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Boyd returns to profit in Q1 as gaming growth offsets hospitality decline

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Boyd Gaming enjoyed a rise in profit and overall revenue in Q1, as growth in gaming revenue offset the fact that hospitality revenue dropped considerably year on year.

The revenue for this quarter totaled at $753.3m, a rise of 10.0% compared to the previous first quarter.

As usual, gaming made up a majority of the revenue with $617.9m, a 21.2% increase year on year. Food and beverage revenue came to $44.1m this quarter, a drop of 50.9% compared to the first quarter of 2020.

Room revenue dropped by 43.2%, compared to January-March 2020, to $26.0m.

Boyd’s locations saw mixed results this quarter. The operator’s Las Vegas local venues brought in $182.4m a rise of only 0.9% compared to the previous year’s first quarter.

The Downtown Las Vegas location suffered this quarter, with a total revenue drop of 60.4% to $21.4m year-on-year.

However, the Midwest and South locations saw an increase in revenue to $549.4m a rise of 23.3%.

In total, costs came to $559.5m, leaving the overall operating income at $193.7m.

Gaming was also the source of the the largest costs this quarter at $232.1m, a decrease of just 2.8% from the first quarter of 2020. Selling, general and administrative costs totaled at $90.0m, a drop of 20.7% year on year. Depreciation and amortization also dropped by only 3.7% to $64.4m.

Interest on expenses came to $59.3m, bringing the total to income to $134.4m. The income tax benefit of $32.2m brought the total net income for Boyd to $102.1m. In the first quarter of 2020 Boyd recorded a loss of $147.5m in net income, meaning that income increased by 169.21%.

“As economic conditions improve and COVID vaccinations continue to roll out, we are seeing increased visitation and growing spend-per-visit across every customer segment.” said Keith Smith, president and chief executive officer of Boyd.

Last year, Boyd laid off 284 Las Vegas employees due to the effects of the pandemic.