Second Quarter Yields Historic $93.4 Million in Income for Churchill Downs
Churchill Downs Delivers Strong Second Quarter Results
Churchill Downs, a leading player in the U.S. commercial casinos sector, has reported impressive financial performance for the second quarter of 2025. The company's net revenue reached an all-time high of $934.4 million, marking a 5% increase year-over-year.
The growth was primarily driven by a $24.4 million net increase from Churchill's Northern Virginia venues, particularly the November opening of The Rose. Additionally, the company's Kentucky HRM venues contributed to the increase with a $15.3 million boost, thanks to a $4.7 million net increase from its Northern Kentucky venues and a $4.1 million net increase from Louisville venues, among other factors.
The Kentucky HRM increase was further bolstered by a $3.2 million net increase from Churchill's Southwestern venue. However, the growth was partially offset by a $3 million net decrease from five other Virginia venues and a $1.4 million decrease due to increased handle tax.
The Churchill Downs Racetrack also saw a boost, primarily because of record-breaking 2025 spring meet wagering and growth in Derby Week wagering and licensing and sponsorship revenue. Yet, a $1 million decrease was reported, mainly due to lower Derby Week ticketing revenue and higher pari-mutuel taxes.
In terms of Adjusted EBITDA, the second quarter saw a record high of $450.9 million, up $6.1 million or 1%. This growth was primarily due to the increases from Churchill's Kentucky and Virginia HRM venues.
Churchill Downs' strong financial performance was further reflected in its earnings per share (EPS), which were $2.99, slightly beating forecasts of $2.96. As of March 31, 2025, the company showed a solid revenue growth rate of approximately 8.75% year-to-date, outperforming peers in the Consumer Discretionary sector.
The net margin was a commendable 11.94%, indicating effective cost management and profitability. Return on Equity (ROE) and Return on Assets (ROA) were 7.12% and 1.05%, respectively, both above industry averages. However, the company’s debt-to-equity ratio was high at 4.56, pointing to potential financial leverage challenges.
Regarding expansion plans, while specific new casino developments were not detailed, the record-high revenues and earnings suggest successful leveraging of existing assets and ongoing growth initiatives. Churchill Downs has been focusing on expanding its commercial casino footprint and strengthening digital offerings, although no new projects or geographic expansion plans were detailed in the recent reports.
In other news, Churchill Downs announced an agreement to acquire 90% of Casino Salem in New Hampshire for $180 million.
The Kentucky Derby also saw a significant increase in viewership, with 21.8 million viewers, an 8% increase year-over-year. Despite this success, the event's net income attributable to Churchill Downs was $216.9 million, up 4% or $7.6 million compared to the second quarter of 2024.
In summary, Churchill Downs is financially robust with strong profitability and growth metrics in 2025, but it carries a significant debt load. Its expansion in the U.S. commercial casino sector appears steady, backed by solid operational results and market demand, though specific new expansions were not highlighted in the recent information.
- The growth in Churchill Downs' financial performance was not limited to the casinos, as its earnings per share (EPS) for the second quarter also slightly beat forecasts, indicating strong performance in the finance sector.
- Churchill Downs' expansion plans seem to extend beyond the commercial casinos sector, as it has announced an agreement to acquire a significant stake in Casino Salem, a move that suggests an interest in the banking-and-insurance industry.
- The strong second quarter results for Churchill Downs, coupled with its ongoing growth initiatives, indicate a keen focus on investing in business ventures, especially in the real-estate sector, as evidenced by its acquisition of Casino Salem.
