a limited operating history; negative cash flow from operations; operational risks; cybersecurity risks; reliance on management; reliance on third parties and third-party networks; exchange rate risks; risks related to cryptocurrency transactions; risk of intellectual property infringement or invalid claims; the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and general economic, market and business conditions. For additional risks, please see the Company’s annual information form for the year ended December 31, 2022 and other disclosure documents available on SEDAR+ website.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Source: Rivalry Corp.
Award-winning fast-betting content provider strengthens its position in the region with the latest hire
BETER, the in-demand provider of fast-betting content, data, and live streaming for esports and sports, has strengthened its team with the appointment of Juliana Querino as LatAm Business Development Manager.
Juliana, a seasoned business development specialist based in Brazil, has extensive experience in the Latin American iGaming industry. She has previously held various business development positions at Better Collective, Endorphina, Salsa Technology, and other companies. Her expertise was recognized by the G&M News platform, which included her in its Top 5 Women in the Industry 2024 list—highlighting women making significant contributions to the growth of iGaming in the region.
In her new role at BETER, she will drive the company’s expansion across Latin America, forging new partnerships with regional operators and aggregators, particularly in Brazil, where demand for BETER’s content continues to grow.
She will also drive BETER into new LatAm markets where the provider does not currently have a presence while managing relationships with existing partners to ensure they get the most out of the provider’s next-gen content offering.
Chuck Robinson, Chief Revenue Officer at BETER, said: “Latin America is a fast-moving market with opportunities opening up all the time. To capitalize on these, we need an exceptional specialist, and in Juliana, we have found exactly that. Her expertise and deep market knowledge make her a valuable addition to our team.
“We are already experiencing strong demand for our fast-betting products and solutions across the region. With Juliana on board, we can further identify key operators that would benefit from partnering with us, driving even greater growth.
“I’m delighted to welcome Juliana to the BETER team.”
Juliana Querino commented: “Fast-betting content has become essential for operators in Latin America and beyond, and I’m thrilled to join BETER in expanding awareness of its award-winning portfolio.
“BETER is renowned for its ESportsBattle and Setka Cup tournaments, which are already popular among bettors in LatAm. But our offering goes far beyond that, and I’m eager to showcase the full suite of products and solutions to operators from Brazil to Peru.”
“I look forward to helping BETER maximize the full potential of the LatAm market.”
Churchill Downs Incorporated (Nasdaq: CHDN) (the “Company”, “CDI”, “we”) today reported business results for the quarter and full year ended December 31, 2024.
Company Highlights
- Record fourth quarter 2024 financial results compared to the prior year:
- Net revenue of $624.2 million, up $63.0 million or 11%
- Net income attributable to CDI of $71.7 million, up $14.1 million or 24%
- Adjusted EBITDA of $236.6 million, up $17.5 million or 8%
- Record 2024 financial results compared to the prior year:
- Net revenue of $2.7 billion, up $272.6 million or 11%
- Net income attributable to CDI of $426.8 million, up $9.5 million or 2%
- Adjusted EBITDA of $1.2 billion, up $135.3 million or 13%
- We successfully ran the 150th Kentucky Derby on the first Saturday of May generating all-time record all-sources handle and all-time record Derby Week Adjusted EBITDA.
- We opened the Terre Haute Casino Resort in Indiana in April 2024, and the hotel in May 2024.
- The Rose Gaming Resort opened in Dumfries, Virginia in November 2024, with 1,650 historical racing machines and a 102-room hotel as our eighth HRM entertainment venue in Virginia.
- We opened Owensboro Racing & Gaming in Owensboro, Kentucky on February 12, 2025, with 600 historical racing machines, a retail sportsbook, simulcast wagering, and food and beverage offerings.
- We ended 2024 with net bank leverage of 4.0x and returned $218.3 million of capital to shareholders through share repurchases and dividends.
| CONSOLIDATED RESULTS |
| Fourth Quarter | Years Ended December 31 | ||||||||||
| (in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||
| Net revenue | $ | 624.2 | $ | 561.2 | $ | 2,734.3 | $ | 2,461.7 | |||
| Net income attributable to CDI | $ | 71.7 | $ | 57.6 | $ | 426.8 | $ | 417.3 | |||
| Diluted EPS attributable to CDI | $ | 0.95 | $ | 0.76 | $ | 5.68 | $ | 5.49 | |||
| Adjusted EBITDA(a) | $ | 236.6 | $ | 219.1 | $ | 1,159.2 | $ | 1,023.9 | |||
| (a) This is a non-GAAP measure. See explanation of non-GAAP measures below. | |||||||||||
| SEGMENT RESULTS |
The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments. We have changed the name of the TwinSpires segment to Wagering Services and Solutions to better reflect the businesses that are within this segment. All comparisons are against the applicable prior year period unless otherwise noted.
