US Magna Entertainment Reports Poor Performance - 05-12-08

The future of the company, which is also behind the US betting service Xpressbet, as well as the European gambling site, Magna.com, does not look very good as Magna Entertainment's management struggles to grasp the latest numbers. With an accumulated deficit of $556.5 million and debts of $220 million due to mature at the end of May (and doubling within a year), it remains to be seen how the company will pull itself out of its present rut, although its CEO remains fairly optimistic about the future.

One of the main sources of income for Magna Entertainment, its horse racetrack sector, was badly affected by poor weather conditions in the past quarter - typically the most profitable time of the year - after nearly 55 days were lost.

The Chairman and Interim CEO of Magana Entertainment, Frank Stronach said of the situation: "We are very disappointed with our first quarter operating results, some of which can be attributed to weather and track drainage issues at Santa Anita Park beyond our control, and some of which reflect short term disruptions as we continue to build our Gulf Stream commercial joint venture with Forest City. I remain fully committed to implementing the company's previously announced debt elimination plan, and to seeing the operating results drastically improved. I remain optimistic about MEC's medium term prospects." 

Other Articles: