Boyd Gaming suffers rough 2020 but officials see better days ahead

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2020 was a rough year for Boyd Gaming Corp., but executives are optimistic for a brighter 2021.

The Las Vegas-based company reported $2.18 billion in revenues all through 2020, down greater than $1 billion from the 2019 whole of $3.33 billion, in response to monetary reviews. Boyd reported a web lack of $134.7 million final year in contrast with web revenue of $157.6 million in 2019.

“For obvious reasons, we are happy to close the books and move beyond 2020,” Boyd Executive Vice President and Chief Financial Officer Josh Hirsberg advised buyers on an incomes name Tuesday. “On the other hand, 2020 has created exciting opportunities for our company for this year and the future.”

Boyd’s downtown hotel-casinos have struggled in the course of the pandemic whereas its locals properties within the Las Vegas Valley fared better because the year progressed, executives advised buyers.

Company officials see a possible second-half return of tourism spurred by vaccine rollouts and the current easing of restrictions as causes to consider better days space ahead.

Fremont and California Hotel, Boyd’s two open downtown properties, suffered with out normal vacationer visitation downtown, President and CEO Keith Smith stated Tuesday. Compounding the problem was low visitation from its key Hawaiian buyer demographic whereas the islands’ strict journey restrictions stay, he stated.

“I don’t see much of a change in the trajectory of that business over the next three to six months,” Smith stated. He anticipates it’ll be “a number of months” earlier than the company resumes its Hawaiian constitution flights.

Main Street Station in downtown and Eastside Cannery off Boulder Highway are Boyd’s two locals properties but to reopen.

The downtown business phase generated $94.5 million in income throughout 2020, down from $257.7 million in 2019. It’s fourth quarter revenues had been down 73.9 % year-over-year to $18.2 million, “reflecting continued weakness in tourism to the southern Nevada market, particularly from the segment’s core Hawaiian customer base,” the company reported.

Its Las Vegas locals phase stayed afloat in 2020 via a “resilient” buyer base, Smith stated. Those properties, which embody Aliante, Sam’s Town, Cannery, Gold Coast and others, introduced in revenues of $161.5 million in the course of the fourth quarter in contrast with $223.9 million throughout the identical interval in 2019.

The Orleans, nevertheless, struggled throughout 2020 as a result of “softness” of business and vacationer journey, Smith stated. He stated the company is working to get approval for giant conferences and gatherings underneath Gov. Steve Sisolak’s most-recent directive.

In a launch earlier Tuesday, Smith pointed to a constructive sign up reaching “record Companywide operating margins for the second consecutive quarter, as nine properties nationwide set fourth-quarter EBITDAR records.”

He additionally cited “encouraging results” from on-line gaming. “Through our partnership with FanDuel, we are benefiting from strong growth in mobile sports betting, and expect further upside as we prepare to launch a Stardust-branded iCasino in Pennsylvania in April, pending regulatory approval.”

Streamlining operations over the course of the year improved the company’s margins to report highs within the third and fourth quarters, the latter at 33.1 %, Smith stated on the earnings name. Boyd eradicated its leisure division over the summer time and laidoffthousands of staff on account of the pandemic.

The company introduced Monday its plans to roll out a digital pockets program over the course of 2021.

Boyd shares, traded as BYD on the New York Stock Exchange, closed at $53.85. It was the second-highest closing value for the reason that pandemic started, trailing solely the $54.60-per-share value on Feb. 8.

Contact Mike Shoro at [email protected] or 702-387-5290. Follow @mike_shoro on Twitter.

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