Great Canadian Gaming Corp. (GCG) generated more revenue in the second quarter of 2014 than in any other previous quarter thanks largely to gambling revenue at Metro Vancouver casinos.
While racetrack revenue at the Richmond-based company (TSX:GC) fell 3% in the quarter to $3.9 million, casino gambling revenue surged 18% to $79.9 million.
Revenue growth also came from hotel operations, live entertainment and other sources, but CEO Rod Baker made clear, during an August 13 conference call, that much of the credit for his company’s success goes to Richmond’s River Rock Casino and the wealthy Asian visitors it attracts.
Revenue at River Rock Casino, which is a five-minute Canada Line ride from Vancouver International Airport, spiked 33% to $53.8 million in the three months that ended June 30, compared with the same period a year ago.
Earnings before interest, taxes, depreciation and amortization (EBITDA) soared 54% to $32.7 million at the facility in the quarter, Baker said.
The hotel’s occupancy was up, as was its revenue per available room.
Baker said the River Rock Casino’s hotel achieved an average of $128 for each available room per night in the quarter. That’s 20.7% higher than in the same quarter a year ago.
Overall, GCG recorded $19.9 million in quarterly net profit – a 76% rise compared with the same quarter a year ago. GCG’s total revenue was $114.7 million, or 12% more than a year ago.
Great Canadian Gaming’s other bright spot locally was a 7% revenue rise and 29% EBITDA jump at its Hard Rock Casino Vancouver in Coquitlam during the quarter.
That venue was known as Boulevard Casino last year.
Weak spots for the company included declines in gambling revenue at its casinos in Nova Scotia and on Vancouver Island.
