Mere hours ago, Canada’s leading entertainment provider Great Canadian Gaming Corporation (“Great Canadian”) posted information about the revenue generated by its gambling operations for the three month period ended on 31st December 2017 as well as its financial results for the full calendar year ended on 31st December 2017.
The company posted an 8% increase in revenue for the full calendar year and 11% increase in 2017 annual shareholders’ net earnings. During the period in review, the company generated the total amount of $614.3 million in annual revenue, up 8% as compared to the figure posted for the previous calendar year. For the three month period ended on 31st December 2017, the company generated $151.0 million, up 6% year-on-year.
The increase was mainly attributed to the excellent results of the Shorelines Casinos and improved Adjusted EBITDA from the majority of the property groups. The company generated an increase in adjusted EBITDA and a decrease in business acquisition, restructuring, and other costs. The slump was attributed partially to increases in income tax and amortization. Adjusted EBITDA was $49.2 million for the fourth quarter and $223.0 for the full year, an increase of 4% and 7% respectively, when compared to the same periods in the prior year.
As aforementioned, shareholders’ net earnings during 2017 increased by 11% as compared to the figure posted for the previous calendar year. Shareholders’ net earnings totaled $12.9 million, or $0.21 per common share in the fourth quarter, representing a decrease of 17% and 19%, respectively, when compared to the same period in the prior year. Shareholders’ net earnings for the full year totaled $84.3 million, or $1.38 per common share, an increase of 11% and 13% respectively, when compared to the same period in the prior year.
Key Drivers Behind Great Canadian’s Growth
Rod Baker, the Company’s President and Chief Executive Officer commented that the company had yet another year of healthy growth. He explained that the company supports profit growth thanks to the recent acquisition of certain gaming assets in the GTA Gaming Bundle. In January this year, Great Canadian Gaming completed the acquisition of GTA Bundle. The company expects to complete the acquisition of the West GTA Gaming Bundle in the second quarter of 2018.
Great Canadian saw its revenue jump despite the massive money laundering scandal that rocked British Columbia gambling industry last September. Almost six months after the newly-elected government publicized the suppressed casino report, British Columbia’s gambling industry is still reeling. However, it seems that the money laundering scandal that has taken over the country by storm in recent months did not damage the company’s growth.
