Magna loses $25M in year's second quarter

Magna Entertainment Corp., the largest racetrack operator in North America, lost $25.5 million in the second quarter of 2004, principally as a result of a $26.7 million non-cash charge to reflect the lower value of several of its properties.

The loss reversed the results from the second quarter of last year, when Magna had net income of $800,000. For the first six months of 2004, Magna has had net income of $4.4 million, compared with net income of $13.5 million in the first six months of 2003.

Revenue in the quarter was up 5.4 percent, from $188.3 million to $198.5 million. Magna had income of $16.5 million in the quarter from the sale of several real estate properties. Last year, Magna did not have income from real estate sales in the second quarter.

Magna's $26.7 million writedown was related to its redevelopment of Gulfstream Park, which was torn down earlier this year. Magna officials have said they plan to run the 2005 meet under tents. A new grandstand is planned for 2006.