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MTR Gaming Losing Its Bet to New Ohio Competitors
CHESTER, W.Va. -- Competition from the expansion of gambling in Ohio contributed to a net loss of $800,000, or three cents per share, at MTR Gaming Group Inc., owner/operator of Mountaineer Casino, Racetrack & Resort here and Presque Isle Downs in Erie, Pa. The company's new Scioto Downs gambling operation in Columbus, however, continus to exceed expectations, executives said.
By comparison,, MTR reported a net loss of $3.2 million, or 11 cents per share, the first quarter of 2012.
Net revenue the first quarter grew 14.3%, including revenues of $36 million at Scioto Downs, which is in its third quarter of operations. Adjusted earnings before interest, taxes, depreciation and amortization for the first quarter were $25 million, an increase of 21.9% from the year-ago period.
“Our new Scioto Downs gaming facility led to strong double-digit revenue and adjusted EBITDA growth in the first quarter,” said Jeffrey J. Dahl, president and CEO in aprepared statement. “Scioto Downs continues to maintain a significant market share of the Columbus slot market.”
Total net revenues were $123.3 million, an increase of 14.3% compared to the same period of 2012. But net revenues at Mountaineer fell 15.6% to $49.8 million in the first quarter compared to $59 million in the same quarter of 2012. Revenues from slots and table games fell $6.3 million and $1.8 million, respectively, compared to the same quarter a year ago. The decrease was attributed to bad weather and the introduction of gaming competition in Ohio.
Net revenues at Scioto Downs were $36 million compared to $100,000 the first quarter of 2012. The increase was attributed to the opening of the video lottery terminal gambling site June 1, 2012.
Net revenues at Presque Isle Downs & Casino decreased 23.1% to $37.6 million compared to $48.9 million the first quarter of 2012. Revenues from slots and table games fell $8.7 million and $1.8 million, respectively, compared to the same quarter of 2012. The decrease is was attributed to bad weather and the introduction of gambling competition from Ohio.
“Looking ahead, we will continue our focus on maintaining our margins and pursuing operating efficiencies across our properties, while looking to boost our top line through various marketing initiatives,” Dahl stated. “In addition, we look to spend approximately $20 million in capital expenditures during 2013 to improve our guests’ gaming and entertainment experience -- including the renovation of hotel rooms at Mountaineer Park as well as investing in the gaming floors at our properties to improve guest interaction and other facility improvements.”
Published by The Business Journal, Youngstown, Ohio.
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