Derby Week Powers CDI, New Seating Plans for Churchill

Churchill Downs Inc. reports increased Kentucky Derby (G1) week revenue of $37.6 million powering the company to second quarter records for net revenue and adjusted earnings in 2024 and also reported new seating plans for its flagship track in Louisville, Ky.

In its report of business results released the evening of July 24, for the months of April-June CDI noted net revenue reached $890.7 million for the quarter, up nearly 16% from last year. Adjusted earnings (EBITDA) reached $444.8 million, which is up 22% from the same three months of 2023.

The company reported second quarter "net income attributable to CDI" of $209.3 million, which is up 46% year over year.

The Louisville, Ky.-based company reported that second quarter revenue for its live and historical racing segment increased $82.2 million behind a $53.8 million increase at Churchill Downs racetrack, "which includes a $37.6 million increase due to a record-breaking Derby week, a $17.4 million increase attributable to growth at our Virginia properties ... and a $10.3 million increase attributable to growth at our Kentucky (historical horse racing) properties and a $0.7 million increase at our other live and historical racing properties."

A milestone Derby spurred much of the success.

"Churchill Downs racetrack ran the 150th Kentucky Derby with all-time record all-sources handle for the Kentucky Derby race, Kentucky Derby day program, and Kentucky Derby week races, and with (an) all-time Derby week contribution to adjusted EBITDA," the company said in Wednesday's release.

The company's TwinSpires segment, which includes its advance-deposit wagering platform of the same name, saw second quarter revenue spike by $20.8 million year over year, that improvement was largely attributable to a $14.7 million increase from its Exacta Systems, a historical horse racing technology provider that CDI completed a purchase of in August 2023.

The TwinSpires ADW platform saw a, "$4.3 million net increase in horse racing revenue primarily due to increased affiliate wagering handle partially offset by a decline in TwinSpires retail horse racing handle due to shifts in race days at other tracks and market access."

New Seating

While it's not the massive project that saw stadium seating added in the first turn and a new paddock in recent years at Churchill Downs, CDI also announced Wednesday an $80-$90 million renovation to the existing grandstand at Churchill Downs racetrack that will update ticketed seating options while significantly improving and adding to the amenities available for all guests in the grandstand area.

Construction on the Grandstand Club and Pavilion is scheduled to begin in August with completion planned in time for the 151st Kentucky Derby in May 2025.

The renovation of the Grandstand Club will transform existing outdoor aluminum bleachers into a combination of 8,300 new comfortable seating varieties. Updated seating options will include covered and uncovered stadium-style seats as well as rail boxes along the dirt track's outer rail that will offer a "trackside" seating experience where guests will be able to closely watch horses break from the Kentucky Derby starting gate. First-floor amenities for the Grandstand Club will include new and upgraded permanent concessions, bars, and wagering windows.  

The project will also considerably improve and add amenities for 2,800 guests in the existing third floor box seats under the Starting Gate Suites. The Grandstand Pavilion will create a more upscale social environment by converting the existing second-floor amenity area into a covered outdoor garden environment with new concessions, bars, and wagering windows. Expansion to the second floor will create additional space for overall guest circulation and add an outdoor balcony for added dining seats. A new stately entrance to the Grandstand Pavilion will unify the surrounding exterior architecture. 

"Like all of our recent enhancements at Churchill Downs, the renovation of the grandstand represents our commitment to providing unique guest seating options while honoring the historic significance of the property in order to achieve a world class sports and entertainment experience for our guests," said Mike Anderson, president of Churchill Downs.