From British Columbia the Great Canadian Gaming Corporation, with operations in British Columbia, Ontario, Nova Scotia and Washington State and around 5,500 employees, has announced a 5% improvement in financial results for the first quarter of 2008. Net earnings grew 26% to $5.4 million. There were revenue declines at the company’s BC racino properties and the Nova Scotia casinos, but these were offset by increases generated by the River Rock and Boulevard properties and a modest improvement at Vancouver Island casinos.

“During a period in which many U.S. gaming operators are witnessing the impact of an increasingly challenging economic environment, Great Canadian continues to record solid year-over-year revenue and EBITDA growth,” stated Ross J. McLeod, Chairman and CEO. “Our 2008 first quarter results reflect the benefits we continue to generate from redeveloped gaming and service offerings at both River Rock Casino Resort and Boulevard Casino.”

An ongoing anti-gambling campaign in Nova Scotia has led to increased promotional programmes in an effort to improve visitor numbers but the decline has led to a reduction in staffing levels and hours of operation. The introduction of slot machines and gaming facilities at two racetracks has created expenses that the company seeks to rationalise as the markets mature.

“Overall, the strong performance of our recent gaming and service redevelopments is a very positive signal. We’re confident that Great Canadian has the proper team and capital structure in place to realize further growth from the property redevelopments currently underway. Throughout the first quarter of 2008 we continued to make steady progress on redevelopment projects at River Rock, Georgian Downs and Hastings Racecourse. We’ve also received the development permit necessary for our planned changes at View Royal, and expect that facility’s redevelopment to reach completion by the end of 2009.”

Mr. McLeod concluded, “Our focus throughout the balance of 2008 is on driving further revenue growth, executing against initiatives put in place to address market specific pressures that are impacting operating efficiency at several of our properties, and continuing to progress on our robust pipeline of development projects. We’re also continuing to repurchase our shares in accordance with our normal course issuer bid. Given the success we have recently demonstrated with similar initiatives, we are confident that all these goals will be achieved, and that this will result in the continued creation of additional shareholder value.”
(E-05.13.08)

© Copyright 2008 CasinoCompendium



>>> return to archives
>>> return to frontpage