Ohio Harness Horsemen's Association

Penn National Gaming Losses Narrow

February 5, 2010

Casino and racetrack operator Penn National Gaming Inc. reported a smaller fourth-quarter loss even as gamblers spent less at its properties.

The company said it expects gamblers' conservative spending habits are likely to continue this year, and provided full-year and first-quarter profit outlooks below analysts' expectations.

The economic downturn has prompted consumers to tighten their spending, and gamblers have pulled back on how much they spend at slot machines and on table games as well as what they shell out for food, drinks and entertainment offered by casino complexes.

"We have limited control over how consumers are continuing to respond to economic pressures and as a result, the gaming industry experienced revenue compression again in the fourth quarter," chairman and CEO Peter Carlino said in a statement.

Anticipating a continued spending clampdown, Penn predicts full-year earnings of $1 per share on revenue of $2.43 billion. For the first quarter, it forecast a profit of 23 cents per share on revenue of $596.7 million.

Analysts surveyed by Thomson Reuters expect higher 2010 earnings of $1.39 per share on revenue of $2.52 billion, and see a bigger first-quarter profit of 34 cents per share on revenue of $634.7 million.

These estimates typically exclude one-time items.

Penn lost $355.4 million, or $4.54 per share, in the three months ended Dec. 31 compared with a loss of $378.6 million, or $4.77 per share, a year earlier.

Analysts predicted a profit of 18 cents per share.

Net revenue dropped 3% to $555.8 million from $571.1 million, with declines in gaming, food and beverage revenue.

The results fell short of Wall Street's $573.6 million.

OHHA Mission Statement

Founded in 1953, the mission of the
Ohio Harness Horsemen’s Association
is to preserve, protect, promote
and serve the Standardbred
industry in Ohio & beyond.

Important Dates

October 26, 2010
4th Quarter Board Meeting~OHHA Office
January 14, 2011
1st Quarter Board Meeting~OHHA Office
January 15, 2011
OHHA/USTA District #1 Annual Membership Meetings
Meetings are are held at the OHHA office in Columbus, Ohio at 1 pm, and all horseman are welcome to attend.

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Penn National Gaming Losses Narrow