Great Canadian Gaming has announced first quarter 2010 results stating that improved efficiency and River Rock combine to create continued EBITDA growth. Revenues saw a 3% decline from first quarter 2009 at $93 million but EBITDA was up 7% at $31.4 million. Operations continued to experience a challenging economic environment but efficiency improvements allowed the Company to generate improved EBITDA.

The company is a multi-jurisdictional gaming and entertainment operator with operations in British Columbia, Ontario and Nova Scotia, and Washington State. It operates ten casinos, a thoroughbred racetrack that offers slot machines, three standardbred racetracks (two offer slot machines and one offers both slot machines and table games), a community gaming centre, a bingo hall, a hotel and conference centre, two show theatres and various associated food and beverage and entertainment facilities.

The year-over-year revenue decline was due to the impact of the challenging economy, the mandatory February closure of Hastings Racecourse during the Winter Olympics, and the effect of the weakened American dollar on the Great American Casinos’ revenues. These declines were offset by a revenue increase of $1.8 million at the River Rock Casino Resort in Richmond. This increase can be attributed to both the opening of the Canada Line during the third quarter of 2009 and the completion of the property’s redevelopments during the fourth quarter of 2009. These factors have improved both visitation and gaming volumes at River Rock.

“Great Canadian’s results for the first quarter of 2010 present a mixed outlook for the year ahead,” stated Ross J. McLeod, Great Canadian’s Chairman and Chief Executive Officer. “Many of our properties continue to witness the impact of a challenging economy. While visitation levels have remained relatively robust, our patrons across Canada have become more conservative in their entertainment spending. Throughout 2010, we will continue to improve every customer-facing facet of our business. This is the most cost effective route to both recovering those revenues lost during 2009 and generating new growth.”

The company’s Boulevard Casino in Coquitlam is currently facing challenges from a competing facility, disruption caused by highway improvements and the continuing economic pressures on customers. McLeod said, “We have already begun to address these challenges, and Boulevard will remain an area of focus over the coming quarters.” He added, “Great Canadian’s results for the first quarter of 2010 have further fortified the company’s financial position. We attained this position through the adoption of a conservative philosophy. We will maintain this philosophy going forward, and seek to further improve both our efficiency and our offerings. Although we have made progress in this regard, it remains not only our focus for 2010, but also our greatest near-term opportunity for increasing stakeholder value.” (E-05.11.10)

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