TORONTO — Magna Entertainment Corp. is taking a $59.7-million after-tax writedown on Magna Racino, its racetrack near Vienna, Austria.
The horse-track company in Frank Stronach's Magna International corporate stable said Monday that it “has made significant strides in improving Magna Racino's financial results and remains optimistic regarding the long-term potential for Magna Racino.”
However, “a writedown is required in light of the continued operating losses.”
Magna Entertainment will book the asset-impairment charge, worth 56 cents per share, in its fourth-quarter results to be released Feb. 27.
The racetrack opened in April 2004 in the native land of Mr. Stronach, a prominent horseman who is chairman and interim CEO of Magna Entertainment as well as chairman of auto parts giant Magna International.
Magna Entertainment's main business is its chain of U.S. horse tracks, off-track betting facilities and casinos.
© Canadian Press
