Boyd’s Las Vegas casinos post second quarter gains
August 05, 2016 8:13 AM
by Phil Hevener
Boyd Gaming executives stressed the company’s strengthened position in the strong Las Vegas locals market Thursday during a third quarter conference call with financial analysts and shareholders.
“The second quarter was a significant time for our company,” Boyd CEO Keith Smith said. “With the acquisitions of Aliante and the Cannery properties, we will be expanding our presence in the high growth Las Vegas locals market.
Smith said Boyd’s “amenities investment initiative” that includes a number of new restaurants “continued to drive growth in non-gaming revenue during the quarter.” Solid operating performance in April and June were partially offset by “challenging” year-over year comparisons in May 2015 when one-time citywide events such as the Rock in Rio music festival and the Mayweather-Pacquiuao fight drove unusually strong visitation to the Las Vegas market.
The single biggest event impact on Boyd’s balance sheet during the second quarter was the sale of the company’s half of the Atlantic City Borgata to its partner MGM. The company’s share of second quarter net income generated by the Borgata was $18.7 million compared to $6 million in the same 2015 period.
Thew casinos that Boyd puts in a Las Vegas locals category – properties such as Sam’s Town and the Orleans – achieved their fifth consecutive quarter of revenue growth. Down properties such as the Fremont and California Club achieved their sixth straight quarter of revenue growth.
During June. total employment in the Las Vegas area reached an all-time high with a more diversified employment base than we saw before the recession