Gamehost Announces Fourth Quarter Financial Results and Dividend For March

Rhea-AI Summary

Gamehost reported its Q4 2024 financial results, showing a slight decline in performance. Operating revenue decreased 0.6% to $21.16 million, while EBITDA fell 4.6% to $8.29 million. Earnings per share dropped to $0.24 from $0.25 in 2023.

Regional performance varied, with Calgary showing growth (revenue +2.7%, EBITDA +1.7%), while northern regions experienced declines. Grande Prairie saw revenue and EBITDA drop 4.0% and 10.7% respectively, while Fort McMurray declined 8.2% and 12.0%.

Notable developments include:

• AGLC extended operators' share of electronic gaming device win from 15% to 17% until March 2026
• Company repurchased 96,500 shares for $1.03 million
• Reduced debt by $2.46 million, maintaining debt to EBITDA ratio at 1.2x
• Increased monthly dividend by 25% to $0.05 per share ($0.60 annualized)

Positive

• Increased monthly dividend by 25% to $0.05 per share
• Calgary operations showed growth in revenue (+2.7%) and EBITDA (+1.7%)
• Extended favorable gaming revenue share of 17% until March 2026
• Reduced debt by $2.46M with healthy debt/EBITDA ratio of 1.2x

Negative

• Overall revenue declined 0.6% to $21.16M
• EBITDA decreased 4.6% to $8.29M
• EPS dropped to $0.24 from $0.25 year-over-year
• Fort McMurray operations declined significantly (revenue -8.2%, EBITDA -12.0%)
• Grande Prairie operations weakened (revenue -4.0%, EBITDA -10.7%)

Not intended for distribution to U.S. newswire services or for dissemination in the U.S.

RED DEER, AB / ACCESS Newswire / March 11, 2025 / Gamehost Inc. (TSX: GH)

Management and Directors of Gamehost Inc. (the "Company") present results for the twelve and three months ended December 31, 2024 (the "Year" and "Quarter" respectively).

Operating revenue for the Quarter was down 0.6% to $21,160,000 ($21,296,000 - 2023). Earning before interest, taxes, depreciation and amortization ("EBITDA") was down 4.6% to $8,295,500 ($8,698,900 - 2023). Earnings per share for the Quarter was $0.24 ($0.25 - 2023). Table Hold % fell well short of the comparable quarter and continued to fall short of historical norms during the Quarter. All other revenue streams performed favourably in the Quarter.

For the Quarter, regionally, Calgary reported operating revenues and EBITDA 2.7% and 1.7% higher than the prior year quarter. Results were generally weaker moving northward. Grande Prairie reported operating revenues and EBITDA 4.0% and 10.7% lower than the comparable quarter and Fort McMurray reported operating revenues and EBITDA 8.2% and 12.0% lower than the comparable quarter. Results loosely correlate with weaker population growth and capital investments moving south to north in the province.

Since our last quarterly report, the Alberta Gaming, Liquor and Cannabis ("AGLC") announced they would be extending the temporary two-year increase in the operators' share of electronic gaming device win to three years. The 2% increase, from 15.0% to 17.0%, will now expire March 31, 2026. AGLC continues to evaluate the programs success at driving Cash Play.

During the Quarter, the Company repurchased 96,500 common shares for an aggregate $1,031,000 and reduced debt by $2,463,600. Debt to EBITDA stands at 1.2 times at the end of the Year.

The Company's board of directors approved a dividend increase of 25% effective November 2024 to $0.05 monthly (CDN) per common share or $0.60 (CDN) per common share on an annualized basis. Continued solid operating results, the Company's progress on debt reduction together with a downward trajectory for interest rates provided the necessary backdrop for sustainability.

With inflation largely tamed and the Bank of Canada clearly in an easing cycle, Alberta with its leading population growth should be poised for leading economic results. Recent tariff announcements, threats and other noise from a new USA administration are casting economic clouds over all of Canada. These are things we have no control over. We will continue to do what we do best, look after our own house. That said, with consumer response shifting to 'buy Canadian' and 'support local' it can't hurt that we are both.

Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (thousands except per share figures)

