Boyd Gaming has announced a $300 million stock repurchase plan to be implemented amid growing confidence and record profits logged during the third quarter.
Boyd executives said during a third-quarter earnings call that growth in visitation and spending among its core customers fueled adjusted earnings growth of more than 42 percent and a nearly 400-basis point improvement in operating margins.
Among properties that serve Las Vegas locals, revenues grew 35 percent over 2020 and adjusted earnings grew by almost 60 percent. Downtown Las Vegas posted record third-quarter adjusted earnings on margins of 31 percent
“We believe there are still a number of revenue opportunities for us as we move into 2022,” said Keith Smith, president and CEO of Boyd Gaming. “As the labor market recovers and we’re able to rent all of our hotel rooms and open more of our amenities, we believe there are more revenue opportunities. As Covid restrictions are lifted—they’re lifting the mask mandate in Louisiana and here in Nevada, we still have a mask mandate and hopefully by mid-November that will run its course—we still have the opportunity to grow the business across the U.S. Out-of-town travel will continue to grow here in Nevada. Meeting and convention business will continue to grow in the U.S.”
Smith said many hotels have been operating below their capacity due to a tight labor market, but executives are confident that will correct itself as the industry continues to recover.
“In Downtown Las Vegas, we anticipate continued growth as tourism throughout the city recovers and Hawaiian visitation improves,” Smith said. “We also have opportunities for future growth in our midweek business and meeting and convention business. Overall, we expect to see further recovery in visitation throughout our portfolio as restrictions are lifted, Covid numbers improve, and travel resumes.”
