Boyd Gaming’s stance as an aggressive buyer of casinos continues to pay off.
The company posted a 37.2 percent surge in revenues to $846.1 million for the three months that ended June 30 nearly three-quarters of the gain coming from the five casinos and the Illinois slot route the company purchased in 2018.
In light of the strong possibility that Caesars-Eldorado will be selling one or more Las Vegas Strip casinos, it’s no surprise that one of the big questions surrounding Las Vegas-based Boyd is: Will there be more?
“We view ourselves as a growth company. But anything we’ve looked at is through a disciplined approach and how it fits into our portfolio,” CEO Keith Smith said on the company’s July 27 earnings call.
Boyd hasn’t operated on the Strip since the days of the Stardust, a marquee name from the Vegas of yore which the company demolished to clear the way for a $3 billion megaresort called Echelon. In turn, Echelon was abandoned when the Great Recession hit. Boyd sold the site in 2013 to Genting for its Resorts World Las Vegas, slated to open next year.
As to whether Boyd plans to return to the Strip, Smith said that’s a calculation no different than any other.
“We view the Las Vegas Strip as we do with any acquisition. We’ll evaluate it, but we’re not going to do anything stupid. We think we are late in the economic cycle. We’re very cognizant of that and the market feels a little quiet right now.”
In its coverage of the call, CDC Gaming Reports noted that Boyd has acquired 15 casinos over the last eight years and now operates 29 properties in 10 states, including three in Downtown Las Vegas and seven in the lucrative Las Vegas locals market.
The 2018 acquisitions—Ameristar Kansas City and Ameristar St. Charles in Missouri; Belterra Resort in Indiana; Belterra Park in Ohio; and Valley Forge Casino Resort outside Philadelphia—accounted for all of the company’s 42.3 percent increase in adjusted cash flow in the second quarter. And the period’s biggest revenue jump—67 percent—also came from the Midwest/South region where they properties are located.
“Through ongoing marketing and operational initiatives, we are successfully growing visitation and expanding our customer base across the country,” Smith said. “In all, we are pleased with our progress and remain confident we are well-positioned to capitalize on future growth opportunities.”
Revenues were up 5 percent at the three Downtown Las Vegas casinos. The locals segment finished the quarter relatively flat with last year.
Net income company-wide came in at $48.5 million, a 24.5 percent increase, good for 43 cents per share.
