Operator News
US – Best Las Vegas locals’ results for 14 years boost Boyd’s Q3
By Phil - 23 October 2019
The acquisition of five casinos helped Boyd Gaming report third-quarter revenues of $819.6m, up from $612.2m in the third quarter of 2018 although the best quarter since 2005 in the Las Vegas Locals segment, also boosted performance, led by record performances at The Orleans and Aliante.
Results for the third quarter of 2019 include $212.9m in revenues and $62.1m in Adjusted EBITDAR from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on October 15, 2018; and Valley Forge Casino Resort, acquired by the Company on September 17, 2018. Third-quarter 2018 results included $5.8m in revenues and $1.1 million in Adjusted EBITDAR from Valley Forge.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “In the third quarter, our diversified nationwide portfolio continued to deliver growth in same-store revenues, Adjusted EBITDAR and margins, led by another outstanding quarter by our Las Vegas Locals business. Our newly acquired properties produced strong results under our ownership, with Adjusted EBITDAR growth of nearly 6% and margin improvement of more than 200 basis points on a combined basis. And we substantially expanded our sports-betting partnership with FanDuel Group, opening sports books at four new locations in the Midwest while successfully launching a market-leading mobile betting app in Pennsylvania. Our Company continues to deliver strong operating results, and we remain focused on executing a disciplined, balanced approach to creating long-term shareholder value.”
In the Las Vegas Locals segment, third-quarter 2019 revenues were $213.3m, up 2.2 per cent from $208.8m in the year-ago quarter. Third-quarter 2019 Adjusted EBITDAR increased 6.7 per cent to $64.1m, up from $60m in the third quarter of 2018.
The Las Vegas Locals segment achieved its highest third-quarter Adjusted EBITDAR since 2005, led by record performances at The Orleans and Aliante. Adjusted EBITDAR growth was driven by broad-based increases in gaming and hotel revenues, as well as margin improvement of nearly 130 basis points.
In the Downtown Las Vegas segment, revenues were $60.6m in the third quarter of 2019, up 2.5% from $59.2 million in the year-ago period. Adjusted EBITDAR was a third-quarter record $11.9 million, an increase of 4.7% from $11.4 million in the third quarter of 2018.
The segment delivered record results for the fourth consecutive quarter despite disruption from construction near the Company’s downtown properties. Results benefited from continued strength in the Company’s Hawaiian customer segments, as well as strong pedestrian traffic throughout the downtown area.
In the Midwest & South segment, revenues were $545.7m, up from $344.3m in the third quarter of 2018. Adjusted EBITDAR was $156.2m, compared to $97.8min the year-ago period. Results for the segment include contributions from the company’s newly acquired properties.
On a combined basis, the Company’s five newly acquired properties delivered Adjusted EBITDAR growth of nearly six per cent, as operating margins improved more than 200 basis points from their standalone results in the prior year. Same-store results were negatively impacted by flooding and property closures caused by tropical storms along the Gulf Coast in July and September. Absent these weather impacts, same-store results in the segment slightly exceeded the prior-year performance.
