Churchill Downs reports record net revenue for Q2 driven by 150th Kentucky Derby, growth across segments

Churchill Downs Incorporated (CDI) has reported record financial results for the second quarter ending June 30, reporting a net revenue of $890.7 million, which is a 16% increase from the $768.5 million recorded in the same period last year. 

The net income attributable to CDI surged by 46% to $209.3 million, compared to $143 million in Q2 of 2023. Additionally, CDI achieved an all-time high adjusted EBITDA of $444.8 million, representing a 22% increase from the previous year's $363.7 million.

The Live and Historical Racing segment played a key role in the quarter, with revenue here climbing by 20% to $490.2 million and Adjusted EBITDA up 25%. Growth in Q2 was also driven by a record-breaking Kentucky Derby Week and the expansion of CDI's operations in Virginia.

Meanwhile, the TwinSpires segment, which encompasses CDI’s online and retail sports betting operations, reported a 15% increase in revenue, reaching $159.9 million. The adjusted EBITDA for this vertical saw a notable 36% rise to $46.2 million. Growth was primarily attributed to the Exacta transaction and expanded market access in online sports betting. 

In the Gaming segment, revenue grew by 11% to $274.4 million, an increase that was influenced by the opening of the Terre Haute Casino Resort in April 2024. The new property helped offset a $5.4 million decrease in Pennsylvania after CDI decided not to renew the management agreement at Lady Luck, and a $2.7 million decrease in Maine attributed to inclement weather in April. The adjusted EBITDA for this segment rose by 14% to $140.7 million. 

The 'All Other' category, which includes intercompany revenue from the newly established captive insurance company, recorded revenue of $1.9 million. However, the adjusted EBITDA in this category decreased to -$21.3 million, primarily due to higher corporate compensation and administrative expenses. 

One of the key highlights of the quarter was the 150th Kentucky Derby, which achieved record handle for Derby Week. Additionally, the company signed a new seven-year agreement with NBC to broadcast the Kentucky Derby Week through 2032.

The company repurchased 93,874 shares of its common stock at a cost of approximately $13.0 million. Furthermore, CDI amended its senior secured credit agreement to extend the maturity dates of its revolving credit facility and Term Loan A facility from 2027 to 2029.

Also on Wednesday, the company reported that it would spend $80 million to $90 million to renovate and upgrade the grandstand at its flagship Kentucky track. The project will update ticketed seating options while improving and adding to the amenities available for all guests in the grandstand area.