Q2 has worked out very positively for the gambling sector, and Great Canadian Gaming has released results to prove it. The company undertook several crucial milestones in the quarter, including Raptor Acquisition’s approval under Investment Canada Act and launching Pickering Casino.
Great Canadian Gaming restarted its operations in June with Pickering Casino Resort’s opening. As Canada is witnessing mass vaccination, authorities are gradually lifting restrictions on activities. The company thanked its employees and customers for being patient as it restarted its proceedings.
The company noted that most of its 2020 and 2021 revenue came through the service provider fee of the Ontario bundles’ entitlement. The primary reason Great Canadian Gaming acquired higher revenue than the previous year was the reopening of Atlantic venues.
Its adjusted EBITDA amounted to 41.8 million dollars in Q2, showing an increase of 10 million dollars than 2020. However, its cash flow went 22.8 million dollars down from 123.4 million dollars spent in 2020. The decrease came because of the reduced capital expenditure.
Its cash outflow for Q2 amounted to 0.3 million dollars, dropping drastically from 383.7 million dollars since 2020. As a result, shareholders witnessed a 20 million dollars decrease in net loss compared to the 31.4 million dollars in 2020. The higher EBITDA played a crucial role in the bettered net loss rate. In addition, reduced share-based compensation expense and increased amortization also played a crucial role in minimizing losses.
The company expressed its optimism regarding the opening of Pickering Casino Resort. The casino was part of the company’s Ontario Development Plan 2018. Therefore, the Great Canadian team was highly anticipating its opening, adding to its entertainment and gaming marketplace in the region.
After the reopening of casinos took place, the company regained its stability with a positive 437 million dollars cash balance. It also has 912 million dollars of undrawn credit, which is subject to applicable covenants.
Since the company is restricting its operations and the Apollo Funds deal is on hold, it will not host any conference call with investors to assess the financial results. However, as the industry starts to function in full force, the company expects to bring in better revenue in the coming quarter.