	twelve months ended December 31												three months ended December 31
	2024				2023				% Chg.				2024				2023				% Chg.
Operating revenue	$	82,395.0			$	83,360.3				(1.2	%)		$	21,160.0			$	21,296.0				(0.6	%)
Cost of sales
Other		(46,721.0	)			(45,212.0	)							(12,046.7	)			(11,753.0	)
Depreciation		(3,336.7	)			(3,354.6	)							(850.4	)			(808.8	)
		(50,057.7	)			(48,566.6	)							(12,897.1	)			(12,561.8	)
Gross profit		32,337.3				34,793.7				(7.1	%)			8,262.9				8,734.2				(5.4	%)
Lease and other income		225.1				192.0				17.2	%			61.5				51.2				20.1	%
Administrative expenses
Other		(3,733.8	)			(3,687.8	)							(925.4	)			(954.4	)
Depreciation		(868.3	)			(921.1	)							(217.1	)			(210.9	)
		(4,602.1	)			(4,608.9	)							(1,142.5	)			(1,165.3	)
Profit from operating activities		27,960.3				30,376.8				(8.0	%)			7,181.9				7,620.1				(5.8	%)
Gain on disposal of assets		9.4				-								-				-
Net finance costs		(2,433.0	)			(3,015.6	)							(542.9	)			(727.6	)
Profit before income tax		25,536.7				27,361.2				(6.7	%)			6,639.0				6,892.5				(3.7	%)
Income tax expense		(5,884.0	)			(6,303.7	)							(1,540.8	)			(1,502.8	)
Profit and comprehensive profit		19,652.7				21,057.5				(6.7	%)			5,098.2				5,389.7				(5.4	%)
Earnings per share
Basic and fully diluted	$	0.93			$	0.97				(4.2	%)		$	0.24			$	0.25				(3.7	%)
Weighted average number of common shares outstanding
Basic and fully diluted (x 000)		21,218.7				21,769.8								21,087.5				21,459.0
EBITDA	$	32,377.2			$	34,954.8				(7.4	%)		$	8,295.5			$	8,698.9				(4.6	%)
		39.1	%			41.7	%							39.0	%			40.6	%
	31-Dec-24				31-Dec-23
Cash	$	14,393.6			$	13,979.2
Total assets	$	175,838.4			$	179,396.7
Total debt	$	37,393.2			$	46,167.1

The board of directors for Gamehost regularly review the Company's dividend policy. Gamehost has declared a regular monthly cash dividend for the month of March 2025 of $0.05 (CDN) per common share, which equates to $0.60 (CDN) per common share on an annualized basis. The dividend will be paid on April 15, 2025 to shareholders of record on March 31, 2025. This dividend is considered an "Eligible Dividend" and therefore, eligible for the enhanced gross-up and dividend tax credit available to Canadian shareholders.

This press release may contain certain "forward-looking information" or statements within the meaning of applicable securities legislation and may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans", "withstand", "further" or other similar expressions that suggest future outcomes or events. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including any statements that address expectations related to future economic outcomes or the Company's dividend. Forward-looking statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward-looking statements.

The Company has included non-International Financial Reporting Standards ("non-IFRS") measures in this press release. EBITDA, as defined by the Company, means earnings before interest and financing costs, income taxes, depreciation and amortization, and foreign exchange gains or losses. The Company believes EBITDA is a useful measure because it provides information to management and investors about the Company's performance in generating operating cash flow to fund working capital needs, service debt obligations, fund future capital expenditures and support dividend policy. Readers are cautioned that non-IFRS measures do not have any standardized meaning prescribed by IFRS and should not be taken as alternatives to net earnings measured in accordance with IFRS. The Company's method of calculating non-IFRS measures may not be comparable to similarly titled measures used by other reporting entities.

Gamehost is a corporation established under the laws of the Province of Alberta. The Company's operations are all located in the Province of Alberta, Canada. Operations of the Company include the Rivers Casino & Entertainment Centre in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and Encore Suites hotels as well as a strip mall all located in Grande Prairie and the Deerfoot Inn & Casino in S.E. Calgary.

These consolidated financial results include the accounts of Gamehost Inc. and its subsidiary, Gamehost Limited Partnership; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with the 2024 annual consolidated financial statements. Further, while the financial figures included in this announcement have been computed in accordance with IFRS applicable to annual periods, this announcement does not contain sufficient information to constitute an annual financial report. The Company will file an annual financial report for the twelve months ended December 31, 2024. This report will be filed in its entirety, along with historical financial reports on the Company's website at www.gamehost.ca and on SEDAR at www.sedar.com along with the Company's other continuous disclosure documents, when they are available.

Gamehost common shares trade on the Toronto Stock Exchange (TSX) under the symbol GH. For more information, contact:

Craig M. Thomas or Darcy J. Will
P (877) 703-4545
F (403) 340-0683
E ir@gamehost.ca

SOURCE: Gamehost Inc.

View the original press release on ACCESS Newswire

FAQ

What are Gamehost's (GHIFF) Q4 2024 financial results?

Q4 2024 showed revenue of $21.16M (-0.6% YoY), EBITDA of $8.29M (-4.6% YoY), and EPS of $0.24 (down from $0.25).

How much did Gamehost (GHIFF) increase its dividend in 2024?

Gamehost increased its monthly dividend by 25% to $0.05 per share ($0.60 annualized) effective November 2024.

What is Gamehost's (GHIFF) current debt position as of Q4 2024?

Gamehost reduced debt by $2.46M, maintaining a debt to EBITDA ratio of 1.2x at year-end 2024.

How did Gamehost's (GHIFF) regional operations perform in Q4 2024?

Calgary grew (revenue +2.7%, EBITDA +1.7%), while Grande Prairie and Fort McMurray declined, with weaker results moving northward.

What regulatory changes affect Gamehost's (GHIFF) gaming revenue?

AGLC extended the increased operators' share of electronic gaming device win from 15% to 17% until March 2026.