Gamehost Announces Second Quarter Financial Results and Dividend For August

Gamehost Inc. (TSX:GH) reported a 2.5% decline in operating revenue for the second quarter, amounting to $20.3 million compared to $20.8 million in 2023. EBITDA also fell by 8.9% to $7.99 million from $8.77 million last year. Earnings per share dropped to $0.23 from $0.25.

Table game activity showed solid growth, but overall revenue was hampered by a below-average hold percentage at Deerfoot. The temporary closure of Rivers Casino for six days due to wildfire threats further affected revenue. Hotel occupancy also declined from the pent-up demand seen in the previous year.

Gamehost is operating under a temporary two-year arrangement that raises slot commissions to incentivize operators. The company repurchased 131,700 shares during the quarter for $1.35 million and reduced debt by $753,000. A proposed 2.0% share buyback tax is accounted for in the financials.

The Bank of Canada's rate cuts in June and July have provided some economic relief. Gamehost remains focused on managing costs and investing in high-return areas. A cash dividend of $0.04 per common share for August 2024 has been declared, payable on September 13, 2024, to shareholders of record on August 31, 2024.