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

Churchill Downs reported record revenue of $768.5 million during Q2 2023 earnings ending Jun. 30, 2023. But the net income was down.

Churchill Downs Inc. Q2 Revenue Report
Photo by Julio Cprtez/AP photo; illustrated by PlayUSA
Katarina Vojvodic Avatar
2 mins read

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.

Katarina Vojvodic Avatar
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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 PlayCanada.com. 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.

View all posts by 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 PlayCanada.com. 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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