Speedway Motorsports (TRK), Dover Motorsports (DVD) & Churchill Downs (CHDN) have reported earnings for the quarter ending July 30th. Below is a recap of each company’s earnings report:
Speedway Motorsports (TRK):
Reported increase in both revenue and net income for Q2 ’17, from same time last year (up to $.68/share from $.62/share). YTD revenue and income figures are also up from 2016.
- Good News: Track rentals & ancillary broadcast rights generating more revenue. Attendance & fan interest is trending upward.
- Bad News: Certain admission revenues are down. Management believes underemployment and the absence of a fiscally strong middle class are hurting numbers.
Dover Motorsports (DVD):
Reported slight increase in revenue and net income for Q2 ’17, from same time last year. Reported earnings of $.14/share remained the same.
- Good News: Increase in broadcasting revenue.
- Bad News: Lower admissions revenue for Dover NASCAR weekend.
Churchill Downs Incorporated (CHDN):
Reported a 3% increase in revenue and 12% increase in net income for Q2 ’17, from same time last year. Reported earnings of $4.81/share, a 17% increase YOY, and $.30 higher than analyst predictions.
- Good News: Increase in racing revenues from a strong Kentucky Derby week. Equity investments and organic growth lead to increase in casino revenues.
- Bad News: Gaming company Big Fish Games saw net revenues decrease by $12.6 million.
Howie Long-Short: I’m skeptical when companies are still blaming the economy/underemployment in 2017.
Fan Marino: Never been a NASCAR guy. Just can’t get excited by someone driving in circles…even if it is really fast.