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Great Canadian Gaming grows both revenue and earnings in 2nd quarter
Great Canadian Gaming Corporation recently announced its financial results for the three month period ended June 30, 2011.
Highlights of the report include:
- EBITDA growth of 8% on 3% Revenues increase
- Shareholders’ net earnings of $10.3 million, a 2% increase from the second quarter of 2010
- Acquisition of Chilliwack Bingo for $10.2 million plus contingent trailing payments
For the second quarter of 2011, Great Canadian Gaming Corporation recorded revenues of $99.5 million, a $2.5 million increase from the second quarter of 2010. EBITDA was $37.8 million, a $2.8 million increase from the second quarter of 2010.
The growth in revenues was primarily due to increases at the River Rock Casino Resort (“River Rock”), the Other BC Casinos, and the Great American Casinos. River Rock’s quarterly revenues increased by $3.7 million, primarily due to a 19% improvement in table drop. The Other BC Casinos’ quarterly revenues increased by $1.1 million, primarily due to the installation of 100 slot machines at the Maple Ridge Community Gaming Centre in October 2010. The Great American Casinos’ quarterly revenues increased by $0.8 million, due both to a 13% improvement in table drop and the effect of a below average table hold percentage in the second quarter of 2010.
“Great Canadian’s financial results for the second quarter of 2011 are an improvement over 2010,” stated Ross J. McLeod, Great Canadian’s Chairman and Chief Executive Officer. “While we are witnessing notable increases in gaming volumes at River Rock, revenues at the majority of our properties are still well below those achieved prior to the economic collapse of 2009. Boulevard Casino continues to experience significant gaming revenue pressure as a result of external factors, while the BC Racinos continue to experience a decline in racing revenues.
“While improving the results at Boulevard and the BC Racinos remain priorities, Great Canadian also continues to focus on further improving those segments of our property portfolio that are displaying the potential for growth. In November of 2010, we announced the development of a third hotel tower at River Rock. This tower, which will nearly double the facility’s hotel capacity, will both considerably enhance River Rock’s appeal for future visitors and augment its ability to serve as a conference and convention destination. Construction at River Rock has created minimal disruption for its patrons to date, and is well on its way to reach completion during the fourth quarter of this year. I am confident that the addition of a third tower will contribute to further growth at our flagship facility.
“Great Canadian’s community gaming centres have proven themselves as a source of growth in this otherwise consistent environment. While our success at Maple Ridge is partly driven by Boulevard gaming patrons displaced by the construction adjacent to that property, our temporary gaming offerings in Maple Ridge have been well received and that market continues to develop. We are also pleased to welcome Chilliwack Bingo to the Great Canadian family and are looking forward to developing a community gaming centre in that growing and underserviced market.
Mr. McLeod concluded, “Investments in the development of our properties will be a critical factor in our properties’ long-term revenue growth. This growth remains Great Canadian’s best opportunity for improving stakeholder value.”
Click here to read the full report, including first quarter and second quarter comparisons.
Source: Great Canadian Casinos press release
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