During the first two months of MI Development’s ownership of the previous Magna Entertainment assets, the racing and gambling operations lost $6.2 million, according to the latest quarterly report.
"Overall, the loss is generally reflective of the seasonal nature of our racing and gaming business, lower average daily revenue at many of our racetracks, and costs incurred to pursue alternative gaming opportunities," the MID report said in analyzing the results.
The MID report covered the three-month period ending June 30; MID officially assumed control of Magna Entertainment’s assets effective April 30. MID was the parent of Magna Entertainment, which was reorganized after filing for bankruptcy. Both MID and Magna Entertainment are and were controlled by prominent horse owner and breeder Frank Stronach.
According to the report, quarterly revenue from racing and gambling assets totaled $69.7 million; there were no comparable results since this was the first quarter under MID ownership.
MID chairman Dennis Mills said the results reflected the season nature of the company’s racing operations, with 42 live racing days during the quarter, and other aspects of incorporating Magna Entertainment under the MID umbrella.
"We exceeded our expectations during the second quarter with the level of activity related to the assets transferred from (Magna Entertainment) and which resulted in the closing of our joint venture with Penn National Gaming relating to the Maryland Jockey Club, and the sale of Thistledown, both occurring during the quarter," Mills said in a statement.
Boosted by revenues from the former Magna Entertainment operations, MID reported second quarter revenues of $113.2 million, compared with $55.2 million during the same quarter. Without the benefit of interest and fees from loans that Magna Entertainment had obtained from its parent firm, MID reported its quarterly net income fell to $11.7 million from the year-earlier figure of $31.3 million.