For the trading period ended September 30, 2020, Boyd Gaming Corporation announced its Q3 financial results, showing a decrease in sales and net income, but improvement in EBITDAR and year-on-year operating margins.
In its update, the company posted sales of $652.2 m ($819.6 m 2019) in Q3 2020, while net revenue hit $38.1 m ($39.4 m 2019). Total adjusted EBITDAR rose by 12 percent to $238.8 m ($213.5 m 2019) and operating margins across the company were 36.6 percent, up substantially from 26.1 percent year-on-year.
The Las Vegas Locals division of the organisation posted sales of $171.1 m during the third quarter of 2020, a decrease of 20 percent from the previous year, while adjusted EBITDAR increased more than 23 percent to $78.9 m and operating margins increased to 46.1 percent by more than 1,600 basis points.
Revenues from Midwest & South dropped by 15 percent to $463.6 million, while adjusted EBITDAR rose by almost 17 percent to $182.5 million, and operating margins increased by nearly 1,100 basis points to 39.4 percent, as good operating results across the segment more than offset the effect of Hurricanes Laura and Sally-related property closures.
The Downtown Las Vegas division of the company posted sales of $17.5 million , down 71 percent from the previous year, and an adjusted EBITDAR loss of $1.5 million, owing to major travel restrictions in Hawaii and overall visitation decreases in Las Vegas.
Boyd Gaming had cash on hand of $506 m as of September 30, 2020, and gross debt of $4.04bn. Cash and debt balances reflect the repayment, during the third quarter, of the company’s remaining revolving credit facility borrowings.
President and CEO Keith Smith 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.
“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.”