GC 4Q09 "YouTube"
TRENDS & OUTLOOK:
- "February 2010 revenues in BC declin[ed] by 7.6%, when compared to last year. In January 2010 for comparison, BC revenues were essentially flat, when compared to January 2009."
- "In the most recent fourth quarter, weather was fair and construction disruption was minor, yet consolidated revenues were basically at the same level as last year. So the burden of the weakened economy continues to weigh upon our markets."
- River Rock Commentary:
- "Since it commenced operation last August, the Canada Line has grown River Rock’s average visitation by approximately 20% with a commensurate increase in slot coin-in of approximately 10%."
- "Table drop, slot coin-in and visitation witnessed double-digit improvements when compared to February 2009. Unfortunately though, the benefit of these increases was offset by a table hold percentage of 14.9%, well below River Rock’s historical average."
- "The results produced since View Royal’s redevelopment last year have been disappointing to-date, we believe it has mitigated what would otherwise have been a more significant decline."
- Vancouver Island margin sustainability at 61.8%?
- "With the expansion that we had at View Royal, we were actually disappointed with that to be quite honest...we feel comfortable with that EBITDA margin that’s there and hopefully can continue to sustain that going forward."
- "The expansion at Georgian Downs has also been less successful than anticipated."
- "We anticipate that our development CapEx for 2010 will be approximately $15 million while an initial $10 million will be devoted to maintenance."
- "Revenue growth would enhance the EBITDA margin and incremental revenues at the margin are fantastic for us. And on slots, they have 80% margin, on table games, which has some labor, they’re going to be 55%, 60% margin"
DEVELOPMENT & INITIATIVES UPDATE:
- "Georgian Downs added 400 new machines with a further 150 to follow by the second quarter".
- "In Nova Scotia, we’ll refresh approximately 500 games by the end of April, replacing more than 50% of those properties’ offerings. The refresh product will both assist in attracting new patrons and better satisfy existing ones."
- "In February....we reengineered River Rock’s main gaming floor both to better present the Canada Line facing entrance and create 8,000 square feet of additional gaming space within the property’s existing footprint. This allowed River Rock to increase its slot and table capacities by more than 15 and 10% respectively."
- "Across our portfolio, we are beginning to develop more structured and effective patron tracking and rewards
- "River Rock recently introduced patron gaming funds. These accounts allow players to electronically transfer funds directly to the property and are one of several privileges we are now extending to River Rock’s VIP patrons."
- "We’ve also established a dedicated area of the property for slot VIPs and introduced a slot VIP program."
- "At Boulevard, we have recently augmented our VIP table business."
- "In order to publicize all three of our improvement initiatives, Great Canadian will amplify its marketing efforts throughout the year. Although this will generate minor increases in operating expenses, we will utilize the targeted approach and communicate with our patrons in a way that they see value."