The considerable investment Churchill Downs Inc. has placed in historical horse racing continues to pay dividends as the success of the pari-mutuel games that look like slot machines—along with a record-breaking Kentucky Derby (G1) week—paced the Louisville, Ky.-based company to record adjusted earnings.
In its second quarter (through June 30) report of business results released July 26 after trading had closed, CDI reported record second quarter revenue of $768.5 million, earnings of $408 million, and record adjusted earnings of $363.7 million behind a strong quarter for its live and historical horse racing segment.
In terms of live racing, the success was powered by another record-breaking Derby week. CDI said record all-sources handle and the debut of new seating in the first turn at Churchill Downs racetrack helped power a $20.5 million increase in revenue for the week.
After a rash of equine fatalities during racing, the Churchill spring-summer meet was moved June 10 to CDI sister track Ellis Park. Under its TwinSpires segment, CDI noted a $3.9 million decline in adjusted earnings compared with the second quarter of 2022 in its advance-deposit wagering operation, attributing that drop to “lower retail horse racing handle due to industry race day cancellations and the decision to move a portion of the Churchill Downs racetrack spring meet to Ellis Park in June 2023 as well as higher content-related expenses and higher advance-deposit wagering taxes in certain jurisdictions.”
The company reported net income of $143 million for the quarter, which was down from the $339.3 million reported in the second quarter of 2022 when the company reported a $193.6 million after-tax gain on the sale of the former Calder Race Course land.
