Churchill Downs Reports Record Q2 Revenue Of $768.5 million, But Net Income Down

Written By Katarina Vojvodic on July 27, 2023
Churchill Downs Inc. Q2 Revenue Report

Churchill Downs Inc. (CDI) reported revenue of $768.5 million during the second quarter, a 31.9% increase compared to $582.5 million in the same period last year.

The Kentucky-based company’s performance in the quarter that ended June 30 was also a 37.4% increase from the company’s $559.5 million generated during Q1 2023.

The racetrack operator also reported this week a net income of $143.0 million. The number is a 57.9% decrease from the $339.3 million reported in the same period last year.

Furthermore, CDI posted a record Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $363.7 million, which is a 25% rise compared to $291.2 million in the second quarter of 2022.

Racing segment shows 48% year-over-year revenue increase

CDI said that its live and historical racing segment delivered record revenue and Adjusted EBITDA, with revenue up 48% and Adjusted EBITDA rising 36% compared to Q2 2022.

Churchill Downs ran the 149th Kentucky Derby with a record all-sources handle, record Derby Week contribution to Adjusted EBITDA and the debut of the new first-turn experience.

Kentucky Derby week revenues increased $20.5 million this year in comparison to last year.

For Q2 2023, the company said revenue from live and historical racing increased $132.1 million also because of:

  • A $94.6 million increase attributable to the Virginia properties acquired in the P2E Transaction
  • A $12.0 million increase attributable to the properties acquired in the Ellis Park and Chasers Transactions
  • A $10.3 million increase primarily due to the opening of Turfway Park in Northern Kentucky in September 2022
  • A $3.5 million increase from its Oak Grove property in Southwestern Kentucky

The company also highlighted a $1.1 million increase from its Derby City Gaming property in Louisville, which opened last month. The property features:

  • 123 new rooms
  • Chop house
  • Bourbon bar
  • Sports bar

CDI’s gaming segment also high

Over last year’s second quarter, CDI’s gaming segment delivered a record in revenue and adjusted earnings. Revenue was up 34%, while earnings rose 16%. 

Revenue increased by $63.4 million, mainly due to a $68.6 million increase thanks to the New York and Iowa properties acquired in the P2E Transaction. The company also noted a partial offset by a $5.2 million net decrease from CDI’s other gaming properties.

Adjusted EBITDA increased $16.6 million, driven by a $21.4 million increase attributable to the same properties acquired in the P2E Transaction. CDI also stated a partial offset by a $4.8 million decrease from other properties in that segment.

Photo by Julio Cprtez/AP photo; illustrated by PlayUSA
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Katarina Vojvodic

Katarina Vojvodic is a lead writer for PlayUSA who lives in Toronto. Vojvodic provides coverage of the US gambling industry with a focus on US online casinos. Previously, she covered Ontario’s online gambling industry for Vojvodic holds a master’s degree in journalism from the University of Belgrade. Outside working hours, she can be found near the water with her husband and their two kids.

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