Binion’s owner announces 47 percent decline in profit

Thursday, July 21, 2005 | 10:54 a.m.

MTR Gaming, the owner of Binion's Gambling Hall and Hotel in downtown Las Vegas and of the Speedway casino in North Las Vegas, reported a 47 percent decline in profit in the second quarter compared with the same period last year.

Profit was $1.6 million or 6 cents per share -- half of what analysts expected the company to earn in the second quarter. That compares with $3 million or 10 cents per share a year ago.

The company blamed the decline on lower than expected revenue at its flagship property, Mountaineer Racetrack and Gaming Resort in Chester, W.V. Mountaineer faced increased competition from video lottery terminals that have proliferated outside of casinos in West Virginia. But Chief Executive Ted Arneault said the number of slot parlors and the revenue they are generating is declining as the novelty of the machines wears off.

Revenue rose 18 percent to $97.8 million.

Binion's accounted for $15.7 million of total revenue. The property earned $763,000 in earnings before interest, taxes, depreciation and amortization -- a key indicator of casino profit.

The transition of the property, which MTR took over from Harrah's Entertainment Inc. in March, "is proceeding satisfactorily," the company said today.