US – Boyd’s fourth quarter boosted by casino acquisitionsBy Phil - 25 February 2019
A series of casino acquisitions paid of US operator Boyd Gaming, who reported fourth-quarter revenues of $791.6m, up 33 per cent from $595.1m in the fourth quarter of 2017.
Results for the fourth quarter of 2018 include $186.8m in revenues and $48m in Adjusted EBITDAR from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on October 15, 2018; Valley Forge Casino Resort, acquired by the company on September 17, 2018; and Lattner Entertainment, acquired on June 1, 2018.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “The strategic initiatives we have executed over the past several years continued to pay off in the fourth quarter of 2018. Our recent acquisitions, efficiency programs and marketing refinements all contributed to strong results. We delivered revenue, Adjusted EBITDAR and margin growth in every segment of our business in the fourth quarter as well as the full year. Our consumer remains healthy, and we believe we are in a solid position to continue creating value for shareholders in 2019 and beyond.”
Mr. Smith continued: “During the full year 2018 we diversified our nationwide portfolio and significantly enhanced our free cash flow profile with the acquisition of six new assets across five states. We also entered into a strategic partnership with FanDuel Group, providing us a market-leading partner to pursue sports-betting and mobile wagering opportunities now emerging across the United States. And we continued to successfully execute a balanced approach to capital allocation, returning capital to shareholders while actively investing in strategic growth opportunities and prudently controlling leverage.”
In the Las Vegas Locals segment, fourth-quarter 2018 revenues were $222.6m, increasing from $219.8m in the year-ago quarter. Downtown Las Vegas delivered $67.3m in the fourth quarter of 2018, up from $65.1 million in the year-ago period. Strong operating trends continued throughout the segment, with further gains in pedestrian traffic as well as increased visitation from Hawaiian customers. Operational efficiencies and marketing improvements also contributed to an increase of more than 155 basis points in operating margins.
In the Midwest and South segment, revenues were $501.8m, up from $310.2m in the fourth quarter of 2017.