MTR GAMING GROUP ANNUAL OPERATING RESULTS

MTR Gaming Group (MNTG) owns and operates three casino/racetrack enterprises.  Thoroughbred racing, slots, and table games are offered at Mountaineer Casino, Racetrack & Resort in Chester, WV and Presque Isle Downs & Casino in Erie, PA.  Scioto Downs in Columbus, OH is a slots and harness racing combination.  Mountaineer is the only MNTG facility with a hotel.

For the twelve months ending on December 31, 2013, MNTG reported net revenues of $497.8 million, up by 2.2% over 2012.  Operating income in 2013 declined by three percent to $63.9 million and the company incurred a net loss of $9.1 million, following a net loss of $5.7 million in 2012.  MNTG has been buffeted by new competition from casinos in Ohio and Pennsylvania; and abnormally inclement weather during the fourth quarter of 2013 impacted performance.  Even so, MNTG”s common stock price increased in 2013 by 28.8%.

MNTG revenues in 2013 were comprised of $454.6 from gaming, $11.2 million from pari-mutuel commissions, and $40.6 million from food, beverage, and lodging.  Promotional allowances reduced total revenues by $21.3 million.

Mountaineer Casino, Racetrack & Resort in 2013 accounted for 39.6 percent of MNTG’s aggregate net revenues; Presque Isle Downs & Casino contributed 31.2%; and Scioto Downs provided 29.3%.  Scioto is the MNTG property that is nearest to a competing facility, Hollywood Casino (owned by Penn National Gaming) in Columbus, OH, that opened in October 2012 and is less than 12 miles away.  Yet Scioto was the most profitable MNTG operation, with earnings (EBITDA) of $49.4 million compared to $35.8 million for Mountaineer and $23.3 million for Presque Isle.

In the summer of 2014, MNTG plans to complete its merger agreement with Eldorado HoldCo LLC, an owner and operator of gaming properties in Nevada and Louisiana.  MNTG and Eldorado will become wholly-owned subsidiaries of a newly named entity called Eldorado Resorts, Inc.

Of interest is the fact prominent California Thoroughbred owner Mike Pegram is a partner with Eldorado officials on two Nevada casinos.

A version of this article appeared in the Blood-Horse.  Copyright © 2014 Blood-Horse Publications.  Used with permission.

 

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