TLDR Churchill Downs reported record second quarter revenue and earnings, driven by the 152nd Kentucky Derby. The company filed papers saying it is exploring a sale of nine regional casinos across eight states. Net revenue reached $980 million, up 5% from the same quarter last year. Adjusted EBITDA hit a record $477 million, up 6% year over year. Wall Street keeps a Strong Buy rating on the stock even though shares trade near a 52-week low.
Churchill Downs delivered the biggest quarter in its 150-year history this week. The results came from record wagering and viewership during Kentucky Derby week in May.
Net revenue for the quarter came in at $980 million. That is up $46 million, or 5%, from the same period last year.
Adjusted EBITDA rose to $477 million, a new company record. Net income reached $241 million, up 11% from a year ago.
The Kentucky Derby broadcast on NBC drew a peak audience of 24.4 million viewers. That is up 12% from the year before.
The Kentucky Oaks race, run the day before the Derby, moved into primetime for the first time. It pulled in 2.4 million viewers and set a wagering record for that race.
Nine Casinos Now Under Review
On the same day as the earnings report, Churchill Downs filed papers with regulators. The filing said the company is looking at strategic options for nine wholly owned casinos.
Those properties sit in Florida, Indiana, Iowa, Maine, Maryland, Mississippi, New York and Pennsylvania. A sale of all nine would shrink the company’s regional casino footprint by a wide margin.
The company was careful with its wording. It said there is no guarantee any sale will happen, or on what terms.
No timeline has been set for a decision. Churchill Downs said it will
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