Business
Gamehost Announces Second Quarter 2019 Financial Results and August Dividend
Not Intended for Distribution to U.S. Newswire Services or for Dissemination in the U.S. ...
About this update from Gamehost Inc.
[{"type":"text","content":"Gamehost Announces Second Quarter 2019 Financial Results and August DividendNot Intended for Distribution to U.S. Newswire Services or for Dissemination in the U.S.RED DEER, AB / ACCESSWIRE / August 13, 2019 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the “Company”) present results for the six- and three-month periods ended June 30, 2019 (the \"Period\" and \"Quarter\" respectively).Operating revenue for the Quarter was down 5.6% from the prior year or $1.0 million to $16.8 million even with contributions from the new Encore Suites hotel. Shareholder earnings were flat to the prior year quarter on a one-time gain resulting from a reduction to corporate tax rates in Alberta. Otherwise, shareholder earnings were down $1.1 million or 24.4% to $3.4 million from $4.5 million the prior year. Earnings per common share for the Quarter were $0.19 versus $0.18 in Q2 2018. Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) that is attributable to shareholders of the Company (\"EBITDA to Shareholders\") was down $0.9 million or 12.7% to $6.2 million compared to $7.1 million in the same quarter of 2018. EBITDA to Shareholders margin for the Quarter was 3.5 percentage points lower than the same quarter in 2018 at 38.5% compared to 42.0%.A general reduction in discretionary consumer spending in the province and reduced corporate travel continues to weigh on revenue generation. Wet weather in energy intensive regions of the province also hampered results. Comparative figures also reflect the final lift of a four-year staged increase in provincial minimum wage rates to $15.00 per hour effective October 2018 putting added pressure on the bottom line.Following the spring election, Alberta's new conservative government was quick to put into place promises made on the campaign trail. Of immediate benefit to Gamehost is the governments Bill 3 - Job Creation Tax Cut which reduces corporate taxes by 1.0% effective July 1, 2019. Additional 1.0% reductions will follow annually on January 1st of each of the next three years reducing Alberta's corporate tax from 12.0% to 8.0% by 2022. Gamehost Inc. Financial Highlights Unaudited - Canadian dollars (millions except per share figures) six months ended June 30three months ended June 30 20192018% Change2019 2018% Change Operating reven...