Canadian Gambling Group Reports Lower Profits
18 May 2006
A large Canadian gambling and horse racing company, Great Canadian Gambling Corp has announced that due to restructuring in the company, first quarter profits were down significantly. The gambling company exposed figures that strongly indicated this - first quarter profits dropped from $9.3 million a year earlier to $1.4 million this year. They said that the restructuring of the gambling company cost them over $1.6 million.
The gambling company's share prices also didn't fare too well where earnings of the first quarter brought home two cents per share compared to twelve cents per share the previous year. Revenue rose to $86.6 million from $85.6 million for the same period. A spokesperson for the gambling company said that the lower profits were expected due to the restructuring and that these moves of reorganization show the company's commitment to smooth operations and reduced costs. He continued that the gambling industry was so dynamic that if companies did not update their operations on a continual basis, they could find themselves left behind.
The company's gambling revenue increased 4% from the fourth quarter of 2005, while non-gambling revenue decreased 7 % from the fourth quarter, attributed primarily to the seasonal closure of a major race course. The company is looking to expand into other gambling-related markets and is keeping all the options open.
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