May 10, 2010 / 8:54 PM / in 9 years

UPDATE 1- Great Canadian Gaming posts Q1 profit

* Q1 EPS C$0.05 vs loss/shr C$0.02

* Q1 rev down 3 percent

May 10 (Reuters) - Great Canadian Gaming Corp (GC.TO), an operator of casinos and thoroughbred racetracks, posted a quarterly profit compared with the year-ago period when it took a restructuring charge, but said many of its properties continue to be impacted by the challenging economy.

For the first quarter, the company posted net earnings of C$6.3 million, or 5 Canadian cents a share, compared with a loss of C$2.0 million, or 2 Canadian cents a share a year ago. The company had taken a restructuring charge of C$11.3 million last year.

However, revenue fell 3 percent to C$93 million, as its operations continued to experience a challenging economic environment, the company said in a statement.

Analysts on average were expecting the company to earn 8 Canadian cent a share, on revenue of C$94.95 million, according to Thomson Reuters I/B/E/S.

“Great Canadian’s results for the first quarter of 2010 present a mixed outlook for the year ahead,” Chief Executive Ross McLeod said.

He added its customers across Canada have become more conservative in their entertainment spending even though the number of people visiting its properties have increased.

Boulevard, its second largest property, is facing challenges from both a competitor’s facility and disruption related to provincial highway enhancements, the company said.

Shares of the company closed at C$7 Monday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian) (; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:

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