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Revenue and profit up at Boyd Gaming in Q3 as Covid-19 recovery continues


Boyd Gaming reported a year-on-year increase in revenue and net profit during the third quarter of its 2021 financial year as easing novel coronavirus (Covid-19) restrictions in the US saw more players return to its casinos.

Revenue for the three months to the end of September amounted to $843.1m, up 29.3% from $652.2m in the same period last year.

This was mainly due to casinos now operating at near-full strength, having faced certain measures and limitation last year as a result of the pandemic.

Boyd’s casinos in the Midwest and South region were the main source of income during the quarter, with revenue at these locations reaching $569.8m, an increase of 22.9% on 2020.

Las Vegas local casinos generated $231.3m, up 35.2% year-on-year, while Boyd’s Downtown Las Vegas casinos experienced the largest increase, with revenue at these sites rising 140.2% to $42.1m in Q3.

In terms of business segments, gaming drew the most revenue, with Boyd reporting a 19.1% rise in revenue to $674.2m. Food and beverage revenue climbed 57.5% to $61.1m, while room revenue increased 64.7% to $44.3m and other revenue jumped 202.8% to $63.4m.

Turning to costs and total operating expenses for the quarter were up 18.0% to $619.9m, and after also including $44.9m in financial costs, this left a pre-tax profit of $178.3m, up 156.9% year-on-year.

Boyd also noted property adjusted earnings before interest, tax, depreciation, amortization and rent (EBITDAR) increased 42.6% to $340.7m, with a margin go 40.4% after corporate expenses.

The operator paid $40.1m in tax, resulting in a net profit of $138.2m for the quarter up 262.7% from $38.1m last year.

Boyd also published its year-to-date results, with revenue in the nine-month period to the end of September reaching $2.49bn, an increase of 61.4% from the same point in 2020.

Midwest and South casino revenue was some 63.0% higher at $1.74bn, while Las Vegas local casino revenue jumped 62.3% to $649.8m and Downtown Las Vegas revenue 34.2% to $102.4m.

Operating costs were 10.6% higher at $1.81bn, but property adjusted EBITDAR rocketed by 155.1% to $1.02bn, while a net loss of $218.0m was turned into a profit of $354.1m.

“Since reopening our properties last year, we have made fundamental changes to our operating philosophy ‒ sharpening our focus on building loyalty with core customers while executing our business at a much higher level of efficiency,” Boyd president and chief executive Keith Smith said.

“Continued growth in visitation and spending among our core customers, combined with our more efficient operating model, resulted in a third-quarter company-wide revenue record, EBITDAR growth of more than 42%, and a nearly 400-basis point improvement in operating margins.

“As the pandemic recedes, restrictions are lifted and additional guests return to our properties nationwide, we are confident in our ability to drive continued revenue and EBITDAR growth throughout our business.”

The results announcement comes after Boyd this month linked up with Aristocrat Gaming, part of Aristocrat Leisure, and Genesis Gaming to trial cashless table games in the state of Nevada.

Powered by Aristocrat’s digital wallet technology, Boyd Pay Wallet is being trialled at Boyd’s Aliante Casino Hotel and Spa in North Las Vegas.

Boyd Pay Wallet will be integrated into Boyd Gaming’s B Connected app, allowing players to use their mobile device to fund table game wagers without having to physically withdraw cash from an ATM or redeem tickets and chips at casino cages.

After logging into the B Connected app, players can use the Boyd Pay Wallet technology to buy into the game, using traditional casino chips for actual play. After players have finished, they have the choice of keeping their casino chips or transferring funds directly back to Boyd Pay Wallet.