Boyd Gaming profits up, despite revenue fall at Las Vegas casinos
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Boyd Gaming Corp. on Tuesday reported better financial results even as revenue fell at its Las Vegas casinos.
The Las Vegas company separately announced new gaming development deals in California and Florida.
Boyd reported a second-quarter profit of $977,000, or 1 cent per share, an improvement from a loss in the year-ago quarter of $2.95 million, or 3 cents per share.
Net revenue increased from $574.4 million to $615.2 million, thanks in part to Boyd’s acquisition of the IP casino resort in Biloxi, Miss., in October.
Boyd said that despite strengths at its casinos in the South and Midwest, net revenue fell at its Las Vegas locals casinos, one of its largest business divisions.
These properties are Sam’s Town, the Orleans, the Gold Coast and the Suncoast. They’ve been hurt by high unemployment and foreclosures and stiff competition from Station Casinos LLC.
During the second quarter, net revenue at these properties fell 2.9 percent to $149 million.
Boyd said that while visitation and spending by top-tier customers remained strong at the Las Vegas locals casinos, the properties were hurt by “declines in business volumes from casual gaming customers.”
The company’s downtown Las Vegas casinos generated net revenue of $55.9 million, down from $56.6 million. Boyd attributed this to changes in its Hawaiian marketing programs and said business should rebound in the third quarter.
Boyd separately announced deals to potentially develop gaming projects at the site of the BankAtlantic Center in Sunrise, Fla.; and in Sacramento County, Calif., in conjunction with the Wilton Rancheria tribe.
These potential expansions are on top of Boyd’s previously announced $1.45 billion acquisition of Peninsula Gaming LLC, which will add five casinos in Kansas, Iowa and Louisiana to Boyd’s portfolio.