Churchill Downs posts record Q2 revenue amid online sports betting exit
Racing operator buoyed by Kentucky Derby and land sale as TwinSpires brand powers down
Churchill Downs posted a record net revenue of $582.5m in the second quarter of 2022 as the racing and gaming operator was buoyed by a big Kentucky Derby and the closing of a Florida land sale.
The record quarter comes amid Churchill Downs opting to shutter its TwinsSpires online sports betting brand, a decision it first announced in February.
The $582.5m in revenue represented a 13.1% year-over-year (YoY) increase from $515.1m in the same period last year.
That gave way to a record $339.3m in net income – more than a three-fold jump from the $108.3m it generated in the second quarter of 2021.
Churchill Downs also benefited from a record Derby Week all-sources handle for the 148th Run for the Roses, which took place on May 7. Total handle for Churchill Downs Racetrack was $625.6m for the quarter.
The operator also received a major boost thanks to the closing of a 115.7-acre land sale near Calder Casino in South Florida, for which it received $291m.
Overall, adjusted EBITDA came in at a record $291.2m for the quarter, up nearly 25% from $233.3m during the same period in 2021.
TwinSpires, which formally shut down two weeks prior to the June 30 close of the quarter, was the only part of the business which didn’t see growth.
Net revenue for the online sports betting brand was $138.5m, a $4.1m drop from the second quarter of 2021.
TwinSpires had been operational in eight US states, including New Jersey and Pennsylvania, but failed to generate significant momentum in any of them.
Churchill Downs will continue to feature the TwinSpires brand across its retail sportsbooks.