Gamehost (GH) Q3 2024 earnings summary

Executive summary

• Operating revenue for Q3 2024 decreased 4.7% year-over-year to $20.4 million, with EBITDA down 13.6% to $8.2 million and EPS at $0.24, reflecting challenging hold percentages at key properties.

• For the nine months ended September 30, 2024, revenue declined 1.3% to $61.2 million, and net profit dropped 7.1% to $14.6 million compared to the prior year.

• The board approved a 25% increase in the regular monthly dividend, effective November 2024, to $0.05 per share ($0.60 annualized).

Financial highlights

• Q3 2024 gross profit was $8.1 million, down 13.4% year-over-year; profit from operating activities fell 14.6% to $7.1 million.

• Net finance costs for Q3 were $0.6 million, and profit before tax was $6.5 million, both lower than Q3 2023.

• Cash at quarter-end was $15.2 million, up from $14.0 million at year-end 2023; total debt reduced to $39.9 million from $46.2 million.

Outlook and guidance

• Management views the economic backdrop in Alberta as optimistic, citing above-average population growth and improving consumer conditions.

• Ongoing advocacy for a permanent or increased operator share of slot Net Win continues, with regulatory evaluation underway.