Churchill Downs upward financial ascent continued Wednesday with the announcement of record earnings during the second quarter.
The operator generated record net revenue of $934.4 million for the quarter, up $43.7 million year-over-year, or 5%. Net income attributable to Churchill Down was $216.9 million compared to the second quarter of 2024, up 4% or $7.6 million. Adjusted EBITDA was $450.9 million, another record, and up $6.1 million or 1%. It also produced the highest peak viewership for a Kentucky Derby, 21.8 million, an increase of 8% year-over-year.
Highlights include:
- On July 14, Churchill Downs announced an agreement to acquire 90% of the outstanding equity interests of Casino Salem in New Hampshire with the right to develop a charitable gaming, entertainment, and dining destination, for $180 million.
- On July 22, the Churchill Downs board approved a $500 million share repurchase program.
- The second quarter ended with net bank leverage of 4.2x and returned $250.4 million of capital to shareholders through share repurchases.
Second-quarter revenue from live and historical horse racing increased $50.7 million primarily because of a $23.8 million increase from Churchill’s Virginia HRM venues; a $22 million increase from its Kentucky HRM venues; and a $4.9 million increase from Churchill Downs Racetrack.
The Virginia HRM increase was primarily because of a $24.4 million net increase from Churchill’s Northern Virginia venues, primarily from the November opening of The Rose and a $3.4 million increase from the May expansion at its Richmond venue that was partially offset by a $4 million net decrease from five other Virginia venues.
The Kentucky HRM increase was primarily because of a $10 million net increase from Churchill’s Western Kentucky venues; a $4.7 million net increase from its Northern Kentucky venues; a $4.1 million net increase from Louisville venues; and a $3.2 million net increase from Churchill’s Southwestern venue.
The Churchill Downs Racetrack increase was primarily because of record-breaking 2025 spring meet wagering and growth in Derby Week wagering and licensing and sponsorship revenue, partially offset by lower Derby Week ticketing revenue.
Adjusted EBITDA in the second quarter increased $17.3 million primarily because of a $15.3 million increase from Churchill’s Kentucky HRM venues and a $3 million increase from Virginia HRM venues, partially offset by a $1 million decrease at Churchill Downs Racetrack.
The Kentucky HRM increase was primarily because of a $5.2 million net increase from its Louisville venues, a $4.3 million net increase from Northern Kentucky venues, a $3.6 million net increase from Western Kentucky venues, and a $2.2 million net increase from the Southwestern venue.
The Virginia HRM increase was primarily because of a $5.6 million net increase from Northern Virginia venues and a $1.8 million increase from the May expansion at Churchill’s Richmond venue, partially offset by a $3 million net decrease from five other Virginia venues and a $1.4 million decrease from increased handle tax.
The Churchill Downs Racetrack decrease was primarily because of lower Derby Week ticketing revenue and higher pari-mutuel taxes partially offset by increased wagering and licensing/sponsorship revenue.
