LAS VEGAS (KLAS) — Boyd Gaming Corporation (NYSE: BYD) on Tuesday reported financial results for the second quarter ended June 30 — a quarter that opened just after resorts closed in Las Vegas during the COVID-19 pandemic.
The quarter also saw resorts reopen on June 4 in Las Vegas. Overall, Boyd has opened 26 properties nationwide since mid-May.
Revenue was about 25% of levels from the same quarter in 2019, but Boyd executives were upbeat about the reopenings.
Boyd Gaming reported second-quarter 2020 revenues of $209.9 million, compared to $846.1 million in the second quarter of 2019. The company recorded a net loss of $108.5 million, or $0.96 per share compared to net income of $48.5 million, or $0.43 per share, for the year-ago period.
The company reports cash on hand of $1.31 billion, and total debt of $4.98 billion.
Keith Smith, President and Chief Executive Officer, said the California Hotel & Casino in downtown Las Vegas is the only property that underperformed after the reopenings. But business at the Fremont Hotel & Casino offset the drop at the California.
Also in Las Vegas, locals business proved strong. Particularly, Smith pointed to the Gold Coast and The Orleans — two hotels that normally have a fairly large tourist clientele. Locals turned out at both those hotels and helped Boyd beat expectations.
Smith said business has been “remarkably stable.”
“It’s weekends where we feel the pinch,” he said. The company can afford to go forward for a long time with current business levels, but they expect
Two weeks ago, Boyd said 25-60% of its workforce could be laid off. Layoffs have stayed at the lower end of that range, a company spokesman said Tuesday. During the Tuesday call on revenue, it was clear the company wasn’t ready to bring employees back immediately.
The new Boyd strategy is to avoid adding costs as they are able to reopen more parts of the resorts. Boyd executives said that’s the way they will continue their success. Rather than aggressively spending, Boyd says their best strategy is to reopen with close attention to the bottom line.
Smith said social distancing, mask requirements and cleaning protocols do not appear to be discouraging customers — and customers are generally spending more.
The company also likes its position moving forward with online gaming, partnering with FanDuel. “By some estimates, interactive gaming could become a $10 billion industry,” Smith said.
Boyd is also positioning the Stardust brand as a player in the market, offering free online play in a “social casino” setting.
Boyd operates 11 properties in Las Vegas:
- Aliante Casino + Hotel + Spa
- The Orleans Hotel & Casino
- Gold Coast Hotel & Casino
- Suncoast Hotel & Casino
- Sam’s Town Las Vegas
- Eastside Cannery Casino & Hotel
- Cannery Casino Hotel
- California Hotel Casino
- Fremont Hotel & Casino
- Main Street Station Casino Brewery Hotel
- Eldorado Casino
The company has yet to reopen the East Side Cannery, Main Street Station in downtown Las Vegas and Eldorado Casino in Henderson.