Great Canadian Gaming Corporation president and chief executive Rod Baker reflects on what has proved to be a positive opening for 2016, after the organisation saw its like-for-like revenue leap by 20 per cent in the first quarter.
[dropcap]“[/dropcap]During the first quarter of 2016, Great Canadian generated revenues and Adjusted EBITDA improvements across the majority of our portfolio. These improvements reflect the significant contributions of our recently acquired Casino New Brunswick (pictured) and Shorelines Casinos properties. The benefit of these new properties was partially offset by a revenue decline at River Rock Casino Resort. River Rock did generate encouraging slot machine revenues during the first quarter, recording the second highest slot win in its history. However, the property also experienced a 2.3 decrease in table hold percentage when compared to the first quarter of 2015. River Rock also witnessed a 16 per cent decline in table drop, primarily as a result of decreased high limit table volumes.
As a result of the aforementioned acquisitions, Great Canadian’s revenue base has gained considerable diversity, and we look forward to developing our presence within these new operating markets. This effort has already begun in Ontario, where we recently started construction of a new Shorelines Casino property in the city of Belleville. This property will encompass nearly 50,000 square feet, and feature approximately 400 slot machines and 20 tables. We have also announced plans to relocate the Shorelines Slots at Kawartha Downs to a new location within the city limits of Peterborough, pending receipt of the appropriate governmental approvals. This new location will allow the property to offer guests a wider array of gaming and entertainment options.
At the conclusion of the first quarter, Great Canadian maintained a strong cash balance. 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.”