Magna has expected off quarter

Magna Entertainment Corp., the owner of Santa Anita, Gulfstream Park, and five other Thoroughbred tracks, had a net loss of $6.2 million in the third quarter of 2001, or 7 cents a share, the company said during a conference call on Monday.

Revenues for the quarter were $65.8 million, compared with $50.2 million in the third quarter last year, when net loss was $5.1 million, or 6 cents a share.

Magna officials said that the company is expected to lose money during the third quarter because many of its tracks do not run live during the late summer and early fall months.

Even with the third-quarter loss, Magna had net income through the first nine months of 2001 of $18.5 million, compared with $9.6 million in net income during the first nine months of 2000, the company said. Revenues for the first nine months increased to $423.6 million from $339 million last year.

During the conference call, chief executive officer Jim McAlpine said that Magna officials are in negotiations to reach development deals at several racetracks, including Santa Anita and Golden Gate Fields in California and Gulfstream Park in Florida. He said the the plans would include both "entertainment and retail" development.

McAlpine and chief financial officer Graham Orr also said the company planned to offer telephone wagering in California through its Pennsylvania-based Call-A-Bet system beginning Jan. 1, when a law permitting telephone betting in the state is expected to take effect.