Churchill Downs posts record earnings, plans more improvements

Churchill Downs Inc. posted record results for its third quarter.

The Louisville, Ky.-based company said in a news release Wednesday that net revenue rose to $628.5 million from $572.5 million a year earlier. Net income rose to $65.4 million, or 86 cents a share, from $61 million, or 79 cents a share.

Revenue in CDI's live and historical racing segment rose to $247.5 million from $219.5 million. For the company's gaming segment, revenue was up to $269.7 million from $244.3 million.

In a conference call Thursday morning, CDI CEO Bill Carstanjen provided an updated on the new starting-gate pavilion at the company's flagship Churchill Downs racetrack. "We are on track to complete this project on budget and on time for next year's Kentucky Derby," he said.

The project "will transform the seating area in front of the starting gate suites from 10,000 bleacher seats to a combination of approximately 8,500 premium stadium and track side box seats. We will also significantly improve the amenities for these guests, as well as for an additional 2,800 people seated in existing surrounding sections who will be able to access the hospitality options of the newly renovated section," he said.

Carstanjen said CDI also is "designing a series of new infield experiences."

This project will include converting temporary infield structures to permanent structures that will increase seating from about 800 to about 7,000.

That will require a new ingress and egress option, he said, so the company is considering a new tunnel on the front side and infield.

"These projects will, by far be the largest expansion we have done to date, and will increase our premium seated inventory by approximately 20 perecent," Carstanjen said. He said more details would be provided in the company's next earnings call in February.

Some areas will be ready for the Kentucky Derby in 2026, he said, and the remaining areas should open for Derby in 2027 and 2028.