Churchill Downs Inc. Looking Forward to Derby

After a record-breaking first quarter for Churchill Downs Inc., company officials expect more good news as one executive predicts record revenues from Kentucky Derby Presented by Yum! Brands (gr. I) week.

While CDI tied much of its first quarter success to its newest acquisition, Big Fish Games, an online and mobile games company, its second quarter appears well-positioned behind its Kentucky Derby week pillar. Last year Churchill Downs Inc. estimated profits between $7.5 million and $9.5 million from Derby week. 

Noting a weather forecast calling for sunny skies and 70-plus degree temperatures, along with a full field of 20 horses that many are calling the most competitive in years, CDI chief financial officer Bill Mudd said during an April 28 conference call with investors and analysts that he's expecting a strong performance.

"Ticket sales and sponsorships are very strong," Mudd said. "Everything is falling in line for a record Derby."

CDI chief executive officer Bill Carstanjen said that while pari-mutuel handle on U.S. races declined 5.18% in the first quarter, Derby handle has historically bucked such trends and continued to fare well. Also, the company has continued to develop other revenue streams through sponsorships and ticket sales for Derby and the Longines Kentucky Oaks (gr. I).

"The Kentucky Derby is much, much more than horse racing. While horse racing continues to face challenges, the Kentucky Derby weekend is something else entirely," Carstanjen said. "We will let the post-Derby press release that we put out each year speak for itself, but suffice it to say that we're looking forward to the 141st Kentucky Derby."