Casino stake boosts Gamehost

Gamehost Income Fund’s (TSX: GH:UN) revenues and earnings rose for the second quarter, with the numbers boosted by the Red Deer-based trust’s acquisition of a bigger stake in a Calgary casino.

Gamehost Income Fund’s (TSX: GH:UN) revenues and earnings rose for the second quarter, with the numbers boosted by the Red Deer-based trust’s acquisition of a bigger stake in a Calgary casino.

In a release issued on Monday, Gamehost said its revenues for the three months ended June 30 were $16.2 million, up from $12.1 million for the same period in 2009. Operating income was $6 million, an improvement from $4.9 million.

In late March, Gamehost announced that it had struck a deal to increase its 40 per cent interest in the Deerfoot Inn and Casino to 91 per cent. Unitholder approval it a month later.

Gamehost also owns and operates the Boomtown Casino in Fort McMurray, and the Great Northern Casino, Service Plus Inns & Suites and a strip mall in Grande Prairie.

It said business at the Boomtown Casino remains slow, but things have picked up at the Service Plus hotel and the outlook is promising for Great Northern Casino. The hotel and convention business at Deerfoot Inn and Casino has shown quarterly and annual growth, it added.

At the unitholder meeting in April, Gamehost received approval to convert to a corporation no later than January 2011.