Supplier News
US – Boyd slides slightly in second quarter
By Phil - 5 August 2014
Boyd Gaming has reported second-quarter 2014 net revenues of $722.5m, compared to $738.7m during the same quarter in 2013.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Our second-quarter results were below expectations, principally due to continued weakness in casual play. We are actively addressing this on several fronts, including strengthening our senior management team, refining our marketing strategies, and repositioning targeted non-gaming amenities. We also continue to strengthen our balance sheet, and are on track for $200m in additional debt reduction in 2014. Despite a tough operating environment, we remain diligently focused on improving our performance and generating long-term growth.”
In the Las Vegas Locals segment, second-quarter 2014 net revenues were $148.3m, compared to $149.7m in the year-ago quarter, while second-quarter 2014 Adjusted EBITDA was $36.6mversus $38.7m in the second quarter of 2013. Revenue and EBITDA during the quarter benefitted from continued growth in our non-gaming business, offset by lower hold and significantly higher utility costs.
In the Downtown Las Vegas segment, net revenues were $55.6m in the second quarter of 2014, versus $56.1 million in the year-ago period. Adjusted EBITDA was $8.6m in the current period, compared to $9.3m in the second quarter of 2013. “Though the entire Fremont Street area saw unusually low visitation levels in May and June, we increased our market share in Downtown Las Vegas during the quarter. Visitation has since recovered,” Mr Smith added.
In the Midwest and South segment, net revenues were $209.1m, compared to $224.3m in the second quarter of 2013. Adjusted EBITDA was $42.2m versus $48.6m in the year-ago period.
Increased gaming capacity impacted our operations in the Biloxi, Shreveport and central Illinois markets. These markets accounted for virtually all of the EBITDA decline in the Midwest and South segment.
During the second quarter of 2014, the Peninsula segment reported net revenues of $127.8m and Adjusted EBITDA of $45.3m. This compares to net revenues of $135.8m and Adjusted EBITDA of $48.3m in the second quarter of 2013.
Kansas Star’s year-over-year EBITDA trends improved from the first quarter to the second. On a year-over-year basis, Kansas Star increased margins in the second quarter by 255 basis points to 45.2 per cent. The company also continued the introduction of the B Connected player loyalty program at the five Peninsula properties, and expects to complete the rollout by the end of the third quarter of 2014.
Borgata, the company’s 50 per cent joint venture, reported second-quarter 2014 net revenues of $181.9m, including$6.7m from its online gaming operations. This compares to $172.9m in revenues reported in the year-ago period. Adjusted EBITDA, which included an $11.8m property tax-related benefit, was $42.6m in the second quarter of 2014, up from $27.8m in the year-ago period. Excluding the tax-related benefit, Borgata’s Adjusted EBITDA rose nearly 11 per cent year-over-year.
The property saw growth in slots, table games and hotel revenues. Borgata continued to outperform the competition, growing its share of the Atlantic City gaming market by more than 240 basis points during the quarter.
