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Boyd Gaming returns to profit in H1 as revenue rockets 85.0%


US land-based casino operator Boyd Gaming returned to profit in the first half of its financial year after reporting an 85.0% year-on-year increase in revenue.

Total revenue for the six months to June 30 amounted to $1.65bn, up from $890.4m in the same period last year.

Boyd’s first half performance in 2020 was significantly impacted by the novel coronavirus (Covid-19) pandemic, which led to the closure of its casinos from mid-March. In contrast, Boyd’s properties remained opened for the entire first half this year, though most faced certain operating restrictions such as capacity limits and social distancing.

Gaming revenue jumped 93.6% to $1.35bn while food and beverage revenue increased by 1.0% to $101.5m, room revenue 21.5% to $65.1m and other revenue 226.6% to $134.9m.

In terms of location, Boyd’s Midwest and South casinos led the way by generating $1.17bn in revenue, up 94.0% year-on-year. Revenue from Las Vegas local casinos climbed 73.8% to $60.2m, while Downtown Las Vegas casino revenue edged up 2.4% to $60.2m.

Operating costs climbed 6.6% to $1.19bn, leaving an operating profit of $460.1m, compared to a $224.1m loss last year, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rocketed by 466.4% to $625.9m.

After taking into account $179.7m in other costs, including $113.0m of interest expense, Boyd posted a $280.4m profit before tax, up from a $256.1m loss in 2020. After paying $64.5m in income tax, this left a net profit of $215.9m, compared to a $256.1m loss last year.

Turning to the second quarter and revenue for the three months to June 30 amounted to $893.6m, up 325.8% year-on-year.

Midwest and South casino revenue hiked 295.3% to $618.7m, while Las Vegas local revenue jumped 384.9% to $236.1m and Downtown Las Vegas revenue hiked 731.5% to $38.8m.

Operating costs were up 111.8% to $627.3m, but the increase in revenue meant that the operating loss of $86.3m in 2020 turned into a $266.3m profit, while earnings before interest, tax, depreciation and amortisation (EBITDA) improved from a $9.3m loss to a positive figure of $359.2m.

After accounting for $120.4m in other costs, profit before tax reached $146.0, up from a loss of $145.5m in 2020. Boyd paid $32.2m in income tax, meaning it ended the quarter with a net profit of $113.8m, compared to a $108.5m loss last year.

“Our second-quarter results reflect the strength of our operating strategy as our streamlined cost structure, enhanced capabilities and focus on our core customers all continue to drive strong results throughout our portfolio,” Boyd’s president and chief executive Keith Smith said.

“During the quarter our business continued to strengthen, as gaming revenues surpassed 2019 levels. These outstanding results are a tribute to the hard work of the entire Boyd Gaming team and their shared dedication to our transformed operating model, which will continue to create long-term value for our stakeholders.”