North American casino operator Great Canadian Gaming Corporation has released its financial results for the second quarter of 2016 showing a 25% increase year-on-year in total revenues to $108.2 million.
The firm behind 20 gambling establishments including Vancouver’s Elements Casino and Casino Nova Scotia in Halifax, Great Canadian Gaming Corporation revealed that adjusted earnings before interest, tax, depreciation and amortization for the three-month period rose by 18% year-on-year to stand at $42.7 million while net earnings improved by 19% to $18.3 million.
The Vancouver-based firm stated that the quarterly swells in revenues and earnings were due to improved business at each of its properties with the exception of the River Rock Casino Resort in British Columbia. It declared that growth from its properties in Ontario, New Brunswick and Nova Scotia was helped by its acquisition of Moncton’s Casino New Brunswick in October along with its January purchase of the Ontario Lottery And Gaming Corporation’s eastern gaming bundle consisting of Shorelines Casino Thousand Islands and Shorelines Slots At Kawartha Downs.
“During the second quarter of 2016, Great Canadian Gaming Corporation generated improvements to revenues and adjusted earnings before interest, tax, depreciation and amortization across our entire portfolio, partially offset by a revenue decline at River Rock Casino Resort,” read a statement from Rod Baker, President and Chief Executive Officer for Great Canadian Gaming Corporation. “Great Canadian Gaming Corporation also benefitted from significant contributions from our recently-acquired Casino New Brunswick and Shorelines Casinos properties. River Rock Casino Resort generated encouraging slot machine revenues during the second quarter, recording the highest slot win in the property’s history. However, River Rock Casino Resort also experienced a decrease in table hold, primarily as a result of decreased high limit table volumes.”
The company affirmed that the second quarter had additionally seen it repurchase or cancel 4.7 million common shares at an average price of $13.57 to raise the ownership percentage of existing shareholders by 7.8%.
“As a result of the acquisitions, Great Canadian Gaming Corporation has successfully diversified its revenue base and we look forward to further diversification upon increasing our presence in New Brunswick and Ontario,” read the statement from Baker. “This effort has already begun in Ontario where we have initiated the construction of a new full service casino and entertainment facility in the city of Belleville under the Shorelines brand targeted to reach completion by the end of 2016. This new facility will enable our Shorelines Casinos to better service our guests in this gaming market.”
Great Canadian Gaming Corporation is also responsible for three Great American Casino-branded venues in the Washington cities of Everett,?Seattle and Lakewood and reported that its first-half adjusted earnings before interest, tax, depreciation and amortization had been boosted by 12% year-on-year to stand at $76.3 million while its six-month total revenues had skyrocketed by 23% to $209.3 million.
“At the conclusion of the second quarter, Great Canadian Gaming Corporation remains in a strong financial position,” read the statement from Baker. “As a result, the company remains well-positioned to take advantage of new opportunities for value creation. While we continue to pursue other potential opportunities in Ontario and elsewhere, we will also continue to efficiently manage our operations and explore additional options to grow our business.”