Churchill Downs generated record results in the second quarter ended June 30, 2with record net revenue of $582.5m compared to $515.1min second quarter 2021, record net income of $339.3m compared to $108.3m in second quarter 2021 and eecord Adjusted EBITDA of $291.2m compared to $233.3m in second quarter 2021.
The company’s live and Historical Racing segment delivered record revenue and Adjusted EBITDA, with Adjusted EBITDA up 67 per cent compared to the second quarter of 2021. The results were massively boosted by the 148th Kentucky Derby with record Derby Week all-sources handle for Churchill Downs Racetrack, record Derby Week Adjusted EBITDA, and debuted the new Homestretch Club
The TwinSpires segment delivered Adjusted EBITDA of $33.9m, up 38 per cent compared to the second quarter of 2021.
Net revenue for live racing increased $85.4m due primarily to a $69.3m increase at Churchill Downs Racetrack due to the running of the Kentucky Derby in 2022 without capacity restrictions that were in place in 2021, an $8.5mincrease at Oak Grove Racing, Gaming and Hotel, a $4.3m increase from Derby City Gaming, a $2.9m increase at Newport Racing & Gaming, and a $0.4m increase at Turfway Park. The historical racing machine (HRM) properties benefited from the elimination of the capacity restrictions that were in place during the second quarter of 2021 and overall continued growth in the businesses.
Gaming net revenue decreased $1.5m primarily due to a decrease of $4.6m at Harlow’s and a $4.4m decrease at Riverwalk as a result of the current economic conditions, competitive pressures, and a mask mandate at Harlow’s that was discontinued in early June 2022. These decreases were partially offset by a $4.8m increase at Oxford due to the lifting of restrictions that were in place during the prior year quarter, a $2.1m increase at Fair Grounds from the 2022 Jazz Festival that more than offset the decline in Fair Grounds Slots revenue due to current economic conditions and the ongoing closure of our Houma off-track betting facility, and a $0.6m net increase in all other properties.