Churchill Downs has released its Q2 financial report, showing a 31.9% increase in net revenue to $768.5m year-on-year. This also marks a revenue increase of 37.4% from the previous quarter.
The live and historical horseracing brand owns and operates gaming venues across the US, and Churchill Downs Racetrack hosted the 149th Kentucky Derby during Q2 of this year.
Though racing activity was suspended in June due to injuries and seven horses died the week before the event, the 2023 Kentucky Derby set a wagering record of $288.7m in handle. In 2022, the record previously stood at $273.8m.
Churchill Downs recorded adjusted EBITDA was also up this quarter to $363.7m, an increase of 24.9% year-on-year. However, net income decreased from $339.3m in the second quarter of 2022 to $143m in Q2 of this year.
The gaming segment of Churchill Downs increased its revenue 34% to $247.9m, while the live and historical racing segment generated net revenue of $408m and its TwinSpires segment made $139.1m.
Within its live and historical racing segment, the company states that this revenue rise was primarily due to a $94.6m increase attributable to Virginia properties acquired in the P2E transaction, and the $20.5m increase during the Kentucky Derby week at Churchill Downs Racetrack.
The company also highlights the opening of a new 123-room hotel, chop house, bourbon bar and sports bar in Louisville, Kentucky at Derby City Gaming and Hotel as one of this quarter’s successes.
In April, Churchill Downs closed on a $600m offering of 6.8% senior notes due April 2031, and in late May the company’s common stock was split two-for-one, experiencing an increase in its authorized shares. Its share price is currently $131.58.
