MTR GAMING GROUP Mountaineer revenues offset dip in net earnings

Gaming revenues were up 6 percent at Mountaineer last quarter.
CHESTER, W.Va. (AP) -- MTR Gaming Group said that increased competition in Nevada and costs associated with the purchase of an Ohio track resulted in a 4 percent drop in net earnings during the quarter ended Sept. 30.
A 6.2 percent increase in revenues at the company's Mountaineer Race Track & amp; Gaming Resort in Chester offset the overall earnings decline, MTR said Friday.
Overall, earnings for the 90-day period were nearly $6 million, or 21 cents per share, compared with about $6.2 million, or 22 cents per share, for the same period in 2002.
The company attributed the decline to higher interest expenses, increased depreciation from additional facilities and equipment and July's purchase of Scioto Downs, a track near Columbus.
MTR said Scioto incurred $115,000 in losses between July 31 and Sept. 30.
Revenue decline
Revenues at MTR's Speedway property in North Las Vegas, Nev., fell by $78,000, largely due to increased competition in the area, the company said.
The Nevada Gaming Commission voted 3-2 last month to grant MTR an unrestricted casino license. In granting the license, the commission criticized MTR's management practices.
Ted Arneault, MTR president and CEO, said he was pleased with the company's financial results, especially gains made at Mountaineer.
Between 2002 and 2003, the Northern Panhandle track increased the number of slot machines by 225 to 3,220. Gaming revenues were up 6.2 percent to $69.7 million for the quarter.
Enthusiastic outlook
Mountaineer's continued growth, coupled with anticipated growth at Scioto and planned racing ventures in Pennsylvania, has MTR "enthusiastic about the company's short- and long-term outlook," Arneault said.
MTR has been granted a Pennsylvania license to build a track in Erie, Pa. The license has been appealed by a rival group also hoping to build a track. A court will hear arguments on that case on Dec. 10.
The company also has an interest in a proposed thoroughbred track near Pittsburgh.