Live and Historical Racing
| Fourth Quarter | Years Ended December 31, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Revenue | $ | 275.5 | $ | 235.3 | $ | 1,267.0 | $ | 1,084.6 | |||
| Adjusted EBITDA | 101.6 | 88.9 | 574.6 | 475.4 | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $40.2 million due to a $19.6 million increase primarily from the opening of The Rose Gaming Resort in Northern Virginia, a $10.4 million increase from our other Virginia HRM venues, a $4.1 million increase from our Southwestern Kentucky HRM venue, a $2.7 million increase at Churchill Downs Racetrack, a $2.1 million increase from our Northern Kentucky HRM venues, and a $1.3 million net increase from our other HRM venues.
Fourth quarter 2024 Adjusted EBITDA increased $12.7 million due to a $5.2 million increase primarily from the opening of The Rose Gaming Resort in Northern Virginia, a $7.6 million increase from our other Virginia HRM venues, a $2.1 million increase from our Southwestern Kentucky HRM venue, and a $1.5 million increase from our Northern Kentucky HRM venues. These increases were offset by a $1.8 million decrease related to an increase in government relations expense allocated to Virginia, a $1.3 million decrease at Churchill Downs Racetrack and a $0.6 million decrease at our other HRM venues.
Full Year 2024
Full year 2024 revenue increased $182.4 million due to a $57.2 million increase at Churchill Downs Racetrack due to a record-breaking 150th Derby Week, a $25.9 million increase in Northern Virginia including the opening of The Rose Gaming Resort, a $17.2 million increase from the opening of the Rosie’s Emporia HRM venue in Southern Virginia in September 2023, a $39.5 million increase from our other Virginia HRM venues, a $41.5 million increase from our Kentucky HRM venues, and a $1.1 million increase from our New Hampshire venue.
Full year 2024 Adjusted EBITDA increased $99.2 million due to a $32.6 million increase at Churchill Downs Racetrack due to a record-breaking 150th Derby Week, $9.7 million increase in Northern Virginia including the opening of The Rose Gaming Resort, a $7.1 million increase from the opening of the Rosie’s Emporia HRM venue in Southern Virginia in September 2023, a $38.3 million increase from our other Virginia HRM venues, and an $11.5 million increase primarily from our other Kentucky HRM venues.
Wagering Services and Solutions
| Fourth Quarter | Years Ended December 31, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Revenue | $ | 108.0 | $ | 110.6 | $ | 500.7 | $ | 458.4 | |||
| Adjusted EBITDA | 37.3 | 34.9 | 165.6 | 132.1 | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue decreased $2.6 million due to a $3.5 million decrease from our sports betting business and a $1.3 million decrease in TwinSpires Horse Racing primarily due to market access and shifts in race days at other tracks. These decreases were partially offset by a $2.2 million increase from Exacta primarily from the growth of our Virginia HRM venues.
Fourth quarter 2024 Adjusted EBITDA increased $2.4 million due to a $2.1 million increase from our Exacta business primarily because of increased fees from the growth of our Virginia HRM venues, a $2.2 million increase from a one-time reduction in compensation expenses related to our Exacta business, and a $0.3 million increase in TwinSpires Horse Racing. These increases were partially offset by a $2.2 million decrease primarily from our sports betting business.
Full Year 2024
Full year 2024 revenue increased $42.3 million due to a $40.8 million increase from our Exacta business primarily from growth in our third party HRM business and from the growth of our Virginia HRM venues and a $2.0 million increase from our sports betting business, partially offset by a $0.5 million decrease from TwinSpires Horse Racing.
Full year 2024 Adjusted EBITDA increased $33.5 million due to a $29.2 million increase from our Exacta business because of increased fees from our Virginia HRM venues, a $2.2 million increase from a one-time reduction in accrued compensation expenses related to our Exacta business, and a $2.6 million increase primarily from our sports betting business, partially offset by a $0.5 million decrease from TwinSpires Horse Racing.
Gaming
| Fourth Quarter | Years Ended December 31, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Revenue | $ | 257.5 | $ | 230.2 | $ | 1,045.4 | $ | 974.6 | |||
| Adjusted EBITDA | 120.1 | 113.4 | 506.9 | 488.6 | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $27.3 million due to a $30.3 million increase from the opening of the Terre Haute Casino Resort, partially offset by a $3.0 million decrease from our other wholly owned gaming properties primarily due to regional gaming softness and increased competition.
Fourth quarter 2024 Adjusted EBITDA increased $6.7 million due to an $11.4 million increase from the opening of the Terre Haute Casino Resort and a $2.7 million increase from our equity investment in Miami Valley Gaming. These increases were partially offset by a $2.3 million decrease from our other wholly owned gaming properties and a $5.1 million decrease from our equity investment in Rivers Des Plaines primarily due to regional gaming softness, increased competition, and higher labor and benefit expense.
Full Year 2024
Full year 2024 revenue increased $70.8 million primarily due to a $96.6 million increase from the opening of the Terre Haute Casino Resort. This increase was partially offset by a $15.6 million decrease from our other wholly owned gaming properties primarily due to inclement weather in January 2024, regional gaming softness, and increased competition; and a $10.2 million decrease due to our decision not to renew the management agreement at Lady Luck at the end of June 2023.
Full year 2024 Adjusted EBITDA increased $18.3 million primarily due to a $44.5 million increase from the opening of the Terre Haute Casino Resort and a $3.0 million increase from our equity investment in Miami Valley Gaming. These increases were partially offset by a $19.5 million decrease from our wholly owned gaming properties and an $8.5 million decrease from our equity investment in Rivers Des Plaines primarily due to inclement weather in January 2024, regional gaming softness, increased competition, and higher labor and benefit expense; and a $1.2 million decrease from proceeds for business interruption insurance claims in the third quarter 2023 that did not reoccur.
All Other
| Fourth Quarter | Years Ended December 31, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 2.1 | $ | 0.2 | $ | 6.6 | $ | 0.9 | |||||||
| Adjusted EBITDA | (22.4 | ) | (18.1 | ) | (87.9 | ) | (72.2 | ) | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $1.9 million due to intercompany revenue related to the captive insurance company that was established in April 2024. All captive revenue is eliminated in consolidation.
Fourth quarter 2024 Adjusted EBITDA decreased $4.3 million driven primarily by increased corporate compensation related expenses and other corporate administrative expenses driven by enterprise growth.
Full Year 2024
Full year 2024 revenue increased $5.7 million primarily due to intercompany revenue related to the captive insurance company that was established in April 2024. All captive revenue is eliminated in consolidation.
Full year 2024 Adjusted EBITDA decreased $15.7 million driven primarily by increased corporate compensation related expenses and other corporate administrative expenses driven by enterprise growth.
| CAPITAL MANAGEMENT |
Share Repurchase Program
The Company repurchased 160,466 shares of its common stock at a total cost of $21.3 million based on trade date under its share repurchase program in the fourth quarter of 2024. The Company repurchased 506,300 shares of its common stock at a total cost of $65.3 million based on trade date under its share repurchase program in 2024. We had $149.6 million of repurchase authority remaining under this program as of December 31, 2024.
Annual Dividend
On October 22, 2024, the Company’s Board of Directors approved an annual cash dividend on the Company’s common stock of $0.409 per outstanding share, a seven percent increase over the prior year. The dividend was paid on January 3, 2025, to shareholders of record as of the close of business on December 6, 2024, with the aggregate cash dividend paid to each shareholder rounded to the nearest whole cent. This marks the fourteenth consecutive year that the Company has increased the dividend per share.
Capital Investments
We currently expect our project capital to be approximately $350 to $400 million in 2025, although this amount may vary significantly based on the timing of work completed, unanticipated delays, and timing of payments to third parties. We plan to use our operating cash flows and existing revolving credit facility to fund our capital project expenditures.
| NET INCOME ATTRIBUTABLE TO CDI |
Fourth Quarter 2024 Results
The Company’s fourth quarter 2024 net income attributable to CDI was $71.7 million compared to $57.6 million in the prior year quarter.
The following factors impacted the comparability of the Company’s fourth quarter 2024 net income to the prior year quarter:
- a $9.9 million after-tax decrease in transaction, pre-opening, and other expense primarily from the settlement of certain liabilities recorded at the time of the Company’s November 2022 acquisition of substantially all of the assets of Peninsula Pacific Entertainment LLC,
- a $1.7 million after-tax increase in other charges and recoveries, net primarily related to non-recurring insurance claim recoveries,
- a $0.2 million decrease of after-tax other charges; and
- a $0.1 million decrease in after-tax non-cash asset impairments.
This was partially offset by:
- a $1.1 million after-tax decrease primarily from legal reserves.
