Great Canadian Gaming Corporation has posted its Q4 and full year financial results for the period ended December 31, 2019, with revenue ahead on both counts at $357.4m (+8%) and $1.4bn (+15%) respectively year-on-year.
The firm reported higher adjusted EBITDA of $152m in Q4 and $557.3m for the full year, which included a $21.1m and $83.7m positive impact from IFRS 16 adoption respectively. Adjusted EBITDA was $117.8m and $466m in the same prior year periods.
CEO Rod Baker told investors that 2019 was a productive year with construction activities ramping up on several significant developments that will continue through 2020 and 2021.
He added: “In December 2019, we also successfully on-boarded our new Chief Operating Officer, Matt Anfinson, who brings the skills and experience required to optimize on operational opportunities at current facilities, as well as develop strategies to successfully launch our new properties under development.
“We are also pleased with our recent efforts to enhance the company’s capital structure as we move into a busy 2020, including the previously announced accordion increase to the company’s senior secured revolving facility, closing the senior unsecured debenture offering, as well as the substantial issuer bid offer to shareholders.”
Increases in revenue were, said the firm, attributable to the expansion of gaming and non-gaming amenities in its Ontario properties. Revenues for the 12 months ended December 31, 2019 included an additional 22 and 120 days of operations from the GTA and West GTA gaming bundles since their acquisitions on January 23, 2018 and May 1, 2018, respectively.
Adjusted EBITDA increased during the fourth quarter and 2019, when compared to the same periods in the prior year, mainly due to the accounting impact of IFRS 16, the new lease accounting standard adopted on January 1, 2019. The increase in adjusted EBITDA was also attributable to the above mentioned increased revenues in the Ontario region, partially offset by increased operating costs related to expanded operations in Ontario.