Great Canadian Gaming Posts Its Q2 2018 Results
Great Canadian Gaming Corporation has announced its financial results for the second quarter of this year, revealing a strong three-month period that ended on June 30th.
And while revenues record a staggering increase, the company’s further expansion continues.
An Excellent Quarter for the Company
According to published data, British Columbia-based company recorded $305.3 million in revenues during the second quarter, which represents a rise of 90% when compared to the corresponding period of 2017.
Net earnings soared by a fantastic 134% to $64 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $124.6 million, 98% more than in the second quarter of the prior year.
The latest quarter has also brought good news for the company’s shareholders, with their quarterly net earnings of $42 million representing a year-on-year rise of 57%, while the price of a single common share went up by 60% to $0.69.
The acquisitions of the GTA and West GTA Gaming Bundles were cited as the main driving force behind the revenue growth during the quarter, while the rise in shareholders’ net earnings was a result of increased adjusted EBITDA, though partially offset by increases in amortisation, business acquisition, and restructuring.
For the most part, income taxes rose due to the purchase of the GTA Gaming Bundle and the West GTA Gaming Bundle.
In May, the Ontario Gaming West GTA Limited Partnership, a joint venture where Great Canadian Gaming holds a 55% interest completed the purchase of the so-called West GTA Gaming Bundle in a transaction worth $121.6 million. The partnership secured a five-year credit for the acquisition of these gaming assets and leased real property, whose capacity has been estimated at $285 million.
Only a month later, the company inked a new deal with the British Columbia Lottery Corporation, which extended the rights to operate all of the properties of the provincial corporation for a minimum of 20 years. Under the provisions of the new Operational Services Agreements operating commissions for table games, poker and bingo were raised, while a new Facility Investment Commission replaced the former Facility Development Commission.
In the meantime, One Toronto Gaming continues its development plans for the facilities located in the GTA Gaming Bundle. After receiving the green light from the Toronto city officials, OTG will introduce gaming at Casino Woodbine, while its plans include more than 50 table games and more than 500 slots. It is expected everything will be ready during the third quarter of 2018. But that’s not all since the company plans to introduce additional 50 table games over 300 video slots in the last quarter of this year.
Commenting on the latest results, Rod Baker, President and Chief Executive Officer of Great Canadian Gaming said the company’s second quarter had reflected a full quarter of operations from the GTA Gaming Bundle and two months of operations from the West GTA Gaming Bundle.
Baker pointed out the firm’s expanded presence in Ontario and the long-term extensions in B.C from the new OSAs secured the Company’s position as the preeminent gaming operator in Canada. He added Great Canadian was at the moment a much stronger and more diversified company that was well positioned for further growth.