Excluding the items above, fourth quarter 2024 adjusted net income attributable to CDI increased $3.3 million primarily due to the following:
- a $3.9 million after-tax increase primarily driven by the results of our operations,
- partially offset by a $0.6 million after-tax increase in interest expense associated with higher outstanding debt balances and higher interest rates.
Full Year 2024 Results
The Company’s full year 2024 net income attributable to CDI was $426.8 compared to $417.3 million in the prior year.
The following factors impacted comparability of the Company’s net income for the year ended December 31, 2024 compared to the prior year:
- an $86.2 million after-tax gain on the sale of the Arlington property in the prior year; and
- a $0.7 million after-tax decrease primarily from legal reserves.
This was partially offset by:
- a $15.7 million after-tax decrease in non-cash asset impairments,
- a $12.8 million after-tax decrease in transaction, pre-opening, and other expense primarily from the settlement of certain liabilities recorded at the time of the Company’s November 2022 acquisition of substantially all of the assets of Peninsula Pacific Entertainment LLC,
- a $5.1 million after-tax increase of other charges and recoveries, net primarily related to non-recurring insurance claim recoveries; and
- a $1.6 million after-tax decrease of other charges.
Excluding these items, full year 2024 adjusted net income attributable to CDI increased $61.2 million primarily due to the following:
- a $77.0 million after-tax increase primarily driven by the results of our operations and equity income from our unconsolidated affiliates,
- partially offset by a $15.8 million after-tax increase in interest expense associated with higher outstanding debt balances and higher interest rates.
Conference Call
A conference call regarding this news release is scheduled for Thursday, February 20, 2025 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, February 20, 2025. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at churchilldownsincorporated.com.
Use of Non-GAAP Measures
In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.
The Company uses non-GAAP measures as a key performance measure of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company’s core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.
We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.
Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interest; changes in fair value for interest rate swaps related to Rivers Des Plaines; Rivers Des Plaines’ legal reserves and transaction costs; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.
Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interest.
Adjusted EBITDA excludes:
- Transaction expense, net which includes:
- Acquisition, disposition, and property sale related charges;
- Other transaction expense, including legal, accounting, and other deal-related expense;
- Stock-based compensation expense;
- Asset impairments;
- Gain on property sales;
- Legal reserves;
- Pre-opening expense; and
- Other charges, recoveries, and expenses.
As of December 31, 2021, our property in Arlington Heights, Illinois (“Arlington”) ceased racing and simulcast operations and the property was sold on February 15, 2023 to the Chicago Bears. Arlington’s results and exit costs in 2023 are treated as an adjustment.
For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Net Income to Adjusted EBITDA included herewith for additional information.
Soft2Bet, a leading global iGaming platform provider, is excited to announce its participation in SBC Summit Rio 2025, taking place on 26-27 February at Riocentro, Rio de Janeiro, Brazil. The company will host an exclusive workshop focused on its cutting-edge casino gamification solution at Stand B960, designed for operators seeking data-driven gamification insights for casino and sportsbook brands.
Soft2Bet’s MEGA workshop, presented by Nicolas Campano, Sales Director LATAM, will provide in-depth insights into how MEGA enhances the player retention loop through motivational engineering and personalised experiences. Users play and bet for real money, collecting additional loyalty points. They spend these points to play bonus games (e.g. Bonus Crab, City Builder, etc) to get extra rewards, including free spins, free bets, bonus money, and real money, which they utilise to play more. This hands-on session will feature live demonstrations, showcasing how the solution boosts engagement and drives business performance for operators in regulated markets.
Alongside MEGA, Soft2Bet will present powerful turnkey solutions with new updates and strong PAM, front-end and sportsbook solutions tailored for LATAM operators. With extensive experience in localisation and personalisation, Soft2Bet has successfully launched B2C brands across multiple highly competitive markets. As one of Soft2Bet’s leading brands, Campobet MX, officially launched in Q4 of 2024, is a prime example of how the company’s platform delivers high-performance, localised gaming experiences for operators looking to expand in the region. Soft2Bet’s products personalise the casino and sports betting experience, delivering an engaging user experience.
“Through this exclusive workshop, we aim to highlight how our API-based, standalone product can enhance the player experience and drive retention in the rapidly growing LATAM market. We look forward to connecting with industry professionals and showcasing the power of innovation in iGaming,” said Campano.
Soft2Bet invites all SBC Summit Rio attendees to Stand B960, where operators can meet with the team, explore Soft2Bet’s full suite of products, and learn more about the company’s strategic growth plans for the Latin American market.
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