By Emon Reiser

Shares of Churchill Downs gained after the horse-racing company said it would further invest in its live sporting events, seeing momentum in what its executives call the experience economy.

The stock climbed about 7.7%, to $95.77, midday Thursday. Despite the intraday gains, shares are down 16% year to date.

The Louisville, Ky., company after the bell Wednesday reported a profit of $83 million, or $1.16 a share, compared with $77 million, or $1.02 a share, in the year-ago quarter.

Stripping out one-time items, adjusted earnings per share were $1.21 for the quarter. Analysts polled by FactSet expected $1.01 in adjusted earnings per share.

Revenue rose 3% year over year, to $663 million. Analysts polled by FactSet expected $661.2 million.

For the quarter ended March 31, sales from the company's live and historical racing business grew 8.8%, to $297 million. Sales from its wagering services ticked up nearly 2%, to $109 million, while its gaming business posted a 2.3% decline, to $257 million.

Churchill Downs is doubling down on its live sports events, this week inking a deal to acquire the intellectual property and all trademarks associated with thoroughbred races Preakness Stakes and Black-Eyed Susan Stakes for $85 million from a subsidiary of the Stronach Group.

The company said it expects that Derby Week, starting April 25, and the Kentucky Derby, on May 2, will be fully sold out.

"Our partners recognize that activations at live sporting events have become more coveted, given the significant growth in the experience economy," Chief Executive Bill Carstanjen said Thursday on a call with investors.

"Over 152 years, the Kentucky Derby has become an iconic event in sports and entertainment," Carstanjen said. "We are going to build on that legacy by continuing to expand its reach and relevance for future generations," he added.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

April 23, 2026 12:50 ET (16:50 GMT)

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