Penn National Gaming posts lower third-quarter revenue

Penn National Gaming Inc., the large racetrack and casino operator, had net income of $8.5 million in the third quarter of 2014 on net revenue of $645.9 million, according to financial statements released Thursday. The net-revenue figure was down 9.5 percent compared with the third quarter of 2013.

Net income was down sharply from the $41.3 million posted for the third quarter of 2013, but comparisons between the two quarters are complicated because the company split off its properties into a separate publicly traded company late last year for tax advantages. Under the new structure, Penn National pays rent on its properties to the real-estate holding company.

Revenue from gambling was $573.2 million in the quarter, down 10.7 percent compared with the third quarter of 2013. Operating expenses in the quarter were essentially even with last year at $623.1 million.

Like most casino companies, Penn National is facing increased competition and stagnant growth at many of its properties. Debt at the company is currently $1.23 billion, compared with $1.05 billion at the end of 2013.

Penn National operates casinos and racetracks in 16 U.S. states and one Canadian province. Its tracks include Penn National in Pennsylvania, Zia Park in New Mexico, Charles Town in West Virginia, and the former Beulah Park in Ohio.