NEWS
MTR Gaming reports net loss
Posted: Friday, October 31, 2008 6:34 PM
by Frank Angst
While MTR Gaming Group reported increased third-quarter revenues compared with last year, the racetrack and casino owner lost $8.24-million in the third quarter.
MTR Gaming incurred noncash charges aggregating $11.2-million in nonstrategic assets, including a $2.6-million asset impairment loss related to Jackson Harness Raceway and an $8.6-million impairment loss on its 50% joint venture investment in Running Aces Harness Park. The loss amounts to 30 cents per diluted share.
With net revenue increases at both Mountaineer Casino, Racetrack and Resort and Presque Isle Downs, MTR Gaming Group registered a strong third quarter in terms of revenues. Compared with 2007, net revenues for the racetrack and casino owner increased 13% to $131.4-million in the quarter.
MTR Gaming attributed the increase to the addition of table gaming at Mountaineer and increased slot revenues at Presque Isle. Net revenues at Mountaineer increased 15% to $77.3-million while net revenues at Presque Isle jumped 10% to $51.5-million.
“We are pleased with our revenue and EBITDA growth at our two largest properties, which has enabled us to continue to pay down long-term debt by about $13-million in the third quarter and achieve our credit facility coverage ratio requirements,” said MTR Gaming President Ted Arneault.
Arneault will step down at the end of the year and be replaced by Robert Griffin.
Frank Angst is a Thoroughbred Times senior staff writer
