Construction, weak regional performance hold back Boyd Gaming

1 November 2013

LAS VEGAS -- Construction in downtown Las Vegas and weak performance in Boyd Gaming Corp.’s Midwestern and Southern properties accounted for third quarter losses, the company reported Thursday.

For the third quarter that ended Sept. 30, Boyd Gaming Corp. announced a loss of $8.3 million, or 8 cents per share, compared to a loss of $8.8 million, or 10 cents per share, for the same period in 2012.

Net revenues totaled $738.6 million, up 20.6 percent from $612.4 million in the third quarter of last year.

“Our third-quarter performance fell below our expectations, as solid results in July and August were offset by significant weakness in September in many of our markets,” Keith Smith, president and chief executive officer of Boyd Gaming, said in a statement. “However, October year-over-year results have shown improvement in most of our operations.”

In addition to its seven Las Vegas properties, Boyd Gaming Corp. has five casinos in Louisiana, two in Mississippi, two in Iowa, and one per state in Illinois, Indiana, Kansas and New Jersey.

In Las Vegas locals casinos, which include The Orleans, Gold Coast, Suncoast and Sam’s Town, Boyd reported a third-quarter net revenue of $140.3 million, up 1.1 percent from 138.8 million last year.

Downtown, at the California Hotel, Fremont and Main Street Station, Boyd reported $52.7 million third quarter revenues, down from $53.5 million one year ago. Company officials attributed losses to construction and road work in the area, which reduced visitation.

On a conference call regarding third-quarter earnings, Boyd executives said they are working to improve yield on the company’s Hawaii charter service, and expect the opening of the Downtown Grand and the relocation of Zappos online shoe retailer’s headquarters to drive business downtown.

Borgata, the company’s 50 percent joint venture in New Jersey, experienced a 6.9 percent increase in earnings — at $200.1 million this quarter compared to $187.1 in 2012.

Revenues for properties in the Midwest and South were down $18.2 million this quarter with $214.8 million, compared to $233 million in the third quarter of last year.

Looking forward, Boyd said it was on track to launch online gaming in New Jersey.

On Oct. 9, Borgata received the first Internet Gaming permit granted by New Jersey Division of Gaming Enforcement. Online gaming in the state is allowed starting Nov. 26. Smith said Boyd would focus on third-party content from major slot machine companies, adequate testing to ensure the location of customers and several payment options.

The corporation also emphasized the launch of an enhanced bonus program at Penny Lane, its nationwide penny slot destination launched in November 2012. “More bonuses, more often” features bonus rounds including prize wheel spins, skee ball and horse and car racing that can be played simultaneously with penny slots. A marketing campaign featuring “Cool Abe,” a character based on Abraham Lincoln, the president on the penny, will accompany the rollout.

The bonuses will debut Nov. 3 at all of Boyd’s Las Vegas properties, as well as Louisiana casinos Treasure Chest Casino and Delta Downs Racetrack Casino Hotel. Pending approval, the machines will debut at five other hotel-casinos, including Blue Chip in Indiana, IP in Mississippi, Par-A-Dice in Illinois, Sam’s Town in Louisiana and Sam’s Town in Mississippi.

Related Links
Boyd Gaming Gaming Vendor Information


Copyright GamingWire. All rights reserved.
Featured Vendors
Sunkist Graphics, Inc.
Regulatory Management Counselors, PC
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Shenzhen ZhengYuanTai Technology Co., Ltd.
Talisman Group Creators of EZ Baccarat
Shenzhen ZhengYuanTai Technology Co., Ltd.
14 years experienced gaming display manufacturer: open frame, curved, and halo monitors
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Casino City Press
Slot Machines Unlimited
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Oklahoma Indian Gaming Association (OIGA) Conference
Casino Network
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Top One Tech Limited
AmericanChecked
Top One Tech Limited
Global Touch solution partner of choice, 10+ years OEM manufacturing, 100,000+ units application
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Casino Schedule Ease
Rymax Marketing Services, Inc.
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Dable Advisory & Consulting Services
Imagine This
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Players Pal
TribalHub
Players Pal
Revolutionize the way you connect with your casino players with the Players Pal mobile app
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Texas Slots & Gaming
Betson Imperial Parts & Service
Texas Slots & Gaming
Wholesale gaming reimagined. Texas Slots & Gaming is your sustainable gaming partner.
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!


Your Guide to 14,944 Gaming Industry Suppliers