Higher costs and taxes cited as cause for PENN profit decline

Jul 30, 2012 6:05 PM

Higher operating costs and higher taxes were given as reasons profits declined during the second quarter for Penn National Gaming Inc. (PENN).

Net income was reported as $66.7 million or $0.63 per share compared to $76 million or $0.71 per share a year ago. Analysts had expected earnings of $0.64 per share.

Revenue increased 4 percent to $712.6 million but operating expenses rose to $584.5 million from last year’s $547.3 million. Taxes also increased. Last year the company paid $38.3 million while this year they increased to $46.3 million.

Company officials reduced full-year expected earnings from $2.48 per share to $2.46 per share.