In addition, the prestigious racecourse recorded a significant income increase of $231.3m from Q2 2021.
The Kentucky Derby was back in full swing this year for its 148th iteration – the event marked a record in handle for Churchill Downs Racetrack, and the highest Derby week adjusted EBITDA Churchill Downs has ever achieved.
Not only would this explain the company's significant income increase, but also its record adjusted EBITDA of $291.2m compared to $233.3m for Q2 2021.
Aside from its record second-quarter results, Churchill Downs boosted its income through the sale of 115.7 acres of excess land near Calder Casino for $291m.
The sale was made to Link Logistics, a Blackstone portfolio company. Link Logistics is a real estate developer, and its purchase of Churchill Downs land will likely see greater infrastructure built between the Churchill Downs racecourse and Calder Casino – heightening the prospect of even greater footfall at racing events and increased revenue in the future.
Moreover, Churchill Downs has completed the acquisition of Peninsula Pacific Entertainment (P2E) for a significant $2.48bn.
Per the deal, Churchill Downs will acquire the Colonial Downs Racetrack in New Kent, Virginia, alongside an additional six racing venues across the state, the del Lago Resort & Casino in Waterloo, New York and the operations of Hard Rock Hotel & Casino in Sioux City, Iowa.
The company notes its ownership of the former P2E properties shall depend on licensing approvals from the New York State Gaming Commission, and the Iowa Racing and Gaming Commission. The transaction is expected to close before the end of 2022, however.
