Supplier News
Canada – Great Canadian posts huge gains in Q2
By Phil - 11 August 2016
Great Canadian Gaming saw a 25 per cent revenue jump to $140.2m in its financial results for the three month period ended June 30, 2016.
This improvement was due to increases at each of the company’s groups of properties, with the exception of River Rock Casino Resort. The growth at the company’s Atlantic Casinos and Ontario Properties were due to the Company’s October 2015 acquisition of Casino New Brunswick and January 2016 acquisition of Ontario Lottery and Gaming Corporation’s Gaming Bundle 2 (East), which consists of Shorelines Casino Thousand Islands and Shorelines Slots at Kawartha Downs, collectively known as the “Shorelines Casinos”.
Adjusted EBITDA during the second quarter was $55.3m, an increase of 18 per cent increase when compared to the same period in the prior year. This improvement was primarily due to the improvements at each of the company’s groups of properties, partially offset by a decrease at River Rock.
Rod Baker, the company’s President and Chief Executive Officer, said: “During the second quarter of 2016, Great Canadian generated improvements to revenues and Adjusted EBITDA across our entire portfolio, partially offset by a revenue decline at River Rock Casino Resort. Great Canadian also benefitted from significant contributions from our recently acquired Casino New Brunswick and Shorelines Casinos properties. River Rock generated encouraging slot machine revenues during the second quarter, recording the highest slot win in the property’s history. However, River Rock also experienced a decrease in table hold, primarily as a result of decreased high limit table volumes.” “As a result of the acquisitions, Great Canadian has successfully diversified its revenue base, and we look forward to further diversification upon increasing our presence in New Brunswick and Ontario,” he added.
“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.”
“During the second quarter, the company repurchased for cancellation 4.7m common shares at an average price of $17.57. As a result, we increased the ownership percentage of our existing shareholders by 7.8 per cent over the course of the quarter.”
“At the conclusion of the second quarter, Great Canadian remains in a strong financial position,” concluded Mr. 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.”
