Great Canadian Gaming Corp. Surges Wednesday on Q4 Earnings
Great Canadian Gaming Corp. (TSX:GC) is a gaming company that operates casinos, resorts, racetracks, and hotels. The company is based in British Columbia. Shares of Great Canadian Gaming were up 9% in early afternoon trading on March 7 after releasing its 2017 fourth quarter and full-year results the same day.
In the fourth quarter the company reported revenues of $151 million which represented a 6% increase from $143 million posted in Q4 2016. Adjusted EBITDA climbed 4% to $49.2 million. Great Canadian Gaming also completed the acquisition of the West GTA Bundle in the quarter and entered into a five-year credit agreement that will allow it to expand its capital expenditures.
For the full-year Great Canadian Gaming saw revenues rise 8% to $614.3 million. Adjusted EBITDA increased 7% to $223 million and net earnings rose 12% to $85.7 million. With the closing of its GTA bundle deal, the company will now operate 11 gaming facilities in Ontario. The company expects to complete the construction of the Shorelines Casino Peterborough in the second half of 2018.
In 2018 Great Canadian Gaming will make the improvement of its facilities a continued priority after gaining access to its credit capacity of $1.05 billion. The West GTA Bundle will provide the partnership with exclusive rights for a minimum of 20 years.
Great Canadian Gaming stock is now up 60% year over year. The gross revenue stream from its West GTA Bundle is expected to produce upwards of $1 billion annually. This continues to be an attractive growth stock going forward.