Supplier News
US – Boyd turns revenues around in third quarter
By Phil - 23 October 2015
Locals operator Boyd Gaming has managed to reverse a net loss from the third quarter last year with increases in GGR in its four major markets; the Las Vegas locals market, Downtown Las Vegas, the Midwest and South segment and Atlantic City’s Borgata.
Boyd reported net income of $25.4m compared to a loss of $15.1m a year ago with revenue for the quarter increasing 3.3 per cent to $546.5m.
The key has been the company’s development initiative to enhance restaurants, hotel rooms and other nongaming amenities in its key markets. In Las Vegas, the company is completing a remodel of the oyster bar at the Suncoast and will begin a complete renovation of the restaurant offerings at The Orleans.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “The positive momentum that began late last year carried into the third quarter, as we continued to deliver strong growth in revenues and profitability. Increased consumer spending and effective marketing programs drove revenue growth across the portfolio, and our efficiency efforts delivered strong flow-through to the bottom line. Additionally, our long-term strategic initiative to enhance amenities in key markets resulted in continued non-gaming revenue growth. In all, this was another successful quarter for our Company, as we continued to generate increased value for our shareholders.”
In the Las Vegas Locals segment, third-quarter 2015 net revenues increased 4.8 per cent to $148m, led by particularly strong performances at The Orleans and Gold Coast.
In the Downtown Las Vegas segment, net revenues rose $3.3mto $56.7m. In the Midwest and South segment, net revenues were $215.8m, an increase of 2.4 per cent. Refinements to operations and marketing programs led to margin improvement of more than 230 basis points across the Midwest and South and Peninsula segments.
Borgata meanwhile reported third-quarter 2015 net revenues of $237.5m, increasing 13.1 per cent.
