Churchill Downs had nearly $50 million in additional revenue in the second quarter of this year compared to last year’s second quarter, according to financial documents released by the track’s parent company on Wednesday night, bolstered by what Churchill Downs Inc. called a “record” Kentucky Derby week and additional live racing dates at the track. Churchill Downs had net revenue of $228.0 million in the second quarter, compared to $178.3 million in the second quarter of last year, according to the documents. On a conference call on Thursday morning, Churchill’s chief executive officer, Bill Carstanjen, credited “strong growth in ticketing and sponsorship revenue along with record wagering” during Derby week this year for the jump. For this year’s Derby, Churchill unveiled a $200 million paddock renovation that created nearly 7,000 new ticketing options at the track, with each option costing between $7,000 and $16,000 on Derby day. The renovation was one of twenty that Churchill has undergone in the past two decades to fully capitalize on the popularity of the Kentucky Derby and the run-up dates to the race. Carstanjen said that Churchill has not yet fully determined how to leverage the new paddock area, which he called the track’s “foundation for further innovation and monetization.” He said recent revenue growth from Derby week is “led by our ticketing segment.” “We still have much to learn,” Carstanjen said. During the quarter, Churchill held 17 more live racing dates in June than last year, when it canceled the remainder of its spring meet and moved live racing to Ellis Park, a track owned by its parent company, after June 4. The meet was canceled after 13 horses died during the spring meet, most of them concentrated around Derby week, creating a hostile public relations environment for the track. According to the financial statements, Churchill’s Western Kentucky operations, which includes Ellis Park, had $6.1 million in net revenue during the second quarter, which ended on June 30, compared to $9.4 million in last year’s second quarter. The Churchill results contributed to record overall second-quarter results for the company. Total net revenue in the quarter was $890.7 million, up 15.9 percent over net revenue in last year’s second quarter of $768.5 million. Total operating expenses jumped 3.2 percent, from $542.9 million in last year’s second quarter to $560.7 million in the second quarter this year. Net income was $209.3 million for the quarter, up 46 percent compared to net income of $143 million in second quarter of last year. Revenue for TwinSpires, Churchill’s account wagering operation, was up 10.4 percent in the quarter, from $137.4 million last year to $151.7 million this year. Expenses rose 10.6 percent, from $80.7 million to $89.3 million. In a note accompanying the financial statements, Churchill said that net revenue at TwinSpires benefited from a $14.7 million increase due to a wagering management system the company has deployed after purchasing Exacta, a data-management company that also provides services to its historical horse-racing machines at properties around the U.S. The note said that there was a “decline in TwinSpires retail horse racing handle due to shifts in race days at other tracks and market access.” Churchill’s “gaming segment,” which includes casinos that do not operate historical horse-racing machines, had net total revenue of $274.4 million in the quarter, up 10.7 percent compared to $247.9 million in the second quarter last year. Churchill opened a new casino in Terre Haute, Ind., during the quarter, which provided new revenue of $33.9 million, according to the financial statements. Carstanjen, on the conference call, said that results overall at the company’s casino properties during the quarter were “relatively flat” but had a “fair amount of stability in general.” Total revenue for “live and historical racing,” which includes all live racing operations at the company’s tracks and the results from historical horse-racing operations in Kentucky, Virginia, and elsewhere, was $490.2 million, up 20.1 percent in the quarter. The company’s strong results in Virginia have led Churchill officials to target growth in that state, with Churchill planning to increase its HRM devices in the state from 2,750 to 5,200, the maximum amount allowed by law, by the end of 2025, Carstanjen said. Under Virginia law, Churchill is required to run one live race date for each 100 machines it operates, meaning that Churchill will need to run 52 live racing dates at its Colonial Downs in 2026. The track is running 27 live race dates this year, and the expansion of live racing may mean either extending the summer meet into the fall or adding a new meet in the spring and cooperating with other regional tracks on creating a mid-Atlantic circuit. At Churchill itself, the company on Wednesday night announced two renovation projects focused on the far end of its grandstand, near the top of the stretch. The two projects, which will reduce the available seating in the area from 10,000 to 8,300, will cost $80-90 million and are expected to be completed by the 2025 Derby. Carstanjen said on the conference call that the renovations will entail converting “low-end” ticketing options into “premium hospitality areas.” Carstanjen also said that Churchill expects to announce additional renovation projects later this year. He said that the company is currently exploring options for the track’s infield. :: Want to learn more about handicapping and wagering? 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