Magna Entertainment Corp. increased revenue 59.7% in the third quarter but the company's losses continued to widen.
Magna reported revenue of $104.5 million for the three months ending Sept. 30, an increase from $65.4 million during last year's corresponding quarter. Magna president Jim McAlpine attributed the gains to the acquisitions of Flamboro Downs, Lone Star Park, the Maryland Jockey Club, Palm Meadows, and Horse Racing TV.
However, those gains were offset by "lower average daily attendance and decreased on-track wagering activity at most of our other facilities," the company said in a statement. Magna suffered a net loss of $15.4 million, or 14 cents a share during the quarter. During last year's third quarter Magna lost $9.7 million, or nine cents a share.
Magna also announced chief operating officer Roman Doroniuk has stepped down effective Oct. 30.
"We had expected to make greater progress with respect to increasing revenues and reducing costs by this point in time," McAlpine said. "In view of these results, we have developed an aggressive multi-part action plan aimed at improving our financial results."
Earnings before interest, taxes, depreciation, and amortization were a negative $12.6 million, compared to a loss of $11.2 million in the prior year period.