The Derby is a money-maker for CDI, and the loss of fans will likely crimp the operator’s bottom line, because that equals no turnover from ticket and food and beverage sales, among other revenue generators. Last year, Derby Week represented one percent of the company’s annual earnings before interest, taxes depreciation and amortization (EBITDA).<\/p>\n
As for the betting handle, the Derby card generated $250.9 million in 2019. But just 8.4 percent of that total was placed at the track, indicating online betting is picking up plenty of slack and could reduce the sting of this year’s no-spectators scenario. Stauff, the Susquehanna analyst, is bullish on CDI’s online wagering prospects.<\/p>\n
In particular, CHDN\u2019s valuation is largely geared now to its online division\u2019s outperformance this year, and we expect that to continue in 2H20 with revenue growth of ~46 percent,\u201d <\/strong>he said.<\/strong><\/p><\/blockquote>\nIncluding Stauff, three analysts cover the stock, with the other two having bullish ratings on the name.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Churchill Downs (NASDAQ:CHDN) are trading lower Monday after Susquehanna analyst Joseph Stauff downgraded the name following the announcement that the Kentucky Derby will be run without fans in the stands. After the close of US markets last Friday, the company said America’s most venerable horse race will be held at the eponymous track […]<\/p>\n","protected":false},"author":46,"featured_media":145983,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,14577],"tags":[],"acf":[],"yoast_head":"\n
Churchill Downs Downgraded Following Derby No Fans Announcement<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n