Operator News
US – Record breaking Boyd boosted by new casinos
By Phil - 22 February 2018
With 11 quarters of same store EBIDTA gains, Boyd Gaming has enjoyed a good few years of organic growth. A closer inspection of its figures show though that its record annual revenue of $2.38bn in 2017, was fuelled by its newly bought casinos in Aliante, Cannery Casino, and Eastside Cannery.
Boyd Gaming achieved record fourth-quarter net revenues of $590.8m, an increase of 6.5 per cent from $554.8m in the fourth quarter of 2016.
In the Las Vegas Locals segment, fourth-quarter 2017 net revenues were $217.6m, up from $185.7m in the year-ago quarter. Fourth-quarter 2017 Adjusted EBITDA grew to $64.5m, compared to $52.8m in the fourth quarter of 2016. Fourth-quarter 2017 results include a full quarter of contributions from Cannery and Eastside Cannery, both acquired on December 20, 2016.
On a same-store basis, the Las Vegas Locals segment, including Aliante, posted its fourth consecutive quarter of double-digit Adjusted EBITDA growth, as every major Locals property reported year-over-year increases in both revenue and Adjusted EBITDA. Same-store operating margins also continued to improve, rising 265 basis points year-over-year. Results benefited from continued operating efficiencies, refinements to marketing programs and strong economic conditions.
During the fourth quarter, Cannery and Eastside Cannery each continued to grow Adjusted EBITDA at a double-digit pace over their 2016 standalone results. Results at these properties reflect the realization of synergies, marketing and operational enhancements, and a growing regional economy.
In the Downtown Las Vegas segment, net revenues were $64.4m in the fourth quarter of 2017, up 3.9 per cent.
The Midwest and South segment brought net revenues of $308.8m, an increase from $307.2m in the fourth quarter of 2016.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Boyd Gaming finished a strong year with a record fourth-quarter performance, as every segment of our business delivered growth in net revenues, Adjusted EBITDA and operating margins. Our Nevada operations continued their long-term growth trajectory, with our 11th consecutive quarter of same-store Adjusted EBITDA gains in our Las Vegas Locals segment. Our regional operations showed further improvement, as our Midwest and South segment posted its best performance of the year. And we laid the groundwork for future growth, reaching agreements in December to acquire five properties in the Midwest and Northeast. In all, 2017 was an exceptional year for our Company, as we created significant value for our shareholders and positioned ourselves to continue delivering growth.”
