Officials at Boyd Gaming Corporation said Hurricane Harvey, which struck the Texas coast as a Category 4 Hurricane on August 25, had more of an effect on business than the October 1 shootings on the Las Vegas Strip which killed 58 people and injured 546 attending a music festival.
Boyd Gaming Chief Executive Officer Keith Smith told Wall Street analysts in the days following the shootings, properties near the Strip experienced a slight increase in cancellations, but business quickly returned to normal. “We are not really seeing an impact to the overall business,” Smith said in regard to the shootings. He said construction at the Palms is driving some business to Boyd’s nearby Orleans and Gold Coast properties.
Smith said Boyd’s Las Vegas gaming business is an “extremely strong market” with downtown showing “no signs of slowing.” He said solid job and wage growth and rising home prices in Nevada also contribute to the strength of the market. “The state’s economy is much healthier, much more diversified,” Smith stated. He added Boyd is interested in acquiring additional gaming assets in Nevada.
Boyd’s third-quarter results showed net revenue grew 11 percent to $588 million from $532 million in third quarter 2016, due to increases at the Las Vegas properties Aliante Hotel, Cannery and Eastside Cannery acquired late last year. Las Vegas locals net revenue soared39 percent to $207 million. Downtown Las Vegas net revenue grew 3.9 percent to $58.8 million.
Operating income companywide rose 16 percent to $78.6 million. Net profit though dropped to $22.9 million from $343 million because the company did not repeat any one-time tax breaks and assets sales in the quarter; last year in the third quarter the company posted a tax benefit of $190 million plus a $180 million gain from selling a gaming property.
