Churchill Downs Experiences Record-Breaking Financial Performance in Second Quarter
The iconic Churchill Downs, renowned for hosting the Kentucky Derby, recently declared an unprecedented financial performance in the second quarter of 2022. Their total earnings skyrocketed to an astounding $582.5 million, a significant increase compared to the corresponding period in the previous year.
This remarkable accomplishment was driven by the complete return of spectators to the 148th Kentucky Derby. The event witnessed not only unparalleled wagering activity but also emerged as the most lucrative week in its history. Consequently, the quarter concluded with an unprecedented adjusted EBITDA of $291.2 million.
Further amplifying their triumphs, Churchill Downs executed a shrewd business transaction by divesting a portion of undeveloped land adjacent to their Calder Casino estate to Link Logistics, a property development firm. This divestiture generated an additional $291 million and holds the potential to stimulate new construction that could prove advantageous to the racetrack in the long term.
In a significant strategic maneuver, Churchill Downs also completed the acquisition of Peninsula Pacific Entertainment (P2E) for a substantial sum of $2.48 billion. This calculated acquisition serves to broaden their footprint within the gaming and leisure sector.
The renowned Churchill Downs Incorporated is poised to purchase the Colonial Downs Racetrack situated in New Kent, Virginia. This acquisition encompasses six supplementary off-track wagering establishments within the Commonwealth. Furthermore, the agreement entails assuming management of both the del Lago Resort & Casino located in Waterloo, New York, and the Hard Rock Hotel & Casino in Sioux City, Iowa.
Previously under the ownership of Peninsula Pacific Entertainment, the transfer of these assets to Churchill Downs hinges upon the authorization of the New York State Gaming Commission and the Iowa Racing and Gaming Commission. The finalization of this transaction is anticipated before the conclusion of 2022.
