Boyd Gaming has affirmed confidence in its COVID recovery strategies, stating that “since reopening began, we are off to an excellent start,” with a streamlined digital approach said to continue in an effort to position the company for the “future of our industry.”
Having closed all 29 of its assets nationally under state and local orders from March 18 – May 19, the company subsequently resumed operations at all but three as of the month ‘s beginning.
Regardless of the effects of the pandemic, the gaming and hospitality company registered sales of $209.9 m in the second quarter (2019: $846.1 m), with net loss ending at $108.5 m, as compared to sales of $48.5 m posted a year earlier. Adjusted EBITDAR came in at $16.1 million (2019: $232.5 million).
In the sixth month period ending June 30, 2020, the Las Vegas based company’s overall revenue is announced as $890.3 m (2019: $1.67bn), an adjusted EBITDAR of $160.5 m (2019: $455.6 m) and a net loss of $256.1 m compared to an profit of $93.9 m a year before.
Boyd Gaming president and chief executive officer Keith Smith said: “Across the country, our team members did a tremendous job getting our properties back open quickly and safely over the final six weeks of the quarter. And since reopening began, we are off to an excellent start.
“On a comparable basis at our reopened properties, we achieved company wide EBITDAR growth and significant margin improvement while complying with state-regulated reductions in gaming capacity. During the reopening period, our midwest and south properties posted double-digit EBITDAR gains, while our Las Vegas locals properties also improved EBITDAR performance versus prior year.
“While overall visitation and revenues are down, spend per visit is robust, and we have successfully streamlined operating and marketing expenses to drive margin gains of more than 1,000 basis points in both the midwest and south and Las Vegas locals segments. These positive operating trends are continuing into July, giving us confidence that we can sustain increased efficiencies in our operating model.”
With different properties reopening during Q2, Boyd reports that combined sales for the 16 reopened ‘Midwest & South’ segment properties were down 18 percent from the comparable prior-year era, with adjusted EBITDAR up 16 percent.
The seven ‘Las Vegas Locals’ properties that reopened on June 4, 2020 posted a 28 per cent decrease in combined sales compared with the previous year, with adjusted EBITDAR rising by one per cent.
The group’s two reopened division entities of ‘Downtown Las Vegas’ posted a cumulative sales decline of 60 percent from the previous year, although Adjusted EBITDAR cumulative broke even for the reopening period.
Following a relaunch last week of its Stardust brand in the form of a free-to-play mobile gaming app, Smith continued: “We are also making great progress positioning our company for the digital future of our industry. With the recent launch of our Stardust Social Casino mobile app, we established our first interactive gaming presence under the Stardust brand.
“We also continued to expand our strategic partnership with FanDuel Group as we introduced an online casino product in the state of Pennsylvania. With our industry-leading strategic partner and the iconic Stardust brand, Boyd Gaming is in an excellent position to capitalise on the compelling growth opportunity presented by interactive gaming and mobile sports betting.”