Yesterday Great Canadian Gaming Corp (GCGC) announced a first-quarter drop in profit to $1.4 million, up from the fourth quarter last year but down from $9.3 million for the first-quarter 2005. Revenue, however, rose 1% from the last quarter and increased by 66% from the first-quarter last year. GCGC is a multi-jurisdictional gaming and entertainment operator with facilities in British Columbia, Ontario, Nova Scotia and Washington State. It has around 5,200 employees and operates casinos, racecourses, hotel, theatre, community gaming centre and various food & beverage facilities.

Ross J McLeod, the company’s Chairman and CEO , said that the results provide positive evidence of GCGC’s renewed focus on operations. “We have taken initial steps to reduce our cost structure and grow profitability across our operations. While I expect the coming quarters to build a trend of improvement, much work remains to be done. We will continue to focus on creating both operational efficiencies and top-line growth.” Mr McLeod went on to say, “This coming summer will provide the first opportunity for the River Rock Casino Resort to take advantage of its full amenities and new status as a tourist destination.”

Gaming revenue increased 4% in the first quarter, compared to fourth-quarter 2005. This was attributed to the first full quarter of operation for the expanded Boulevard Casino in Coquitlam. A corresponding decline in revenue from Washington State resulted from a statewide smoking ban there. There was also a seasonal decline at Nova Scotia casinos. Summing up Mr McLeod stated, “I anticipate that the next few months will provide continued growth for our properties. This is a year of improvement, and it has begun in a promising fashion.” (E-05.16.06)

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