Covid took a 20 per cent bite out of Boyd Gaming’s third-quarter 2020 revenues, which came in at $652.2m, compared to $819.6m in the third quarter of 2019. The company recorded net income of $38.1m, or $0.33 per share, for the third quarter of 2020, compared to net income of $39.4m, or $0.35 per share, for the year-ago period.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “During the third quarter, we successfully navigated the challenges presented by the COVID pandemic thanks to our outstanding operating team. By effectively yielding our casino floors and amenities while implementing new efficiencies throughout our business, we greatly enhanced our operating performance in a lower-revenue environment. On a companywide basis, we delivered 12 per cent EBITDAR growth and improved operating margins by more than 1,000 basis points, as both our Las Vegas Locals and Midwest & South segments set records for quarterly EBITDAR and margins. At the same time, we continued to build the foundation for future growth through the expansion of our partnership with FanDuel Group, successfully launching mobile sports betting platforms in Illinois and Iowa and expanding our digital reach to more than 30 million adults nationwide. We are proud of our team’s ability to successfully execute our strategy and are committed to sustaining a more efficient and profitable operating model into the future.”
During the third quarter, the Las Vegas Locals segment reported revenues of $171.1m, a decline of 20 per cent from prior year, while Adjusted EBITDAR grew more than 23 per cent to $78.9m and operating margins increased more than 1,600 basis points to 46.1 per cent. Midwest & South revenues fell 15 per cent to $463.6m while Adjusted EBITDAR increased nearly 17 per cent to $182.5m, and operating margins rose approximately 1,100 basis points to 39.4 per cent, as strong operating performances across the segment more than offset the impact of property closures related to Hurricanes Laura and Sally. The company’s Downtown Las Vegas segment reported revenues of $17.5m, down 71 per cent from prior year, and an Adjusted EBITDAR loss of $1.5m, due to significant travel restrictions in Hawaii and overall declines in Las Vegas visitation.