Boyd Gaming execs ready for 2021 upturn as dismal 2020 closes

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LAS VEGAS (KLAS) — Make no mistake, Boyd Gaming is completely satisfied to shut the books on 2020. But it wasn’t all unhealthy, and the company believes it may well carry momentum into 2021 after a stable fourth quarter.

“The setup for 2021 could be quite nice,” in accordance with President and Chief Executive Officer Keith Smith.

For the total year 2020, Boyd Gaming reported revenues of $2.18 billion, in comparison with $3.33 billion for the total year 2019. Boyd reported a internet lack of $134.7 million in 2020 after making $157.6 million in 2019.

Despite a COVID-19 surge in November and December, Boyd reported fourth-quarter revenues of $635.9 million, in comparison with $833.1 million within the fourth quarter of 2019. That netted $83.3 million, in comparison with $24.3 million in 2019.

One measure of profitability — EBITDAR — places that at a 33% enchancment over 2019, and the company says 9 of its properties set information for EBITDAR in the course of the fourth quarter.

That upturn, together with the stay-away-for-now perspective of Boyd’s older clients, provides executives cause for optimism as vaccination progress improves and COVID numbers decline.

Smith took time in the course of the fourth-quarter earnings name to reward staff, who’ve made the shift to new business practices work

Boyd has achieved increased revenue margins — together with most different casinos — on classes that had been confirmed in the course of the pandemic. Spending on sectors of the business that weren’t extremely worthwhile has stopped, and casinos are simply ready for individuals to enterprise out after months of cautious habits.

Boyd is a few months away from debuting an iGaming product in partnership with Aristocrat, and its sports activities gaming partnership with FanDuel is already enhancing the company’s backside line. Company executives are excited in regards to the development alternatives for each of these partnerships.

Boyd Pay — a digital “cashless wallet” for smartphones — will combine into on-line merchandise and supply a “seamless experience for customers, wherever they choose to play with us,” in accordance with Chief Financial Officer Josh Hirsberg.

And over the course of the pandemic, when leisure decisions have been tremendously decreased, Boyd has strengthened its position with youthful gamblers.

“The cadre of customers has been largely the same” for the previous six months, Hirsberg mentioned. Boyd expects income to develop when older clients return. “When that will happen is anybody’s guess,” he mentioned.

Boyd operates 10 properties in Las Vegas:

  • Aliante Casino + Hotel + Spa
  • The Orleans Hotel & Casino
  • Gold Coast Hotel & Casino
  • Suncoast Hotel & Casino
  • Sam’s Town Las Vegas
  • Eastside Cannery Casino & Hotel
  • Cannery Casino Hotel
  • California Hotel Casino
  • Fremont Hotel & Casino
  • Main Street Station Casino Brewery Hotel

The Orleans, which depends extra closely on conventions and vacationers than different Boyd properties, has been slower to recuperate than different casinos, however native gaming has been robust elsewhere.

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