Churchill Downs Inc. reports revenue record, income drop

Although Churchill Downs Inc. reported record net revenue of $768.5 million for the second quarter, it also reported Wednesday afternoon that net income dropped 58 percent to $143.0 million compared with $339.3 million in the same three months last year.

The company said its revenue rose 32 percent compared with $582.5 million for the same three months in 2022.

It also said it established record adjusted earnings before interest, taxes, depreciation and amortization of $363.7 million, a 25 percent rise from the $291.2 million from the second quarter of 2022.

In NASDAQ after-hours trading following the quarterly earnings report, CDI stock dropped 2 percent to $129.57 a share. It had closed in normal hours Wednesday at $131.58, up 0.9 percent from Tuesday.

Churchill said its live and historical racing segment delivered record revenue that was up 48 percent and adjusted earnings that rose 36 percent compared with last year’s second quarter.

The company said Churchill Downs racetrack ran the 149th Kentucky Derby with record all-sources handle during the week with a record contribution to adjusted earnings and the debut of the new first-turn grandstand.

The opening of a new, 123-room hotel, chop house, bourbon bar and sports bar at Derby City Gaming and Hotel in Louisville, Ky., last month was also highlighted in the company report.

Churchill’s gaming segment delivered record, second-quarter revenue and adjusted earnings. Revenue rose 34 percent and earnings 16 percent over last year’s second quarter.

The company closed April 25 on an offering of $600 million of 6.75 percent senior notes due in 2031.

As of May 22, CDI’s common stock was split 2-for-1 with a proportionate increase in the number of its authorized shares of common stock.

Churchill also announced Wednesday it would renovate its Jockey Club suites at its namesake racetrack in a $14 million project that is scheduled to be done in time for the 150th running of the Derby next May.

According to a company news release, the renovation plans will enhance all aspects of the 61 suites, common spaces, dining rooms and restrooms on the fourth, fifth and sixth floors in a tower adjacent to the twin spires along the Churchill Downs homestretch.

Originally built in 2004, the Jockey Club suites seat about 2,500 people.

The senior management of CDI will hold an earnings call Thursday at 9 a.m. EDT.