Magna Entertainment Corp. lost $46.46-million during the first three months of 2008, which usually is the troubled company’s most profitable quarter.

Last year, Magna posted $2.47-million in net income during the first quarter.

Revenue declined by 9.1%, from $254.2-million in January through March of 2007 to $231-million in the same period this year.

Revenue from Magna’s California operations dropped $17.2-million to $93.61-million, which the company attributed to the loss of eight live racing dates at Santa Anita Park because of rain and racetrack drainage issues. Florida operations produced $1.5-million less revenue, which the company said was a result of decreased attendance and live handle at Gulfstream Park.

Magna’s overall handle declined 9.7%, from $202.34-million in the first quarter of 2007 to $182.90million in the same period this year.

Substantial debt is a continuing burden that cost Magna $16-million in interest during the first quarter. The company launched a debt-elimination plan in September that could include the sale of Great Lakes Downs, Remington Park, Thistledown, and its interest in Portland Meadows.

"We are very disappointed with our first-quarter operating results, some of which can be attributed to weather and track drainage issues at Santa Anita Park beyond our control, and some of which reflect short-term disruptions as we continue to build out our Gulfstream Park commercial joint venture with Forest City,” Magna Chairman Frank Stronach said. “I remain fully committed to implementing the company's previously announced debt-elimination plan and to seeing the operating results dramatically improved. I remain optimistic about [Magna’s] medium-term prospects".

An advisory in the company’s quarterly report described a continued substantial doubt over its ability to sustain operations.