Canterbury Park Reports Net Loss of $327,406 for Q2 2025 Amid Revenue Decline

Canterbury Park Holding Corporation reported a net loss of $327,406, or $0.06 per share, for the three months ended June 30, 2025, compared to a net income of $338,286, or $0.07 per share, for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net loss of $626,616, or $0.12 per share, down from a net income of $1,336,440, or $0.27 per share, in the prior year. Total net revenues for the second quarter of 2025 were $15.67 million, a decrease of 3.3% from $16.20 million in the same quarter of 2024. For the first half of 2025, revenues fell by 4.9% to $28.81 million from $30.30 million in 2024.

The decline in revenue was attributed to decreased performance across several segments. Casino revenue decreased by 3.6% to $9.49 million for the second quarter, and by 6.1% to $18.68 million for the first half of the year, primarily due to increased competition and a lower average collection revenue rate. Pari-mutuel revenue also saw a significant drop, down 12.9% for the second quarter and 11.4% for the first half, largely due to fewer live race days and lower simulcast revenues. However, other revenue sources, including admission fees and corporate sponsorships, increased by 11.4% and 10.5% for the respective periods, reflecting successful large-scale events.

Operating expenses increased slightly, with total operating expenses rising by 1.0% for the second quarter and 1.1% for the first half of 2025. Notably, purse expenses decreased by 14.8% and 12.8% for the respective periods, reflecting lower casino and pari-mutuel revenues. Salaries and benefits increased due to annual wage adjustments, while advertising and marketing costs surged by over 40% as the company implemented new promotions to attract customers.

In terms of strategic developments, Canterbury Park continues to focus on its real estate initiatives, particularly the Canterbury Commons project, which aims to develop underutilized land surrounding the racetrack. The company has recorded a Tax Increment Financing (TIF) receivable of approximately $19.82 million as of June 30, 2025, reflecting ongoing infrastructure improvements. The company believes that future tax revenues will exceed development costs, supporting its optimistic outlook for the project.

Looking ahead, Canterbury Park anticipates that its ongoing development projects and strategic initiatives will enhance its operational performance. However, the company acknowledges the challenges posed by competition and changing market conditions. Management remains committed to monitoring these factors closely and adapting its strategies to ensure long-term growth and sustainability.