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Churchill Downs Incorporated reported record second-quarter revenue and adjusted EBITDA on the back of another strong Kentucky Derby week and growth at its historical racing machine venues, while separately agreeing to take full ownership of wagering technology provider United Tote.
Second-quarter net revenue rose 5% year over year to a record $980 million, while adjusted EBITDA increased 6% to an all-time high of $477 million. Net income attributable to the company climbed 11% to $241 million.
According to Churchill Downs, its quarterly performance was driven by growth during Kentucky Derby Week, including higher wagering, media rights, sponsorship, ticketing and licensing revenue.
The Live and Historical Racing segment also benefited from continued expansion of historical racing machine venues in Kentucky and Virginia, with recent property investments contributing to higher revenue and earnings.
“Our flagship Kentucky Derby event and our historical racing machine venues continue to deliver exceptional results, demonstrating the strength of our unique portfolio of racing and gaming assets,” Chief Executive Officer Bill Carstanjen said.
The company remains focused on expanding its historical racing footprint while continuing to invest in the long-term growth of its racing operations, CDI management said.
Separately, Churchill Downs has agreed to acquire the remaining 49% stake in United Tote from NYRA Content Management Solutions, restoring full ownership of the pari-mutuel wagering technology provider.
The transaction is expected to close on or around August 5, subject to customary closing conditions.
As part of the deal, the New York Racing Association extended its agreement with United Tote through 2035, under which the company will continue providing pari-mutuel wagering technology and totalisator services.
Carstanjen said the acquisition would strengthen Churchill Downs’ position in racing technology and secure a long-term relationship with NYRA.
Churchill Downs said full ownership of United Tote would strengthen its ability to invest in wagering technology while simplifying its ownership structure. United Tote provides pari-mutuel wagering systems and services to racetracks, off-track betting facilities and advance-deposit wagering operators across North America.