Gamehost Announces Second Quarter Financial Results and Dividend for August

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RED DEER, AB / ACCESSWIRE / August 8, 2023 / Gamehost Inc. (TSX:GH)

Management and Directors of Gamehost Inc. (the "Company") present results for the six and three months ended June 30, 2023 (the "Period" and "Quarter" respectively).

Gaming Facility Operators Licences for all of the Company's casinos were renewed for a period of six years following an Alberta Gaming, Liquor, and Cannabis Commission ("AGLC") review process. The licences are valid to June 30, 2029. The Company considers the licences to have indefinite life.

Results in the Quarter are compared with both the comparable prior year quarter and (pre-COVID-19 quarter in 2019). Operating revenue was $20,833.1 thousand versus $17,927.9 thousand ($16,821.6 thousand - 2019), EBITDA was $8,773.6 thousand versus $6,645.0 thousand ($6,497.0 thousand - 2019), and Earnings per share for the Quarter was $0.25 versus $0.15 ($0.19 - 2019).

The Quarter reflects a two-percentage point increase in the operators share of electronic gaming device Hold from 15% to 17%. AGLC approved the temporary, two year, increase effective April 1, 2023. The increase is intended to incentivize operators to make investments in their facilities or promotions that will increase gaming revenues and will be evaluated at regular intervals by AGLC during the two-year period. Management is hopeful that results following the two-year period will support the change being made permanent.

Wildfires during the Quarter and ongoing are supressing rooming revenue at our Service Plus hotel in Grande Prairie as oil & gas crews are prevented from safely accessing field areas. Otherwise, management is very pleased with the continued strong performance of all assets during the Quarter.

A regular monthly dividend through the Quarter was maintained at an annualized rate of $0.36 per common share equating to a normalized (share repurchases, and capex removed) payout ratio of 33.8%. During the Quarter, the Company repurchased 200,700 common shares at prices averaging $8.99 per common share excluding broker commissions for an aggregate $1,803.4 thousand. Remaining surplus cash was used to reduce revolving debt by $2,092.7 thousand. Management intends to continue this three-pronged allocation for surplus cash.

Discretionary consumer spending at Company casinos is proving quite resilient to ongoing inflationary pressures. Alberta's country leading net migration statistics for 2023, are undoubtedly offsetting any negative pressures from inflation. This is likely to continue as housing affordability and employment opportunities in Alberta attract the attention of international and provincial migrants.

With Calgary's world-famous Stampede now in the rear-view mirror after setting near record attendance, it's clear that locals and tourists alike are wanting to live it up. Tourism and entertainment are booming after years of Covid-19 suppression. Gamehost casinos and hotels are delivering what the people want. Enjoy the rest of summer!