Casino and horse racing company Great Canadian Gaming Corp. says its first-quarter profit dropped to $1.4 million, from a year-earlier $9.3 million, dragged down by restructuring charges of $1.6 million.
Earnings for the quarter ended March 31 amounted to two cents a diluted share, compared with 12 cents per share a year ago, the Richmond-based company reported Monday.
Revenue rose to $86.6 million from $85.6 million.
"Our first-quarter results provide positive evidence of Great Canadian's renewed focus on operations, chairman-CEO Ross McLeod said in a release.
"We have taken initial steps to reduce our cost structure and grow profitability across our operations. While I expect the coming quarters to build a trend of improvement, much work remains to be done."
Gambling revenue increased 4 per cent from the fourth quarter of 2005.
"This increase can be attributed primarily to a full quarter of operation at the expanded Boulevard Casino in Coquitlam, offset by a decline in Washington State revenues, resulting from a state-wide smoking ban, a decrease in the table games hold percentage at River Rock, and a seasonal decline at the Nova Scotia casinos," the firm said.
Non-gambling revenue decreased 7 per cent from the fourth quarter, attributed primarily to the seasonal closure of live racing at Hastings Racecourse and reduced food and beverage revenues from Hastings, Georgian Downs and the Nova Scotia properties, also mainly due to seasonal factors.
Great Canadian operates casinos, thoroughbred and standardbred racecourses, a community gaming centre, hotel, theatre, and various food and beverage facilities.
The company has about 5,200 employees and operates in British Columbia, Ontario, Nova Scotia and Washington state.
source : Canadian Press
