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The COVID-19 epidemic continued to have a “significant impact” on Great Canadian Gaming’s business operations in Q2, as the casino operator also provided an update on its anticipated purchase.
Raptor Acquisition Corp, an affiliate of funds managed by Apollo Global Management affiliates, had received Investment Canada Act and Canadian Pari-Mutuel Agency approval for the acquisition by the end of the second quarter, pursuant to a previously announced plan of arrangement involving Great Canadian, the purchaser, and company securityholders.
Crown corporations and gambling regulators are also continuing with their regulatory approval processes. The deal is expected to finalise in the third quarter of 2021, according to Great Canadian.
Terrance Doyle, interim CEO of Great Canadian said: “We continue to make progress on the closing of the arrangement with Apollo Funds, as demonstrated by the approvals received so far and the closing of a private offering by RAC and its affiliate of $350m senior secured notes.
“We are assisting Apollo Funds to satisfy all remaining closing conditions, including the required regulatory approvals.”
The group said the reopening of its Atlantic properties under restricted operating conditions for a portion of the quarter contributed to a 13 percent rise in revenue to C$70.7 million (2020: C$62.8 million).
Reduced property, marketing, and administration expenses in Ontario, as well as the aforementioned reopenings, drove adjusted EBITDA to C$41.8 million, up 31 percent from C$31.8 million.
Revenue and adjusted EBITDA for the first half of the year fell 63 percent and 54 percent, respectively, to C$123 million (2020: C$336.6 million) and C$62.3 million (2020: C$ 134.8 million).
All properties open
“With significant progress being made with the mass vaccination program across Canada and the gradual lifting of restrictions by provincial governments, we are finally able to open all of our properties,” Doyle added.
“We are happy to welcome back many more of our team members who have shown patience, perseverance and understanding during the temporary suspensions.
“These past 16 months have proven to be the most challenging in the company’s history, but Great Canadian is still well-positioned to remain a leader as we emerge from the Pandemic.
“We want to thank all of our team members for their continued hard work and support for the business during these unprecedented times.
“As restrictions begin to gradually lift in each province that we operate in, Great Canadian remains committed to adhering to all directives issued by public health authorities and prioritising the health and safety of our team members and guests at all times.
“We are excited to finally be moving forward in rebuilding our business and delivering great entertainment to our guests.”