Great Canadian Gaming Comments On Q3 Report
Great Canadian Gaming Corp. has reported net losses amounting to CA$36.5 million for the three months spanning the third quarter of the year and ending September 30. Though recently permitted to reopen its Casino Woodbine and Casino New Brunswick properties after a string of openings and closures, the operator has once again been ordered to temporarily re-shutter once more its Casino Woodbine venue in Ontario. Its British Columbia casinos have remained shuttered too.
The operator in its latest financial report refers to the global health crisis having had a large and significant impact on its business operations and revenue income – with all of its gaming venues and facilities mostly shuttered ever since March 16, 2020.
The Downward Drivers
But not even staggered reopenings have managed to bring about the required relief so desperately needed in Q3. Since all those sites permitted to reopen have been allowed to do so only under the strictest and most rigorous conditions and health and safety protocols, the company has had to make do with a limited making available of its slot machines and at significantly reduced occupancy capacities.
An additional factor to have played a role in the company’s below-par Q3 performance has been that of massive blow dealt to Great Canadian Gaming Corporation’s capital program. Since the provincial government of Ontario earlier this year on April 4 ordered the closures of all construction projects considered non-critical, the operator during the period April 4 to May 19 experienced a temporary stand-still of all capital projects at the time under development in the province. This has essentially led to a complete reassessment of the company’s in-process development projects in Ontario.
The Future Remains Uncertain
Q3 also saw the company draw on eligible government assistance to the value of CA$5.6 million – assistance it has reportedly now had to record as an official reduction against related expenses. This too, though unavoidable, has emerged a downward driver of available capital and operational revenue in terms of the most recent financial report.
Great Canadian Gaming has however said that it believes its mitigating actions in response to 2020’s business interruptions to have been the laying of a solid foundation in terms of the effective ongoing maintenance of things like capital structure, cashflow, etc.
Since the situation on the business front across the country and the world remains volatile and impossible to predict, the operator has said that it isn’t possible to at this point in time predict a reasonable estimation regarding the possible long-term impact on future results and operations.