Boyd Gaming has expressed optimism about improved business prospects in 2021, particularly in the online gaming industry, as it shuts the door on 2020 in which the pandemic heavily impacted it’s books.
The remarks come as the company releases its new trade report, which sees a decrease of 23.6 percent in fourth quarter sales to $635.8 million (2019: $833.1 million), a decrease of nine percent in adjusted EBITDA to $184.5 million (2019: $202.8 million), and a net income of $83.3 million compared to $24.3 million for the same time a year ago.
‘Midwest & South’ declined 15.4 percent from $539.7m to $456.2m due to the temporary closure of Par-A-Dice Hotel Casino in mid-November and Valley Forge Casino Resort in early December, taking a look at sales through the core reporting segments of the business. In January, both venues reopened.
The ‘Las Vegas Locals’ division of the company posted revenue of $161.4 m, down 27.9 percent from the $223.8 m of the previous year, as continued strength from local customers across the segment was offset by softness in the Orleans destination market.
In addition, Boyd’s ‘Downtown Las Vegas’ division finished with $18.1 million in sales, representing a $69.5 million fall of 73.9 percent, reflecting continued weakness in tourism to the southern Nevada market, particularly from the core Hawaiian customer base of the segment.
Boyd records a 34.5 percent decrease in sales to $2.17bn for the full year to the date ending December 31, 2020 (2019: $3.32bn), a 36.4 percent decrease in adjusted EBITDA to $507.9m (2019: $798.9m), and a net loss of $134.7m compared to 2019 revenue of $157.6m.
‘Midwest & South,’ ‘Las Vegas Local,’ and ‘Downtown Las Vegas’ reported sales decreases of 30.4 percent, 36.2 percent, and 63.3 percent to $1.52bn (2019: $2.18bn), $561.9m (2019: $880.9m), and $94.5m (2019: $257.6m), respectively, in the three aforementioned reporting segments.
Keith Smith, Boyd Gaming’s president and CEO, said: “Thanks to the dedicated efforts of the entire Boyd Gaming team and their commitment to our more efficient operating model, our company continues to produce the highest margins in our history, even in the face of stricter COVID restrictions and several property closures.
“We achieved record company wide operating margins for the second consecutive quarter, as nine properties nationwide set fourth-quarter EBITDAR records. In the Midwest & South, we delivered another record EBITDAR performance during the quarter, despite the closures of Par-A-Dice and Valley Forge due to state mandates.
“And in our Las Vegas Locals segment, business from our core local customer remains strong, with solid EBITDAR and margin growth on a same-store basis excluding The Orleans. At the same time, we continue to see encouraging results from online gaming.
“Through our partnership with FanDuel, we are benefiting from strong growth in mobile sports betting, and expect further upside as we prepare to launch a Stardust-branded iCasino in Pennsylvania in April, pending regulatory approval. We are excited about the long-term opportunities of online gaming and the improving prospects for our business in 2021 and beyond.”