The iconic Churchill Downs horse racing venue witnessed an unprecedented financial performance in the second quarter of 2022, amassing an impressive $582.5 million in earnings and finalizing the purchase of P2E.
Known for hosting the Kentucky Derby, Churchill Downs declared a net income of $582.5 million for the second quarter of 2022. This signifies a substantial growth of $67.4 million in comparison to the corresponding period the previous year, establishing a new peak.
Impressively, the legendary racetrack also documented a remarkable 231.3% surge in earnings compared to the second quarter of 2021.
This year marked the 148th Kentucky Derby, with the event resuming full attendance and achieving the highest all-sources betting and Derby Week adjusted EBITDA for Churchill Downs. This clarifies not only the significant leap in earnings but also the record adjusted EBITDA of $291.2 million, contrasted with $233.3 million in the second quarter of 2021.
Adding to its exceptional second quarter, Churchill Downs also generated an extra $291 million from the sale of 115.7 acres of undeveloped property adjacent to Calder Casino.
The land was acquired by Link Logistics, a real estate development firm owned by Blackstone. Link Logistics’ purchase of the Churchill Downs property could result in the creation of enhanced infrastructure connecting Churchill Downs and Calder Casino, increasing participation in racing events and producing additional income in the future.
Moreover, Churchill Downs successfully concluded its acquisition of Peninsula Pacific Entertainment (P2E) for $2.48 billion.
The Churchill Downs company is broadening its equestrian racing domain! They’ve reached an agreement to acquire the Colonial Downs racing facility located in New Kent, Virginia. Furthermore, the transaction encompasses six additional racing locations throughout Virginia, the well-known Del Lago Resort and Gaming establishment in Waterloo, New York, and even extends their reach into the Iowa market through the acquisition of the Hard Rock Hotel and Casino in Sioux City. Naturally, there are regulatory hurdles to overcome – they require approval from various gaming boards in New York and Iowa before assuming full control. Should everything proceed without a hitch, the transaction is anticipated to conclude by late 2022.
