Record-setting second quarter, Derby viewership reported by Churchill Downs Inc.
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- Churchill Downs Inc. posted record Q2 revenue of $934M, up 5% from 2024.
- Derby viewership hit 17.5M average, peaking near 22M—highest since 1989.
- Share repurchase hit $250M; tax law changes expected to boost 2025 income.
Revenue generated in April, May and June by Churchill Downs Inc. broke records and increased for the fifth quarter in a row.
Though the running of the 151st Kentucky Derby was generally fruitful for the company, according to its quarterly business results reported July 23, threats of tariffs and uncertain trade policy have stalled several infrastructure projects the company intended to undertake at its namesake racetrack.
The track’s adjusted profit, according to the report and the company’s quarterly earnings call Thursday, declined by about $1 million due to a decrease in ticketing revenue during the week of Derby and higher taxes on betting. Losses were made back in increased revenue from historical racing machine entertainment venues in Kentucky and Virginia.
On the company’s earnings call Thursday morning, Churchill Downs Inc. President and CEO Bill Carstanjen said the quarter was “another strong performance,” adding, “the best is still to come.”
The Louisville-based company set an all-time record net revenue of more than $934 million, up 5% compared to the same quarter last year. Second-quarter revenues were boosted by increases in income from historical racing machines, according to the report.
Quarterly revenue for the entertainment venues was approximately $541 million for the quarter, with locations in Western Kentucky and Northern Virginia seeing the biggest gains.
Due to higher amounts of betting during Derby week, wagering revenue for the quarter increased $8.5 million. The increase in quarterly revenue is also due in part to its digital wagering division.
The majority of Carstanjen’s remarks during the Thursday earning call set the scene for how the company intends to build on its already profitable streams of revenue.
Churchill Downs Inc. has its sights set on five targets for long-term growth from Derby week including infrastructure improvements at the track, different pricing for tickets during race days leading up to the fastest two minutes in sports and new broadcasting rights that will put next year’s Kentucky Oaks in NBC prime time.
The 151st Kentucky Derby took place during the second quarter and the company said this year’s Run for the Roses had the highest average viewership.
More than 17.5 million watched, an increase of 6% from the prior year. The report said peak viewership was close to 22 million, up 8% from 2025 and the highest number of viewers since 1989, the 115th running of the race when Sunday Silence won.
During the second quarter, Churchill Downs said instead of a $1 billion project to renovate the infield and add new seats and suites it would take up a $30 million update to some of its exclusive experiences to Millionaires Row, the dining room at the finish line and the buildings at the first turn.
On the earnings call, Carstanjen said those projects were on track to be on budget and complete by next year’s Derby. The larger project was put on hold in April due to increased uncertainty about tariffs raising construction costs.
The company also announced this week its board of directors approved a $500 million share repurchase program that replaces a similarly authorized program of the same amount from March. During the second quarter, the company said it repurchased more than 2.5 million shares at a total cost of $250 million.
Provisions in the sweeping tax and spending bill passed by Congress July 4 are retroactive. Changes in the ‘Big, Beautiful Bill’ are anticipated to have a favorable impact on the company’s income this year, the report and CFO Marcia Dall said.
Part of that is due to the reinstatement of a 100% tax deduction that allows businesses to write off the cost of property and other assets in the first year they are purchased or used, rather than spreading out the deduction over time.
As a result of another business tax from the bill that adjusted the cap on how much could be deducted from expenses accrued from interest, Churchill Downs said it will begin to utilize more than $91 million to reduce the amount of taxes it may owe in the future.
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